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EXCAVATION CONTRACTOR ENVIRONMENTAL INSURANCE

EXCAVATION CONTRACTOR ENVIRONMENTAL INSURANCE
The Siliconreview
25 January, 2021

You already know that the excavation industry is high risk. As the world gets Greener and Greener, it is not only bodily injuries and property damage you have to be on the lookout for. The line of work your company operates in can also cause environmental pollution.

Is the environmental damage your fault? Even if you don’t believe your excavation business has done anything wrong, you could still be held liable. These liabilities can cost your business money and even bankrupt you. However, in most cases, securing your business an Excavators General Liability and Property insurance can overcome these risks.

Specialized insurance coverage

You need an Environmental Insurance Policy. Unfortunately, no one insurance policy covers all the claims that can be brought against your excavation business. In addition, there are no industry standards when it comes to Environmental coverage. What does this mean? Always read the small print! It is highly advisable to consult an insurance agency that specializes in the industry your business is in such as ContractorsLiability.com, Farmerbrown.com, as they focus on the construction industry risks.

Running your excavation contracting business with only General Liability coverage leaves you vulnerable. Environmental insurance is a policy that covers pollution or damages caused by your operations. In other words, it covers the pollution exclusions of your Excavators General Liability and Property insurance policies.

What sort of Environment Insurance coverages are there?

So far, there is no standard for claims covered by Environmental Insurance policies. You will find that the coverage offered by different insurers are very different.

An Environmental Insurance policy provides

  • The cost of clean-ups;
  • Bodily injuries (to enhance your General Liability coverage)
  • The cost of property damage (also, to enhance your General Liability)
  • Legal costs

What other provisions can this policy provide?

  • Clean-up costs for contaminants such as bacteria, fungi, and silica. 
  • Reputational damage
  • Dumping pollutants at insured sites at midnight
  • Cost of transporting pollutants as cargo
  • Rent losses
  • Disposal at sites not owned by your business
  • Road pollution

Excavation Contraction Environmental insurance policies

There are 3 fundamental Environmental Insurance policies to consider:

1) Environmental Impairment Liability

While you are applying for this type of policy, the insurance underwriters will check your locations first. They also verify the size of the locations, the use, and existing pollution. They investigate the type of raw materials present in that area. This policy can offer coverage for rent losses, clean-up costs, business interruption, and extra expenses.

2) Professional Liability

Coverage is designed explicitly for excavation professionals. It protects you against possible claims, such as negligence. The underwriting process follows the usual procedures and focuses on your qualifications.

3) Contractors Environmental Liability

Coverage for pollution that may occur as a result of your work as an excavation contractor.

Your insurance application will contain a description of your operations and will provide coverage in line with the description. The underwriting process will also estimate the size of your operations.

Do your research

Ultimately, the decision will rest with you and there are many resources that can help you along the way.  The fundamentals are discussed in this article called “The Right Insurance for An Excavator Business“ and it will jumpstart your way to getting the right policies for your business.