Insurance for site preparation (excavation) contractors

What goes wrong in this trade

Trench collapse and utility strikes: the workers' comp claims are severe, and a struck gas or fibre line produces a third-party loss out of proportion to the job.

The checklist for site preparation (excavation) contractors

• GL
  General liability

  Property damage and injury on client premises is the core exposure; every GC and most licences require a certificate.

  Not required by federal law. Required in practice by most contracts, landlords and many state contractor licences.
• WC
  Workers' compensation

  Required once you have employees in nearly every state.

  Required by state law in nearly every state once you have employees; the employee-count threshold and exemptions are set state by state and are not reproduced here.
• Auto
  Commercial auto liability

  Trucks and vans carrying crews and material.

  State minimum auto liability applies to business vehicles. Interstate for-hire carriers of vehicles 10,001 lb GVWR and up must carry the 49 CFR 387.9 minimums ($750,000 non-hazardous property; $1,000,000 oil; $5,000,000 bulk hazmat).
• Tools
  Inland marine (tools and equipment)

  Tools and material on site and in the truck are not covered by a property policy.

  Not required by law.
• Bond
  Surety bond

  State contractor licences commonly require a licence bond; public jobs require performance bonds.

  Many state contractor licences require a licence bond; public work requires bid and performance bonds under state law and, federally, the Miller Act.
• Umbrella
  Commercial umbrella / excess

  Commercial GCs often ask for limits above a standard GL.

  Not required by law; required by many general contractors and commercial landlords.

Red tags mark policy types that a law or licence usually requires; green tags are what contracts, landlords and clients ask for. Tailor the list for your situation (no employees, no vehicles, alcohol) with the checklist tool.

What the injury record means for the premium

With 1.5 cases per 100 workers the workers' compensation base rate for this class is comparatively modest, and only 67 percent of cases involved days away, restriction or transfer. Where the premium goes instead is liability: property damage and injury on client premises is the core exposure; every gc and most licences require a certificate, and that is a general-liability and professional-liability question rather than a payroll one. Expect the certificate requirements in your contracts to matter more than your loss history.

The nearest trades by injury rate are security guards and patrol services (1.5), painting and wall covering contractors (1.6), home health care services (1.6); the same payroll insured in those classes would start from a similar workers' comp base.

Legal, licence or contract?

Sources: BLS Survey of Occupational Injuries and Illnesses, Table 1 (2024), incidence rates per 100 full-time workers; BLS SOII Table 3 (2024), hours worked by detailed industry; BLS Census of Fatal Occupational Injuries, Table A-1 (2024). Fatal rate per 100,000 FTE is derived (count ÷ hours × 200,000,000) and approximate. Checked 2026-10-23.