Excavator insurance is a specialized type of contractor insurance that protects both the heavy machinery (such as diggers, backhoes, and mini-excavators) and the business operating it. Whether you own a single piece of equipment or a fleet, the right policy can help cover repairs, theft, damage, jobsite liability, and even business interruption after an accident.
Most policies bundle several types of coverage into one plan, including general liability, inland marine (for equipment), and commercial property insurance. Some may also include workers’ comp and commercial auto, especially for contractors with crews and vehicles.
Whether you’re leasing or owning your excavator, this insurance is essential for meeting client and compliance requirements, reducing out-of-pocket repair costs, and protecting your livelihood. This article explores everything needed to get your hands on an excavator insurance, whether you’re renting or owning.
Excavator Liability Insurance
Excavator liability insurance shields you from claims filed against you by third parties. This can include the developer running the project, the business or person who owns the land that you’re working on, or even casual strangers. Liability coverage for excavators can be classified as general liability insurance and public liability insurance.
Business Insurance for Excavation Contractors
Excavation contractors’ insurance policy is a type of tailored coverage for businesses that provide excavation services. Included in this specialized insurance plan are numerous types of business insurance for excavation contractors, namely:
- General liability insurance
- Professional liability insurance
- Workers compensation insurance
- Commercial property insurance
General Liability Insurance for Excavators
Similar to tractors and box trucks, excavators are very heavy and carries high risk. This is why companies always include general liability coverage in their specialized excavators’ insurance.
General liability insurance for excavators will help to cover the following risks:
- Third-party personal injuries: If a claim is filed, this excavation liability insurance will take care of the aggrieved person’s medical expenses
- Third-party property damage: Your excavator is also covered by general liability insurance if it causes an accident that results in the possessions of third parties being damaged. If a person files a claim, this excavating insurance will reimburse the value of the damaged property
- Legal expenses: In personal injury claims and property damage claims, general liability insurance takes care of your attorney fees, administrative costs, and the settlements to be given if ever aggrieved third parties win the lawsuit.
Mini Digger Insurance
Mini digger insurance is a specialized coverage for those using small excavators for projects. Inclusions in tailored mini excavator insurance are general liability, equipment breakdown, and theft insurance. Note that, depending on the carrier underwriting it, equipment breakdown insurance can provide a replacement if your micro digger gets damaged or stolen and is deemed unusable. Note that equipment breakdown coverage is a common inclusion in tailored forklift insurance.
Professional Liability Insurance for Excavator Contractors
As a contractor, you’re surely working with operators hired to take charge of the excavators owned by your business. Such employees might commit a mistake or be negligent while operating a unit.
This excavation business insurance provides help in such a situation. Professional liability insurance will cover attorney fees, settlements, administrative costs, and other related expenses if aggrieved third parties, who suffered economic or financial losses due to your excavator, sue for:
- Negligence
- Misrepresentation
- Violation of good faith
- Violation of fair dealing
- Breach of confidentiality
- Missed deadlines
- Inaccurate advice
- Other causes of action considered errors and omissions
Note that excavation insurance companies underwrite professional liability insurance as a claims-made policy or occurrence policy.
Excavator Contractor Commercial Property Insurance
Your excavator insurance quote will offer commercial property insurance. Commercial property insurance functions to cover tangible business assets. When bought as a basic business policy, commercial property insurance provides coverage for:
- Building damage: Commercial property insurance will take care of repair expenses if your business’s covered building sustains damage due to fire, theft, vandalism, and other covered perils.
- Building destruction: If your business’s covered building is destroyed by fire or extreme weather, commercial property insurance provides the money you can use to cover reconstruction costs
Excavator Contractor Equipment Breakdown Coverage
Equipment breakdown insurance is very useful in your work as an excavator contractor. This will recoup losses if a covered excavator sustains damage while being used. The theft of the entire unit or its parts is also covered.
Note that equipment breakdown coverage is an automatic inclusion in excavator hire insurance policies. Another thing, this coverage isn’t only useful for excavators but also for other equipment such as skid steers and dump trucks too.
Workers Compensation Insurance for Excavator Contractors
According to National Institute for Occupational Safety and Health, 346 excavator-related deaths were recorded between 1992 and 2000. The majority of the deaths were caused by being hit by the machine itself or by its quick-disconnect buckets. This is a somber reminder of the importance of taking care of your employees. Not only is workers’ comp an important coverage, but in nearly every state it is required by law.
Workers compensation insurance is a coverage for your excavator operators. This will cover expenses, like wage replacement or medical bills, if they ever sustain a work-related injury or disease. Particular things covered are:
- Surgeries, therapies, and other medical treatments procedures
- Medication
- Hospitalization
- Lost income compensation
- Rehabilitation
- Death benefits
Excavator Insurance Cost
Excavator insurance cost is around $115 per month or $1,380 per year on average for a $1 million general liability insurance coverage.
Rates depend on your business’s safety record as well as other factors such as the cost of the diggers you’re using, your business size, claims history, location, gross income, and more.
Mini Excavator Insurance Cost
Mini excavator insurance cost is around $75 per month or $900 per year on average for a mini excavator of $100,000 value. The cost of mini excavator insurance is determined by a lot of factors. For instance, while machine size is a major determinant of your mini excavator insurance cost, there are also secondary factors, like the decreased probability of an accident happening, and scale of the damage done.
Bobcat Insurance Cost
Bobcats or skid steers are sometimes used in tandem with excavators and mini-diggers. So, how much does excavation insurance cost for these machines? Based on our research, bobcat insurance cost is $67 per month or $804 per year for a $1 million general liability coverage.
Best Excavator Insurance Companies
CoverWallet
CoverWallet is a digital broker that helps contractors compare quotes and buy coverage online. You can get insured quickly for general liability, commercial property, and inland marine (equipment insurance).
They also provide online certificate of insurance (COI), which is essential when bidding for jobs.
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Average cost: $80/month
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Our rating: 10/10
Pros
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Offers terrorism coverage
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Manage policies 100% online
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Cancel anytime
Cons
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Broker, not an actual insurance company
Thimble
Thimble provides fast, flexible contractor insurance – including short-term policies for specific jobs. Their excavator insurance is underwritten by partners like Tivly, and covers liability, equipment, and property.
It’s a great option for small or mobile contractors who want on-demand coverage with no long-term commitment.
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Average cost: $90/month
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Our rating: 10/10
Pros
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Short-term and monthly policies
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Buy online in minutes
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Instant COI available
Cons
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Policies underwritten by other insurers
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No 24/7 phone support
NEXT
NEXT Insurance offers a comprehensive set of policies for excavator contractors, including general liability, professional liability, tools and equipment (inland marine), workers’ compensation, commercial property, and commercial auto coverage. It’s a great option for contractors who need multiple types of insurance, especially since NEXT gives a 10% discount when you bundle two or more policies. Policies are fully digital, and you can access a live certificate of insurance (COI) anytime.
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Average cost: $300 per month
Pros
Get excavator insurance coverage starting from $12/mo now.
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Live certificate of insurance
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10% discount for bundling policies
Cons
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Doesn’t sell stand-alone theft coverage for excavator contractors
Our rating: 9/10
Progressive
Progressive insures excavation businesses through its broader construction insurance program. Available policies include general liability, workers’ compensation, commercial auto, and business owner’s policies (BOP). If you already carry a Progressive commercial auto policy, you can receive a discount when adding business insurance. However, Progressive doesn’t offer a policy specifically designed for excavators, and it lacks short-term mini digger insurance.
- Average cost: $408 per month
Pros
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Discounted rates if you have a Progressive commercial auto policy
Cons
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Doesn’t have a specialized excavator business insurance policy
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No short-term coverage options for mini diggers
Our rating 9/10
State Farm
State Farm offers insurance for excavation contractors, but availability and coverage depend on your business operations and location. Coverage options may include general liability, commercial property, equipment (inland marine), and umbrella policies. Known for its strong customer service and claims handling, State Farm is ideal if you prefer working with a dedicated local agent. However, quotes and policy management are not available online – you must contact an agent directly.
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Average cost: $419 per month
Pros
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Fast and efficient claims service
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Dedicated support teams for different insurance needs
Cons
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No online quote for excavator insurance
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Must contact an agent for quotes and policy management
Our rating: 8/10
The Hartford
The Hartford offers excavator insurance with several contractor-specific features, such as waiver of subrogation, free additional insureds, and products and completed operations coverage. You can also add endorsements for additional protection, including contractual liability and limited professional liability. While their offerings are robust, The Hartford does not provide commercial auto insurance specifically for excavators.
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Average cost: $397 per month
Pros
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Waiver of subrogation included
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Free additional insureds
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Numerous optional endorsements
Cons
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Doesn’t offer commercial auto insurance for excavators
Our rating: 8/10
Liberty Mutual
Contractors like you can insure your excavators with Liberty Mutual. It offers contractors’ equipment insurance that covers excavators you own, lease, or rent. The policy falls under its inland marine line and can be tailored to the value and use of your equipment. Liberty Mutual uses in-house adjusters to help expedite claims and customer support. However, they don’t offer a specific quote or program tailored to excavation businesses.
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Average cost: $456 per month
Pros
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Access to Liberty’s in-house claims adjusters
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Covers owned, leased, or rented excavators
Cons
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Doesn’t offer tailored excavator-specific quotes
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Requires agent interaction for most policies
Our rating is 7/10
FAQs
What insurance do you need for an excavator?
Depending on the nature of your operations, for an excavator, you will likely need general liability insurance, workers’ compensation, and coverage for tools and equipment, such as inland marine.
How much does excavator insurance cost?
The cost of excavator insurance varies based on different factors. However, you should expect to pay between $1,000 and $3,000 for general liability insurance coverage.
Can I get insurance for used excavators?
Yes. You can get insurance for used excavators. However, the age, condition, and market value of the used excavator will be considered.
Is Backhoe insurance the same as Excavator Insurance?
Excavators are different from backhoes, though both are related. Backhoes are slightly smaller and can be used for other tasks aside from those that an excavator usually does. And so, you can find insurance companies providing backhoe loader insurance.
Inclusions in tailored backhoe insurance are equipment breakdown coverage, commercial property insurance, commercial auto insurance, and general liability insurance.
Do I need excavator insurance if I rent equipment?
Yes. Many rental contracts require you to provide proof of insurance, and your liability doesn’t disappear just because the machine isn’t yours.
Dig Into the Right Coverage Before It’s Too Late
You cannot overlook the importance of excavator insurance in protecting your business from risks like property damage, theft, and workplace hazards. As long as you can get the right coverage, you can focus on project execution with peace of mind, knowing you’re financially secure. To get the most from an excavator business insurance policy, assess your needs, compare policies, explore reliable excavator insurance quote providers like Barter, and choose a provider that offers comprehensive protection at a competitive rate.
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