Excavation insurance averages $334 monthly, ranging from $93 to $820 based on coverage needs and location factors.
Get matched with cheap excavation business insurance below.
Updated: November 10, 2025
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Excavation business insurance costs range from $1,116 to $9,842 annually on average, depending on your coverage type, state and sub-industry.
Your excavation insurance premiums depend on location, claims history, property types serviced and employee count affecting your final rates.
Shop multiple business insurers, bundle policies, increase deductibles and pay annually to find affordable excavation business insurance costs.
We found average business insurance costs for excavation companies for commonly needed coverage are as follows:
| BOP | $692 | $8,299 |
| General Liability | $468 | $5,617 |
| Professional Liability (E&O) | $68 | $813 |
| Workers' Comp | $107 | $1,286 |
Note: We based these rates on small businesses with two employees across 79 major industries, focusing on four coverage types: general liability, professional liability/errors and omissions (E&O), workers' comp and business owner's policy. Your actual rates will vary based on your specific business factors and location.
Select your industry and state to get a customized quote.
The cost of general liability coverage for excavation businesses varies by location. Maine costs the lowest at $405 monthly compared to the $468 national average, while New York reaches $544 monthly.
| Alabama | $456 | $5,474 |
| Alaska | $428 | $5,134 |
| Arizona | $444 | $5,332 |
| Arkansas | $449 | $5,385 |
| California | $521 | $6,255 |
| Colorado | $464 | $5,567 |
| Connecticut | $508 | $6,101 |
| Delaware | $500 | $5,998 |
| Florida | $507 | $6,078 |
| Georgia | $475 | $5,704 |
| Hawaii | $500 | $5,995 |
| Idaho | $444 | $5,323 |
| Illinois | $514 | $6,164 |
| Indiana | $456 | $5,476 |
| Iowa | $445 | $5,346 |
| Kansas | $454 | $5,454 |
| Kentucky | $435 | $5,224 |
| Louisiana | $541 | $6,489 |
| Maine | $405 | $4,865 |
| Maryland | $446 | $5,357 |
| Massachusetts | $491 | $5,891 |
| Michigan | $443 | $5,317 |
| Minnesota | $439 | $5,266 |
| Mississippi | $470 | $5,641 |
| Missouri | $460 | $5,519 |
| Montana | $466 | $5,590 |
| Nebraska | $443 | $5,312 |
| Nevada | $532 | $6,380 |
| New Hampshire | $465 | $5,584 |
| New Jersey | $530 | $6,363 |
| New Mexico | $471 | $5,647 |
| New York | $544 | $6,532 |
| North Carolina | $405 | $4,865 |
| North Dakota | $407 | $4,881 |
| Ohio | $434 | $5,210 |
| Oklahoma | $448 | $5,379 |
| Oregon | $435 | $5,215 |
| Pennsylvania | $540 | $6,479 |
| Rhode Island | $514 | $6,169 |
| South Carolina | $482 | $5,783 |
| South Dakota | $437 | $5,249 |
| Tennessee | $456 | $5,476 |
| Texas | $472 | $5,664 |
| Utah | $446 | $5,355 |
| Vermont | $449 | $5,391 |
| Virginia | $426 | $5,113 |
| Washington | $532 | $6,385 |
| West Virginia | $491 | $5,891 |
| Wisconsin | $459 | $5,511 |
| Wyoming | $433 | $5,192 |
Note: We based these general liability rates on excavation businesses with two employees across different states. Your rates will vary based on your location, claims history and the types of properties you excavate.
Workers' compensation insurance for excavation businesses varies by state. Maine costs $93 monthly, while Pennsylvania costs $124 monthly. State regulations and claim histories affect rates.
| Alabama | $105 |
| Alaska | $97 |
| Arizona | $101 |
| Arkansas | $103 |
| California | $118 |
| Colorado | $105 |
| Connecticut | $116 |
| Delaware | $115 |
| Florida | $116 |
| Georgia | $109 |
| Hawaii | $113 |
| Idaho | $101 |
| Illinois | $118 |
| Indiana | $105 |
| Iowa | $101 |
| Kansas | $102 |
| Kentucky | $100 |
| Louisiana | $122 |
| Maine | $93 |
| Maryland | $102 |
| Massachusetts | $112 |
| Michigan | $101 |
| Minnesota | $100 |
| Mississippi | $107 |
| Missouri | $106 |
| Montana | $107 |
| Nebraska | $101 |
| Nevada | $122 |
| New Hampshire | $107 |
| New Jersey | $121 |
| New Mexico | $107 |
| New York | $124 |
| North Carolina | $93 |
| Oklahoma | $100 |
| Oregon | $100 |
| Pennsylvania | $124 |
| Rhode Island | $118 |
| South Carolina | $111 |
| South Dakota | $101 |
| Tennessee | $104 |
| Texas | $107 |
| Utah | $102 |
| Vermont | $102 |
| Virginia | $97 |
| West Virginia | $113 |
| Wisconsin | $106 |
Note: We based these workers' comp rates on excavation businesses with two employees across different states. Your workers' comp requirements and costs will vary by state since each has different regulations.
Your professional liability cost will vary by state. This coverage averages $68 monthly nationwide. North Dakota offers the most affordable rates at $58 monthly, while New York has the highest costs at $79 monthly.
| Alabama | $65 |
| Alaska | $60 |
| Arizona | $65 |
| Arkansas | $64 |
| California | $77 |
| Colorado | $65 |
| Connecticut | $74 |
| Delaware | $73 |
| Florida | $75 |
| Georgia | $69 |
| Hawaii | $70 |
| Idaho | $64 |
| Illinois | $75 |
| Indiana | $66 |
| Iowa | $65 |
| Kansas | $66 |
| Kentucky | $64 |
| Louisiana | $76 |
| Maine | $59 |
| Maryland | $64 |
| Massachusetts | $71 |
| Michigan | $65 |
| Minnesota | $64 |
| Mississippi | $69 |
| Missouri | $70 |
| Montana | $67 |
| Nebraska | $64 |
| Nevada | $76 |
| New Hampshire | $67 |
| New Jersey | $77 |
| New Mexico | $68 |
| New York | $79 |
| North Carolina | $59 |
| North Dakota | $58 |
| Ohio | $62 |
| Oklahoma | $63 |
| Oregon | $62 |
| Pennsylvania | $77 |
| Rhode Island | $74 |
| South Carolina | $70 |
| South Dakota | $63 |
| Tennessee | $65 |
| Texas | $68 |
| Utah | $65 |
| Vermont | $64 |
| Virginia | $63 |
| Washington | $78 |
| West Virginia | $72 |
| Wisconsin | $66 |
| Wyoming | $62 |
Note: We based these professional liability rates on excavation businesses with two employees across different states. Your actual rates will depend on your services offered and location.
Business owner's policy (BOP) premiums vary by state. BOP insurance costs range from $596 in Maine to $820 in Louisiana.
| Alabama | $664 |
| Alaska | $629 |
| Arizona | $661 |
| Arkansas | $664 |
| California | $770 |
| Colorado | $693 |
| Connecticut | $738 |
| Delaware | $732 |
| Florida | $758 |
| Georgia | $687 |
| Hawaii | $725 |
| Idaho | $652 |
| Illinois | $763 |
| Indiana | $690 |
| Iowa | $673 |
| Kansas | $671 |
| Kentucky | $640 |
| Louisiana | $820 |
| Maine | $596 |
| Maryland | $662 |
| Massachusetts | $732 |
| Michigan | $667 |
| Minnesota | $644 |
| Mississippi | $711 |
| Missouri | $666 |
| Montana | $685 |
| Nebraska | $647 |
| Nevada | $783 |
| New Hampshire | $683 |
| New Jersey | $801 |
| New Mexico | $692 |
| New York | $793 |
| North Carolina | $605 |
| North Dakota | $598 |
| Ohio | $661 |
| Oklahoma | $648 |
| Oregon | $645 |
| Pennsylvania | $791 |
| Rhode Island | $755 |
| South Carolina | $708 |
| South Dakota | $642 |
| Tennessee | $663 |
| Texas | $707 |
| Utah | $652 |
| Vermont | $672 |
| Virginia | $624 |
| Washington | $791 |
| West Virginia | $721 |
| Wisconsin | $683 |
| Wyoming | $634 |
Note: We based these BOP rates on excavation businesses with two employees across different states. Your actual rates will vary based on your business size, location, and coverage needs.
Excavation business insurance costs vary by provider, ranging from $261 to $464 monthly. These price differences reflect each insurer's market focus and risk appetite, which shift based on profitability and coverage expansion opportunities.
| Chubb | $409 | $4,909 |
| Coverdash | $318 | $3,815 |
| Hiscox | $362 | $4,347 |
| NEXT Insurance | $279 | $3,344 |
| Nationwide | $284 | $3,409 |
| Progressive Commercial | $334 | $4,006 |
| Simply Business | $464 | $5,571 |
| The Hartford | $312 | $3,743 |
| Thimble | $360 | $4,314 |
| biBERK | $261 | $3,137 |
Your excavation business insurance cost depends on multiple factors insurers consider when calculating your premium:
Your operating territory directly impacts insurance costs through soil conditions, weather patterns and underground utility density. Excavating in areas with high water tables, rocky terrain or extensive utility networks increases accident risk and claim potential.
State regulations governing excavation depth, shoring requirements and environmental protections create substantial rate variations across different jurisdictions.
Previous incidents involving equipment accidents, property damage or worker injuries dramatically affect your premiums for a minimum of three to five years.
A single utility strike, causing service disruptions or an excavator rollover, can substantially increase your rates. Contractors maintaining clean safety records with documented dig-safe compliance and regular equipment inspections secure preferred pricing from carriers.
Residential lot preparation presents manageable risk levels compared to commercial developments or infrastructure projects. Excavating near existing structures, working around buried utilities or handling contaminated soil removal introduces elevated liability exposures.
Projects involving steep slopes, deep trenching or work in congested urban environments command higher premiums due to increased accident potential.
Heavy equipment operators face significant injury risks from machine rollovers, trench collapses and struck-by hazards. Workers' compensation rates for excavation work rank among the highest in construction trades, with premiums scaling directly with your total payroll.
Each equipment operator, laborer and truck driver you employ increases your workers' comp burden.
Basic site preparation and grading occupy the lower risk tier for excavation contractors. Specialized services like deep foundation excavation, underground utility installation or demolition with excavators introduce work where errors can cause catastrophic property damage or infrastructure failures.
Blasting operations, dewatering systems or environmental remediation work require additional specialized coverage.
Project volume and equipment fleet size indicate your total exposure to potential claims. Small operations with one excavator earning $200,000 annually maintain different risk profiles than established contractors running multiple machines and grossing $2 million across concurrent job sites.
Higher revenue reflects more active projects, increasing opportunities for accidents despite maintaining quality safety standards.
Underground utility strikes and property damage claims can quickly exceed basic coverage limits.
Most excavation contractors carry $1 million to $2 million in general liability, though working near high-value infrastructure or on commercial projects often demands $5 million or more. Pollution liability for soil contamination and contractor's equipment coverage for your machinery fleet add substantial costs beyond basic liability premiums.
Your heavy machinery represents a massive capital investment requiring comprehensive protection. Basic excavation contractors operating smaller machines maintain moderate equipment insurance costs, while those running large excavators, bulldozers, articulated dump trucks and specialized attachments need substantial coverage.
Equipment age, maintenance records and whether you own or lease your fleet all influence premium calculations significantly.
Financial credibility affects insurance accessibility and pricing for excavation contractors. Operators with excellent credit scores often secure discounts of 20% to 50% compared to those with credit challenges.
Strong financials demonstrate operational stability in a capital-intensive industry where insurers carefully evaluate contractor viability and commitment to safety investments.
Reducing your excavation business insurance cost requires strategic shopping and our step-by-step guide to smart business practices. Here's how you can find the best cheap business insurance for your excavation business and build a better risk profile over time.
Understanding the types of coverage your excavation company actually needs prevents paying for unnecessary policies. For excavation companies, we recommend general liability, workers comp, professional liability, tools and equipment insurance, commercial auto insurance and surety bonds for comprehensive protection that meets personal and regulatory requirements.
Rates vary dramatically between excavation business insurers for identical coverage. Getting quotes from at least three companies often reveals substantial savings, and independent agents can handle the comparison shopping for you.
Most insurers discount bundled policies substantially. Combining general liability, commercial property and commercial auto with one carrier costs less than buying separate policies from different companies.
Higher deductibles lower your monthly premiums since you pay more out-of-pocket before insurance coverage begins. This strategy works best when you can comfortably handle the increased financial responsibility for smaller claims.
Many insurers charge processing fees for monthly payments that can add to your total cost. Paying upfront eliminates these fees and sometimes earns additional discounts from carriers.
Avoid the set-it-and-forget-it approach after finding affordable rates. As you add employees or expand services, your coverage needs change too. Check your policy each year to drop coverage you've outgrown and adjust limits that no longer match your business size and operations.
Excavation business insurance costs range from $93 to $820 monthly, with your location, claims history and business size driving your actual premium. Getting quotes from multiple insurers, bundling your policies, choosing higher deductibles and paying annually instead of monthly helps you find more affordable rates.
Excavation business owners commonly ask about insurance costs. We answered the most frequent questions below:
Professional liability (E&O) is the cheapest at $68 monthly, but it covers only errors and omissions claims. Most excavation businesses need general liability coverage ($468 monthly) since it protects against third-party injuries and property damage during operations.
You'll pay more in these states. General liability in California runs $521 monthly (versus $468 national average), and BOP costs $770 monthly (versus $692 average). New York is similar at $544 and $793, respectively.
Bundling your excavation business insurance delivers greater savings than purchasing individual policies. Insurance companies provide discounts when you package general liability, commercial auto coverage and commercial property insurance together with a single provider.
High-risk work environments, costly heavy machinery, previous claims history, larger workforce sizes, poor credit ratings and operating in hazardous locations increase premiums.
Higher deductibles reduce monthly premiums, though you'll pay more upfront during claims. Consider your available cash and expected claim frequency when deciding.
Workers' compensation costs for excavation businesses vary by state, spanning from $93 monthly in Maine to $124 monthly in Pennsylvania for coverage.
Yes, BOP insurance is worth it for excavation companies. BOP costs $692 monthly and bundles general liability, commercial property and business interruption coverage. This bundled approach saves money compared to purchasing separate policies while offering greater convenience for excavation businesses.
Shop annually when your policy renews. Compare quotes from three or more insurers to find savings, especially after adding employees or expanding services.
We collected excavation business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:
We used a typical small excavation business profile requiring comprehensive coverage. We chose companies offering broad national coverage and online quote capabilities, prioritizing insurers that serve the excavation industry.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
