Excavation business insurance costs vary significantly based on coverage type, helping you plan your budget effectively. MoneyGeek's analysis shows monthly premiums range from $68 for professional liability coverage to $692 for a business owner's policy.
Updated: August 20, 2025
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Key Takeaways
Excavation business insurance costs range from $68 to $692 monthly, with professional liability offering the most affordable coverage and BOP packages commanding higher premiums.
Your excavation insurance premiums depend on location, claims history, property types serviced and employee count.
Shop multiple insurers, bundle policies, increase deductibles and pay annually to find affordable excavation business insurance costs.
Average Excavation Business Insurance Cost Overall
| BOP | $692 |
| General Liability | $468 |
| Professional Liability (E&O) | $68 |
| Workers' Comp | $107 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Excavation Business Insurance Cost for General Liability Coverage by State
Your excavation business insurance costs for general liability coverage depend on location. Maine offers the most savings at $405 monthly (versus the $469 national average), while New York costs $544 monthly.
| Alabama | $456 |
| Alaska | $428 |
| Arizona | $444 |
| Arkansas | $449 |
| California | $521 |
| Colorado | $464 |
| Connecticut | $508 |
| Delaware | $500 |
| Florida | $507 |
| Georgia | $475 |
| Hawaii | $500 |
| Idaho | $444 |
| Illinois | $514 |
| Indiana | $456 |
| Iowa | $445 |
| Kansas | $454 |
| Kentucky | $435 |
| Louisiana | $541 |
| Maine | $405 |
| Maryland | $446 |
| Massachusetts | $491 |
| Michigan | $443 |
| Minnesota | $439 |
| Mississippi | $470 |
| Missouri | $460 |
| Montana | $466 |
| Nebraska | $443 |
| Nevada | $532 |
| New Hampshire | $465 |
| New Jersey | $530 |
| New Mexico | $471 |
| New York | $544 |
| North Carolina | $405 |
| North Dakota | $407 |
| Ohio | $434 |
| Oklahoma | $448 |
| Oregon | $435 |
| Pennsylvania | $540 |
| Rhode Island | $514 |
| South Carolina | $482 |
| South Dakota | $437 |
| Tennessee | $456 |
| Texas | $472 |
| Utah | $446 |
| Vermont | $449 |
| Virginia | $426 |
| Washington | $532 |
| West Virginia | $491 |
| Wisconsin | $459 |
| Wyoming | $433 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Excavation Business Insurance Cost for Workers’ Compensation Coverage by State
Your Excavation business's cost for workers' compensation varies by state. Maine offers the lowest rates at $93 monthly and Pennsylvania the highest at $124 monthly. Our analysis reveals how state regulations and claim histories create these differences.
| 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Workers' compensation requirements vary by state and are mandated by state regulations. Survey results reflect limited sample data and may not represent all available rates in your area.
Excavation Business Insurance Cost for Professional Liability Coverage by State
Like other insurance types, your cost for professional liability varies by state for excavation businesses. The national average is $68 monthly, with North Dakota offering the lowest rates at $58 for E&O insurance, while New York charges the highest 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Excavation Business Insurance Cost for BOP Coverage by State
Business owner's policy rates show substantial variation in excavation business insurance costs nationwide. Monthly premiums range from $596 in Maine to $820 in Louisiana for comparable coverage.
| 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP coverage. Survey results reflect limited sample data and may not represent all available rates in your area.
Factors Affecting Excavation Business Insurance Cost
Your excavation business insurance costs are determined by several factors that insurance companies assess when calculating premiums. Understanding these variables helps with budget planning. We break down these cost factors below.
Geographic location
Your business location affects workers' compensation rates due to local regulations and claim frequencies. Operating in areas with unstable soil conditions or frequent severe weather increases your risk profile, and state differences in underground utility regulations create premium variations.
Safety record and claims history
Previous claims impact future premiums, sometimes for three to five years. A single underground utility strike or equipment accident can increase your general liability rates at renewal.
Types of properties serviced
Commercial and industrial sites carry different liability risks than residential projects. Working near critical infrastructure or on contaminated sites increases insurance costs due to higher potential damages and environmental liability exposure.
Employee count and payroll
Insurers calculate workers' comp premiums based on your total payroll and job classifications. Adding equipment operators and field workers increases your payroll costs, since insurers calculate your rates per dollar of wages paid.
Services offered
Different excavation services carry varying risk levels and insurance costs. Deep excavation work costs more to insure than surface grading, while demolition services face higher premiums than basic site preparation.
Business size and revenue
Higher annual revenue typically means higher premiums since insurers view larger operations as having greater exposure to claims. A small excavation company earning $200,000 annually pays less than a large operation with $2 million in revenue and multiple project sites.
Coverage limits
Higher coverage limits offer better protection but cost more monthly. Choosing between different coverage amounts directly affects your premium, with higher limits increasing costs proportionally.
Equipment and Vehicle Values
Heavy equipment like excavators, bulldozers and dump trucks require substantial coverage limits, increasing your premiums. A company with a fleet of new machinery worth millions will pay more for equipment coverage than one using older, less valuable equipment.
Credit score and financial stability
In most states, insurers can consider your business credit score when setting rates. A strong credit score can reduce premiums, while poor credit often increases costs substantially.
How to Get Cheap Excavation Business Insurance
Smart shopping and risk management strategies can lower your excavation business insurance costs significantly. We've identified proven methods below to help reduce your premiums now and build a stronger insurance profile over time.
- 1
Choose the right coverage types for your business
Understanding what types of business insurance your excavation company needs prevents overpaying for unnecessary coverage. General liability protects against third-party injuries and property damage, while workers' compensation covers employee injuries. Equipment coverage is essential for protecting expensive machinery.
- 2
Shop multiple insurance companies
Insurance rates can vary significantly between providers for identical coverage. Request quotes from at least three companies to find the best rates. Consider working with an independent agent who can compare multiple carriers for you.
- 3
Bundle your coverage types
Insurance companies offer substantial discounts when you bundle multiple policies together. Combining general liability, equipment coverage and commercial auto with one carrier typically costs less than separate policies from different insurers.
- 4
Increase your deductibles
Choosing higher deductibles reduces your monthly premium costs. This means you'll pay more out-of-pocket for small claims, but save money on regular premium payments.
- 5
Pay annually instead of monthly
Most insurance companies charge extra processing fees for monthly payments. Paying your full premium annually eliminates these fees and often qualifies you for additional discounts.
- 6
Review and adjust your coverage annually
Your insurance needs change as your excavation business grows. Review your policy yearly to ensure coverage limits match your current operations and equipment values. Remove unnecessary coverage and adjust limits based on your business size.
Insurance for Excavation Business Cost: Bottom Line
Excavation business insurance costs range from $68 to $692 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 Insurance Cost: FAQ
Our research team gathered answers to the most common questions about excavation business insurance costs to help you understand coverage expenses.
What is the cheapest type of excavation business insurance?
Workers' compensation costs $107 monthly and is the most affordable option, but it only covers employee injuries. Most excavation businesses need the more costly general liability insurance ($468 monthly) to protect against customer accidents and property damage.
How much can I save by bundling my excavation business insurance policies?
Bundling policies through a BOP can save you by combining essential coverages like general liability and property insurance into one cost-effective package.
What factors make my excavation business insurance more expensive?
Factors like the equipment and vehicles used in the business, the number of employees, claims history and safety record can all raise the cost of excavation business insurance.
Should I choose a $500 or $2,500 deductible for my excavation business insurance?
Higher deductibles lower your monthly insurance costs, but require more cash when filing claims. Consider your business's cash reserves and claim likelihood when choosing your deductible.
How much does workers' compensation cost for excavation businesses by state?
Workers' compensation rates for excavation businesses vary by state, ranging from $93 monthly in North Carolina to $124 monthly in Pennsylvania, reflecting different regional risk factors and requirements.
Is business owner's policy (BOP) worth the extra cost for excavation companies?
A BOP costs around $692 monthly and bundles multiple coverages into one policy. This comprehensive package delivers better value than purchasing individual policies for excavation companies.
How often should I shop around for excavation business insurance quotes?
Review your excavation business insurance annually at renewal. Compare at least three carriers to find better rates, particularly if your business has grown or changed.
How We Determined Excavation Business Insurance Costs
We collected excavation business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:
- Two employees (three people total, including the owner)
- $150,000 annual payroll
- $300,000 annual revenue
- Already insured status
- $1 million per occurrence and $2 million total per year for all coverage except BOP, which includes the same limits plus $5,000 business property coverage
This profile represents small excavation businesses requiring comprehensive insurance coverage in most states. We chose companies offering broad national coverage and online quote capabilities, focusing on insurers that actively 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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.