How much does excavator insurance cost?

How much does excavator insurance cost?

If you own a construction business that involves earthmoving and excavation work, protecting your equipment and employees should be your top priority. Excavators and other earthmoving equipment are expensive investments, and if accidents happen, they can result in costly damage and potential legal liabilities. In this blog post, we will discuss how this insurance works, why it is important, and what factors influence excavator insurance cost.

Understanding How Much Excavator Insurance Costs

Excavator insurance is a type of commercial insurance that provides coverage for construction equipment, including excavators, bulldozers, and other earthmoving machinery. This type of insurance typically includes various forms of liability insurance, property damage coverage, and sometimes even worker’s compensation insurance. 

The coverage usually varies depending on the particular policy and the needs of the business owner, but it is designed to protect your business from any unforeseen accidents, legal liabilities, or equipment repairs that may arise during earthmoving operations. Common risks and liabilities covered by excavator insurance include damage caused by natural disasters, collisions, theft, and employee injuries.

It is important to have coverage because accidents can happen, and the cost of these incidents can be extremely high. This insurance can give you peace of mind knowing that your business is protected from potential legal and financial risks.

Excavator destroying an old swimming pool

Factors Influencing The Cost

The cost of your policy will vary depending on different factors. Here are some of the most important factors that can influence the cost of your policy:

  1. Size and capacity of the excavator: Bigger excavators with more capacity may require higher coverage limits, which can increase the overall cost of insurance. This is why it’s important to evaluate the size and capacity of your excavator before obtaining insurance.
  2. Age and condition of the equipment: Older or poorly maintained equipment may pose a higher risk for accidents, which can lead to higher insurance premiums. If your equipment is in good condition, you may be able to get a lower rate.
  3. Location and terrain of the construction site: Construction sites in areas with a higher risk of natural disasters or accidents may result in higher insurance costs. To reduce the cost, you should choose a site with lower risk factors.
  4. Operator experience and safety record: Insurance companies usually assess the operator’s experience and safety record to determine the level of risk involved in the operation, which can affect the cost of insurance. To get a lower rate, you should make sure the operator has adequate experience and a good safety record.
  5. Claims history and loss ratio of the insured: A business that has a history of filing claims or a high loss ratio may result in a higher cost of insurance. While it’s impossible to completely avoid claims, making sure your business has a good track record can help keep insurance costs lower.
  6. Additional coverage options and deductibles: Additional coverage options or lower deductibles may increase the cost of insurance. If you want to keep the cost down, you should only choose coverage options that are necessary for your business.

Do Excavation Businesses Need Earthmoving Insurance?

It is especially important for businesses engaged in earthmoving operations to have specialised insurance. This type of insurance is specialised in providing coverage for various equipment such as excavators, bulldozers, and backhoes. 

This provides coverage for various types of risks and liabilities specific to earthmoving operations, including damage to third-party property, environmental damage, and debris removal. Having a specialised policy can provide you with peace of mind knowing that your business is adequately protected from potential risks.

Obtaining Earthmoving Insurance Quotes

When looking for earthmoving insurance, it is important to compare policy options and prices from different insurance providers. Here are some things to keep in mind when requesting quotes:

  1. Similarities and differences between excavator and earthmoving insurance: It is important to understand what is included in each type of policy to ensure you have adequate coverage for your business needs. The main differences between these two policies are the coverage limits, exclusions, and additional options that can be added to the policy.
  2. Factors affecting the cost: The size, capacity, age, condition, location, and operator experience of the equipment can all affect the cost of the policy. These factors should be taken into consideration when obtaining quotes to ensure you get the best coverage at the most competitive price.
  3. Requesting quotes from insurance providers specialised in earthmoving: Work with specialists in the industry who have experience providing coverage for earthmoving operations. There are a number of insurance companies that specialise in this type of insurance, so shop around and request quotes to find the best deal.
  4. Comparing coverage options and exclusions: Review the finer details of each policy to ensure that you have the coverage you need and that there are no hidden exclusions that might leave you unprotected in case of an accident. While it is important to keep costs down, it is also essential that you have adequate coverage for any potential risks. So always make sure you are adequately protected before signing up for a policy.


In conclusion, if you’re engaged in earthmoving operations, excavator and earthmoving insurance are essential to protect your business and equipment from any unforeseen risks and liabilities. Ensure that you consider all factors that might influence the cost of insurance, so you have the coverage you need at a price you can afford. If you have questions or need guidance in selecting the right coverage for your business, consult with business insurance brokers that specialise in earthmoving and excavation.

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Daniel Ufer

Daniel is a business insurance broker that specialises in providing tailored advice, competitive premium and risk mitigation tactics to his clients. Daniel has received multiple awards that include: ADVISR Insurance Broker of the Year - Peoples Choice (2nd), ADVISR QLD Insurance Broker of the Year (Finalist), ADVISR Thought Leader (Finalist), APAC Most Dedicated Insurance Broker

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