Backfilling services are part of the site preparation contractors industry. This industry is made up of establishments that engage in site preparation activities, such as excavating and grading, demolition of buildings and other structures, septic system installation, and earthmoving and land clearing.
Backfilling is the process of reusing or replacing the soil that is removed during the excavation of foundations, ground bearing slabs, or other groundwork to support and strengthen a structure. The backfill is often made up of the soil that was removed during the excavation process, or it can be a mixture of soil, rocks, and stones. The type of backfill used depends on the structural requirements of the construction project. A backfilling service performs the backfilling work.
If you operate a backfilling service, you know the importance of business insurance. It secures your project contract and gives you peace of mind while you are working. With appropriate backfilling service insurance, you can protect your business from property losses and lawsuits.
A local independent insurance agent can help you get the backfilling service insurance that you need.
Why Do You Need Backfilling Service Insurance?
Backfilling involves placing soil back into a trench or a foundation after excavation and any related work has been completed. The backfilling process requires extensive skill and expert knowledge of the specifications for the project and the soil conditions. It requires the use of heavy and sometimes dangerous equipment.
Backfilling services must be aware of the unique soil conditions of every project and understand the different backfilling techniques that are conducive to different soil conditions and types of projects.
Something can go wrong at any time during the backfilling process. Underground pipelines, structures, cabling, utilities, or other buried items can be damaged. Every backfilling project must be performed with great caution to avoid costly property damage, injuries, and equipment damage.
Managing the risks associated with backfilling requires implementing best practices for safety as well as protecting your business with customized business insurance.
Having the right backfilling service insurance protects your business from catastrophic litigation costs after an accident and a large claim. A comprehensive business insurance program designed for backfilling services protects you from employee errors, public injuries, property damage, pollution claims, and more.
A local independent insurance agent can help you get the tailored insurance you need.
What Are the Key Insurance Policies for Backfilling Services?
Backfilling services need a package of tailored insurance policies, including the following.
General liability insurance: This provides coverage for many of the lawsuit exposures you face. It pays for medical expenses and property damage for third-party injuries, and property damage caused by you or your employees. This may involve displacement and settlement of existing structures, disrupting utility service to neighboring residences or businesses, foundation damage, pipe leaks, and more.
General liability policies also usually include products-completed operations liability insurance that responds if you’re sued when work that you’ve completed is faulty and causes injuries to others. Products-completed operations insurance covers a contractor's liability for property damage or injuries to a third party once contracted operations cease. Contractors and manufacturers typically purchase additional or separate policies in amounts that have higher limits than what is provided in their general liability policy.
You’ll likely need proof of general liability coverage in order to be licensed by your state and in order to submit bids and be chosen for work on any projects.
Excess liability coverage: Financial payouts for lawsuits often reach well over the $1 million limit on a typical general liability policy. Most of your customers will require you to have more coverage than that or excess liability coverage in the form of a commercial umbrella policy. Commercial umbrella insurance provides liability limits above and beyond certain other liability policies at a more affordable cost than increasing the limits of several individual policies.
Commercial auto insurance: This covers your owned vehicles and drivers in the event of an accident or other vehicle damage that occurs. Commercial auto insurance provides coverage for property damage and bodily injury liability claims, vehicle damage, and medical bills, as well as any costs related to lawsuits due to auto accidents involving your vehicles.
Worker’s compensation insurance: This protects your employees if they are injured on the job or if they develop a work-related illness. Your employees are exposed to many hazards. Worker’s compensation insurance will help pay for an injured employee’s medical care as well as any income that the employee loses if he or she cannot immediately return to work after the injury.
Commercial property insurance: This covers your buildings, work spaces, and all kinds of commercial property, including equipment, tools, office furniture, computers, and more if they’re damaged or destroyed by fire, smoke, theft, vandalism, or a weather event at your permanent premises.
Commercial property policies typically include business interruption coverage. It reimburses you for lost income and helps pay for certain ongoing expenses if you are temporarily unable to operate due to a covered loss (fire, weather, vandalism, etc.).
You’ll also need coverage for your valuable tools and equipment while they’re in transit to and from job sites, and while they’re in use or stored at a site for the duration of a job.
- Equipment physical damage coverage: The heavy equipment that you use in backfilling is expensive, and it costs a lot to repair or replace it. Equipment physical damage coverage covers the value of the equipment when it is damaged.
- Inland marine insurance: Protects your equipment, tools, portable computer equipment, and other supplies from theft, loss, or damage while they are in transit to and from worksites.
Consider adding an installation floater to your inland marine coverage, which protects materials left at a job site to be installed but are damaged before you can do it.
A tools and equipment floater can normally be added to your inland marine coverage as well. It covers any leased or owned specialized tools and equipment you use while they’re stored on the construction site. It can offer coverage for tools like hand tools, power tools, contractors’ gear (hard hats, goggles, etc.), and more. It can also cover equipment like compressors, generators, excavators, backhoes, and other equipment that you use.
What Other Insurance Policies Do Backfilling Services Need?
Backfilling services need a variety of other insurance policies to cover all of their unique risks.
- Employment practices liability insurance: Covers lawsuits related to discriminatory employment practices.
- Environmental liability insurance: Covers a variety of pollution exposures that you face.
- Contractors errors and omissions/professional liability insurance: Covers professional contractors, their partners, their employees, and the partnership or corporation for damages caused by providing or failing to provide professional services. You can be sued for providing erroneous advice or services, acts of negligence, or even omissions.
What Are Contractors Bonds and Do You Need Them?
You might need a variety of contractors bonds, or surety bonds, depending on the size and scope of the projects that you work on. Bonds are very important for contractors who work on commercial building sites. And you may be required to have certain kinds of bonds in order to secure the required licensing that you need.
Contractors bonds can be essential for finding, securing, and performing work. They are typically used to guarantee some aspect of the bidding process or building project and ensure the project owner that you are fully licensed, insured, and prepared to complete the project as promised.
Every type of bond is unique and tailored to a specific project. It’s likely that you’ll need various types of contractors bonds for most of the jobs that you do.
How Much Does Backfilling Service Insurance Cost?
Backfilling service insurance costs will vary depending on the size of your business, the number of employees you have, and how much commercial property (buildings, tools, and equipment) you have.
Insuring your business is complex. The types of coverage you need and can qualify for depends on several variables. You may need to find coverage through a specialty insurer who specializes in businesses like yours.
An independent agent who has experience working with backfilling service can help you decide the types and amounts of coverage you need for your business. The choices you make will determine your cost of coverage.
Find and Compare Quotes
An independent agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies, so you can evaluate the cost and coverage options and make the best choice.
Benefits of an Independent Agent
Our agents simplify the search process for finding the right backfilling service insurance. They’ll walk you through the handpicked policy options and explain the details.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get—but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can omit important coverage that will leave you devastated if something unexpected happens. And they can leave out cost savings opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.
TrustedChoice.com Article | Reviewed by Paul Martin
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