Dewatering contractors 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.
Dewatering contractors remove groundwater on a construction site to allow excavations to be carried out in workable, safe, and dry conditions. Done well, dewatering allows a construction project to continue safely and on time. If something goes wrong, a failed dewatering effort can destabilize the excavation and result in construction delays, cost overruns, and structure instability. If you’re a dewatering contractor who is responsible for these kinds of problems on a construction site, you can expect lawsuits to follow.
You've also got a variety of other potential losses to protect against. But with business insurance designed for dewatering contractors, you can focus on what’s important.
A local independent insurance agent can help you get the tailored dewatering contractor insurance you need.
Why Do You Need Dewatering Contractor Insurance?
Dewatering, also referred to as groundwater control, is a process used to remove and control groundwater in and around an excavation site. Dewatering is important for many reasons, including reducing the risk of flooding, pipe failure, and erosion. It also improves stability around an excavation site.
But dewatering is not without dangers to your business, everyone on the construction site, neighboring properties, and the project’s overall success. Just a few of the complications of dewatering include:
- Contamination of groundwater
- Damage to the structural integrity of nearby buildings and structures
- Adverse affects on nearby rivers, lakes, and springs
Ultimately, a lot can go wrong during the dewatering process. And most accidents won’t be minor. In fact, major disasters can happen and lead to millions of dollars in property damage, serious injuries, and even deaths.
In the course of your work, you can cause damage to other properties, encounter serious worker injuries, and damage third party property or cause injuries to bystanders or other individuals on the jobsite.
Your valuable property (tools, equipment, escalator parts, etc.) is always at risk as well.
If you want to stay in business after a lawsuit or a significant property loss, you’ve got to have the funds to pay for medical expenses, attorney fees, and repairing or replacing damaged property. While your dewatering contractor insurance can’t prevent accidents and property losses from happening, it can protect you after a loss and help you survive for the long term.
What Does Dewatering Contractor Insurance Cover?
The first major building block of dewatering contractor insurance is commercial general liability (CGL) insurance. It provides coverage for many of the liability exposures you face. It pays for medical expenses and property damage for third-party injuries and property damage caused by you or your employees.
CGL 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. Completed operations insurance covers a contractor's liability for property damage or injuries to a third party once contracted operations cease (e.g., injuries related to poor or faulty installation, collapse, etc.). Contractors and manufacturers typically purchase additional or separate policies in amounts that have higher limits than what is provided in the CGL policy.
Products-completed operations insurance helps dewatering contractors settle claims while maintaining their financial stability. It can protect against breach of contract and negligence claims, and ensures reasonable compensation for damages or injuries resulting from your work or your products. It also pays for your legal fees and financial settlements to the injured parties.
You’ll likely need proof of CGL coverage in order to be licensed by your state and in order to submit bids and be chosen for work on any projects.
What Other Insurance Policies Do Dewatering Contractors Need?
Dewatering contractors need a variety of other insurance policies to cover all of their unique risks.
- Worker's compensation insurance: Protects your employees if they are injured on the job or if they develop a work-related illness. Worker's compensation insurance will help pay the medical expenses of an injured worker, as well as any income that the employee loses if he or she cannot immediately return to work after the injury.
- Equipment physical damage coverage: The heavy equipment that you use in your dewatering jobs is expensive. If your heavy equipment is damaged, it costs a lot to repair or replace it. Equipment physical damage coverage covers the value of the equipment when it is damaged.
- Commercial auto insurance: 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.
- Excess liability insurance: Financial payouts for lawsuits often reach well over the $1 million limit on a typical CGL 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 (CGL, commercial auto) at a more affordable cost than increasing the limits of several individual policies.
- Commercial property insurance: 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.
- Business interruption insurance: 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.).
- Employment practices liability insurance: Covers lawsuits related to discriminatory employment practices.
- Environmental liability insurance: Covers a variety of pollution and environmental damage 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 Is Inland Marine Coverage?
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.
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 Dewatering Contractor Insurance Cost?
Dewatering contractor insurance costs will vary depending on the size of your business, the number of employees you have, and how much business property (buildings, tools, and equipment) you have. Because of the high-risk nature of your work, dewatering contractor insurance may be more expensive (and more difficult to get) than other types of contractor insurance.
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 dewatering contractors 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 dewatering contractor 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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