Land Clearing Contractor Insurance

A Guide to Land Clearing Contractor Insurance

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Land clearing contractors face a wide range of business risks, from employee injuries to causing property damage or injuries to third parties. What’s more, you risk loss to your property and equipment while your employees are out in the field.

Land clearing contractor insurance is critical for protecting your business from financial losses. An independent insurance agent can help you assess the risks involved in your business, and help you get the business insurance that’s right for you and your budget.

Why Do You Need Land Clearing Contractor Insurance?

Land clearing is often the first phase of any major construction project. A land clearing contractor may clear away vegetation and large rocks, and grade the property to help control drainage and erosion. Land clearing contractors may also build access roads to the property, connect the site to utilities, excavate a foundation, and even demolish any existing buildings on the site.

Some of the risks that you face as a land clearing contractor include:

  • Stolen tools and equipment
  • Liability claims arising from injuries or property damage that occur at a job site
  • Failures involving any excavation that you do, causing injuries or property damage
  • Causing damage to underground utility lines
  • Fire, severe weather, or smoke that damages your office, warehouse, or storefront
  • Causing damage to another contractor’s work
  • Worker injuries or illnesses

For these and many other reasons, you need land clearing contractor insurance to protect your livelihood at times when things go wrong.

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What Does Land Clearing Contractor Liability Insurance Cover?

Several different types of business liability insurance policies are necessary to help cover your risks.

  • Commercial general liability (CGL) insurance protects you from the costs of liability claims and lawsuits. It can help you pay for property damage, medical bills, and attorney fees, court costs, settlements, and judgments. Most states require contractors to have a valid contractors liability insurance policy in place to get licensed, to bid on jobs, and to conduct any kind of construction work.
  • Commercial auto insurance covers your vehicles and drivers in the event of an accident or other types of vehicle damage.
  • Commercial umbrella insurance can cover you for claims that exceed the limits of your other liability policies (general liability and commercial auto).

An independent insurance agent can help you determine the types of liability insurance that you need.

What Does Property Insurance Cover?

Commercial property insurance covers your office space, shop, warehouse, or other buildings and their contents against losses due to fire, theft, vandalism, wind, hail, and other incidents that can occur.

In addition, you’ll need the following to help you pay expenses if you have a temporary disruption following a covered 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.).
  • Extra expense coverage pays for non-ordinary expenses (e.g., buying or leasing equipment for a temporary site, paying overtime, hiring temp workers) that are above and beyond your normal operating costs if you can’t operate out of your usual location or if your equipment is damaged by a covered event.

These policies can be customized for your unique needs.

How Can You Cover Your Tools and Equipment at a Job Site?

Land clearing contractors are likely to need to cover tools and equipment when they are away from the primary business premises. You may need the following to supplement your commercial property insurance:

  • 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, such as in your work trucks. It is especially important if you store your tools and equipment in your truck or another vehicle.
  • An installation floater protects materials that are left at a job site to be installed but get damaged before you can do it.
  • A tools and equipment floater can normally be added to your property damage coverage. It covers any leased or owned specialized tools and equipment for your land clearing business 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.), shovels, and wheelbarrows. It can also cover equipment like compressors, generators, excavators, backhoes, and others that you use in your operations.

Talk to an independent insurance agent to determine whether you need these types of coverage.

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What Does Workers’ Compensation Insurance Cover?

Your employees are exposed to a wide variety of injuries, including falls, heavy lifting injuries, crushed fingers and limbs, repetitive motion injuries, and more. These injuries can be debilitating, costly, and lead to decreased productivity and time away from work.

Workers’ compensation insurance is required for most employers. It provides coverage for medical bills and lost wages when accidents or illnesses happen in the workplace.

Workers’ compensation insurance provides benefits to injured workers regardless of who is at fault for an injury.

Do Land Clearing Contractors Need Construction Bonds?

Construction bonds, or surety bonds, are also essential protections for contractors and those with whom they do business. Bonds are essential to finding, securing, and performing work on all kinds of construction projects, and are often required by the project owner in order for your bid to be accepted. They serve as a guarantee for various aspects of the bidding process and construction contract.

There are several different types of construction bonds or contractor bonds, and each guarantees a different aspect of the bidding process and the contract.

How Much Does Land Clearing Contractor Insurance Cost?

Insurance for land clearing contractors can range from several hundreds of dollars per month to thousands. It depends on the size of your business, the number of employees you have, and the value of your commercial property.

Other factors come into play, as well. The types and amounts of coverage you need to adequately cover your risks will dictate the cost of your land clearing contractor insurance.

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Benefits of an Independent Agent

An independent insurance agent who has experience working with land clearing contractors and other similar businesses can help you decide the types and amounts of coverage that you need for your business. The choices you make will determine your cost of coverage.

Independent agents can work with numerous reputable insurance companies that specialize in your type of business. Together you can review a variety of proposals and choose the best mix of coverage that meets your needs and budget.

What’s more, your agent will 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.

Find and Compare Quotes for Land Clearing Contractor Insurance

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.

Your agent will work with you free of charge to get quotes from multiple insurance companies so you can make the best choice.

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TrustedChoice.com Article | Reviewed by Paul Martin

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