Excavation and grading come with serious risk. We’ll help you manage it. With access to 60+ top-rated insurance companies, Pepper, Johnstone & Company builds custom insurance programs for excavation and grading contractors, covering the risks beneath every construction project.
Insurance for Excavation and Grading Contractors
from Pepper, Johnstone & Company
Running an excavation business comes with more than heavy equipment—it comes with serious exposure. Anytime you’re clearing land, trenching utilities, or prepping for a foundation, your work carries major risk from the first dig.
Before you break ground, make sure your insurance coverage is up to the task.
At Pepper, Johnstone & Company, we build excavation and grading insurance programs designed for the unique hazards of earthwork. Whether you operate a fleet of machines or subcontract on larger builds, we’ll help you protect your people, your equipment, and your business.
Why Insurance Matters for Excavation Contractors
Excavation is one of the highest-risk trades in the construction industry. Underground hazards, unstable terrain, buried utilities, and heavy equipment can all lead to serious accidents. Without proper insurance coverage, a single incident could result in:
- Major financial losses
- Damage to client property or infrastructure
- Bodily injury to workers or bystanders
- Lawsuits with costly legal fees
- Equipment theft or breakdowns that halt progress
- Long-term business interruptions
The right excavation contractor insurance gives you a strong foundation for managing risk and building a legacy of success.
Essential Coverage Options for Excavation and Grading Businesses
Most contractors in the construction industry need a well-rounded package of policies, including:
General Liability Insurance
Protects your business from third-party injury or property damage claims, such as a trench collapse or a struck utility line.
Workers’ Compensation Insurance
Covers medical care and lost wages for employees injured while operating equipment or working in hazardous areas.
Commercial Property Insurance
Protects your headquarters, office trailers, and any tools or assets stored at a fixed location.
Commercial Umbrella Insurance
Adds an extra layer of protection when a claim exceeds the limits of your base policies.
Commercial Auto Insurance
Covers trucks, dump trailers, and equipment haulers used for transporting crews or machines to the job site.
Employment Practices Liability Insurance (EPLI)
Protects against claims of discrimination, harassment, wrongful termination, and other HR-related disputes.
Fiduciary Liability Insurance
Covers errors in managing employee benefit plans or retirement contributions.
Crime Insurance
Provides coverage in the event of employee theft or financial fraud.
Specialized Insurance Coverage for Excavation Work
Excavation and grading involve mobile machinery, underground risks, and unpredictable terrain. These specialty policies offer additional protection:
Builders’ Risk Insurance
Covers excavation work and materials during active construction, including site prep and grading before the vertical build begins.
Inland Marine Insurance
Protects expensive mobile equipment—such as excavators, skid steers, and trenchers—while in transit or stored offsite. A must-have for excavation professionals.
Surety Bonds
Often required on public or commercial projects, these provide financial assurance that your excavation business will complete the work as promised.
Protect More Than Just the Job Site
At Pepper, Johnstone & Company, we understand what it takes to keep an excavation operation moving. We go beyond basic business insurance to help you plan for:
- Delays caused by broken equipment or material theft
- Lawsuits over ground shifting, erosion, or structural failure
- Compliance with subcontractor requirements for additional insured endorsements
- Understanding the true excavation insurance cost based on your machinery and project scope
- Navigating which type of insurance applies to underground liability or specialty risks
From initial grading to final backfill, we build coverage that protects your business, so you can keep pushing forward.
Why Choose Pepper, Johnstone & Company
We’re not just another contractor insurance provider. As an independent agency, we partner with 60+ insurance companies to find the policy that fits your budget and your work style.
Whether you're a solo business owner or managing a full crew, we deliver expert advice, fast documentation, and flexible coverage built for excavation contractors.
Frequently Asked Questions About Excavation Business Insurance
What excavation & grading contractors need to know
Most excavation businesses need general liability, workers’ compensation, commercial auto, and inland marine insurance. Depending on the size and scope of your operation, we may also recommend builders’ risk, property, and umbrella coverage.
The cost of excavation and grading business insurance varies depending on your equipment, crew size, services offered, and claims history. We work with dozens of carriers to find the best rate for your needs—whether you're a small operation or bidding large-scale jobs.
It protects mobile equipment like excavators, trenchers, and attachments while they’re being transported or stored. Unlike property or auto policies, inland marine is built for job-ready machinery that moves from site to site.
It depends. While general liability insurance may cover property damage in many situations, some policies specifically exclude subsurface utility strikes unless the coverage is added by endorsement. Damage to gas lines, water mains, or electrical conduits can lead to significant repair costs, business interruption claims, or even third-party injury lawsuits.
For your financial protection, it's critical to work with an agency that understands excavation risks. At Pepper, Johnstone & Company, we’ll review your policy language, identify any exclusions, and help you add the endorsements or insurance coverage necessary to fully protect your business from the financial impact of hitting an underground utility.
Yes. Commercial auto insurance is required for any business-owned vehicle. It covers liability and physical damage related to transporting materials, tools, and machines.
Start with an advisor who knows your trade. At Pepper, Johnstone & Company, we specialize in excavation business insurance and can help you compare options, issue certificates, and adjust coverage as your projects grow.
What do people think about us?
Hear from some actual clients.
on Google
I started a company in January 2019 & the team at Pepper Johnstone helped me from the beginning. We serve mid-cap to large public companies in Alabama, Colorado and Texas. And, Bryan has been critical in helping us meet and maintain the required commercial insurance policies and coverage levels. Key reasons that I've been so pleased primarily include their high level of technical competence and timely responsiveness on new or changing insurance coverage requests. They do a great job & I can highly recommend them.
— Russ L.
on Google
We are very pleased with our services that Pepper, Johnstone and Company provide for us! Both with business and personal needs, we feel like we are receiving excellent resources. We truly would not trust anyone else for our insurance needs!
— Lauren M.
on Google
Thankful for the opportunity to work with Pepper, Johnston’s and Co. They helped us add basic insurance needs for our newly formed LLC. The responsiveness, willingness to answer numerous questions, and guide us through multiple options was greatly appreciated. I’d like to especially thank Meredith Baswell of their staff who helped us through the process. I’d recommend you seek their advice and input on commercial and personal insurance options.
— Kevin G.
on Google
This is the best insurance agency hands down. We have our home, car, and business insurance through them. Julie has always gone above and beyond to help us. We wouldn’t use anyone else.
— Laura D.
on Google
Pepper Johnstone has handled my personal and business insurance needs for years. They do good work and their staff is amazing! They are independent agents so they have access to several different lines of insurance to meet the needs of their clients. I highly recommend them.
— Jeremiah H.
on Google
Pepper, Johnstone is a very professional and responsive insurance company. They were able to assist me with a full suite insurance solution very promptly and at a great value. Most importantly, I felt completely comfortable that I was being handled by true professionals. Bryan Johnstone is great at his job and I would recommend him highly to anyone who needs insurance advice for themselves or their business.
— Troy R.
Insurance Articles
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Let’s Build Your Excavation Insurance Plan
From trenching to grading, your work carries risk. Let’s build an insurance plan that doesn’t. Call Pepper, Johnstone & Company at 866-865-3499 or request a quote online to get started.