The term Excavating Contractor is a big, important term. The company deals with big jobs, big equipment, and the potential for just as big a mistake or accident as the giant companies. However, many excavating contractors are what you might consider a ‘one man band.’ This does not mean that one man does all the work – far from it! The small business owner will find a temporary staff of talented workers, probably leases all the equipment needed for a specific job and maybe even outsources all human resource functions. He may be a sole proprietor or LLC.
Just because you run a small business does not mean you do not need the same types and limits of insurance as the giants. This new program has a specialized plan just for this personal called the Small Contractor Program. If you are a member of PALICA, you will see a link to the program on their website.
Our new small contractor program is specifically designed for contractors who want broad liability coverage at a competitive price. It also offers important optional coverages to meet the unique needs of the excavating contractor.
Every business owner knows he needs general liability insurance. All contractors and property owners will want proof of insurance prior to the beginning of any excavating. In addition to general liability the contractor can have a Care Custody and Control Property Damage addition written into the policy. This added protection protects against damage to property in your possession for which you are legally liable. Claims are covered and are paid under this clause.
A Contractor’s Property Plus addition is something to really consider. It provides increased coverage for fire department service charge, pollution cleanup, newly acquired property, valuable papers, signs, outdoor property, accounts receivable, fire extinguisher recharge, data processing, and lock replacement.
One of the most valuable customized coverages for the small contractor is Equipment Breakdown coverage. This is not an insurance policy like auto insurance that covers accidents. You can enhance your policy to cover the cost to repair or replace mechanical, electrical or pressure systems that suffer a breakdown. Some costs your business may accrue due to a piece of equipment breaking down are also covered. These costs include coverage for business income, data restoration, service interruption, demolition and increased costs of construction, refrigerant contamination and perishable goods.
If the small contractor does not use his own vehicle in the day-to-day operation of the company, he can get coverage for Hired and Non-Owned Vehicles. This will cover any borrowed vehicles and even those that have been hired.
PALICA assists members with important information so that the small business owner can make an educated decision. Membership is not exclusive to the large companies only. Excavating contractors have three levels of membership in Pennsylvania and each has its own yearly dues. There is an Active Contractor Member with membership dates of November 1 through October 31 of each year. There is a less costly membership for a Company Associate Member. This is reserved for those who sell materials, services and equipment to contract members. And there is also a Supporting Member for those who are interested in the field. This membership has no voting privileges.