No matter what type of business you own, having workers’ compensation insurance is a must. This policy helps cover the medical expenses of an employee if they’re sick or injured as a direct result of their job. For those working in excavation, having a policy is critical.
If you are reading this, chances are you are an excavation contractor. You know that there is a higher level of risk than other types of businesses. This makes having workers’ compensation policy even more important.
This guide breaks down everything you need to know about workers’ compensation insurance for excavation contractors, why you need it, and where to find the best policy for you!
Class Codes For Excavation Contractors
Each state legislation classifies businesses under specific class codes in order to determine their risk level and corresponding insurance rates. The class code for excavation contractors is 6217. This code encompasses the following activities:
- General excavation activities such as ditch digging, burrowing, filling, and backfilling.
- The removal of earth with shovels, trench diggers, bulldozers, and piling
- Removal of small boulders and rocks
- Excavation for swimming pools
- Excavation for construction and building foundations
- Landscape gardening
- Waterproofing operations
What isn’t covered under the class code for excavation contractors? Street and road construction, dam construction, pile driving, shaft sinking, cofferdam work, and caisson aren’t covered under this code.
Understanding your class code is key to finding the best rate for your business as an excavation contractor. Be sure to consult one of our experts to determine your business’s class codes and how you can save on workers’ compensation insurance for excavation contractors!
Do You Need Work Comp Insurance for Excavation Contractors?
Do you need work comp insurance for excavation contractors? The simple answer is, yes, you need workers’ compensation insurance for excavation contractors.
This is partially due to state regulations surrounding workers’ compensation. Most states require businesses with one or more employees to have workers’ compensation coverage. Some states like Illinois, Pennsylvania, California, and New York have severe penalties for those that don’t follow workers’ compensation laws. These include jail time, fines, and even felony charges.
Even if your state doesn’t require you to have workers’ compensation insurance, it’s still a good idea to have coverage. Without it, you could be faced with hundreds of thousands in out-of-pocket expenses.
Below are some of the reasons you need to have worker’s compensation insurance for excavation contractors!
To Help Protect Your Employees
The most significant reason you need workers’ compensation insurance for excavation contractors is to protect your employees. Excavation contractors deal with heavy machinery, equipment, trenching, and other activities that require physical exertion.
Because of the demands and risks of working as an excavation contractor, the risks for injury are high. Below are some common risks associated with excavation.
- Exposure to chemicals in soil and lack of atmospheric testing.
- Electrocution from interaction with electrical lines.
- Injury from falling rocks or soil, or falling equipment.
- Cave-ins while digging trenches and excavating are a serious hazard to those working and can result in injuries and even fatality.
Other general risks include proximity to the road and oncoming traffic, injury to the back from lifting heavy equipment or bending over, and general risks of physical exertion.
If an employee gets electrocuted due to interaction with an electrical line, they’ll require immediate medical attention, transportation to the hospital, treatment, testing, and extensive physical training for recovery.
Without workers’ compensation, your worker could be faced with hundreds of thousands in out-of-pocket fees. If they’re unable to pay, they could risk serious consequences to their financial situation.
Workers’ compensation helps cover any medical expenses for treatment, medical attention, transportation, recovery, medication, lost wages, and even emotional distress. This policy helps protect your employees and prevents them from paying exorbitant out-of-pocket costs.
Work Comp Protects Your Business
Along with protecting your employees, workers’ compensation insurance also protects your excavation business. If your employee gets injured on the job and you’re not able to pay their medical expenses, you could face lawsuits and bankruptcy.
Medical expenses and lost wages can add up fast. Don’t leave your business susceptible without workers’ compensation. Having a policy could make a big difference in the financial security and success of your company.
Which Work Comp Insurance for Excavation Contractors is Best?
When it comes to workers’ compensation, not every policy is the same. Extra work needs to be done and it can take some companies forever to give you a quote. That’s why we started Direct Work Comp. With experts in the field who can advise your business every step of the way, our team can help you streamline your workers’ compensation program for success and get you a quote in minutes.
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