Broker-arranged
Excavator insurance
An excavator is usually the most valuable thing an earthmoving business owns, and digging is where its biggest liability sits: a cut gas main or cable can cost far more than the machine. Here are the covers excavator owners and earthmoving contractors hold, the digging rules that matter, and how a licensed broker arranges it.
- The machine and the liability together
- Hired-out plant and operators explained
- Arranged by a licensed broker
What insurance does an excavator need?
Excavator owners usually hold two covers. Plant and equipment insurance covers the machine itself against accidental damage, fire, theft and overturning, on site and in transit. Public liability covers injury and property damage caused by the work, including damage to underground services such as gas, water, power and telecommunications. If you employ operators, workers compensation is compulsory, under rules that vary by state.
If the excavator is financed, the lender usually requires the machine to be insured with its interest noted. If you hire it out, tell the broker whether it goes with or without an operator, because the liability is different.
The covers earthmoving contractors hold
| Cover | What it’s for |
|---|---|
| Plant and equipment | The machine: accidental damage, fire, theft and overturning, plus attachments |
| Public liability | Injury and property damage from the work, including damage to underground services |
| Workers compensation | Compulsory once you employ operators or labourers |
| Commercial vehicle | The ute and float trailer that move the machine |
| Contract works | If you’re building as well as digging |
Digging rules that affect your cover
Underground services are the claim insurers worry about most. Safe Work Australia’s model Code of Practice for excavation work covers planning the work, including locating essential services before you dig. Before You Dig Australia runs the free national referral service for plans of underground assets, and says NSW is the only state where using it before excavation is a legal requirement.
Insurers ask whether you check for services before every job and keep the plans. Doing it, and being able to show you did, makes the difference at claim time. Ask the broker how the policy treats damage to underground services, because some policies set a higher excess or a sub-limit for it.
What excavator insurance won’t cover
These need other cover, or aren’t insurable:
- Wear and tear and mechanical breakdown.Machinery breakdown is usually a separate cover.
- Damage while the machine is used outside its rated capacity.
- An unlicensed or untrained operator.Check the policy’s operator conditions.
- Hired-out plant,unless the policy says it covers it.
How to get excavator cover through us
Excavator insurance questions
Is excavator insurance compulsory?
Not by law, but lenders usually require it on a financed machine, and head contractors require public liability before you start on site. Workers compensation is compulsory once you employ staff.
Does public liability cover hitting an underground service?
Usually, but policies differ on excesses and sub-limits for underground services. Ask the broker to check the wording, and check for services before every job.
Do I have to use Before You Dig Australia?
In NSW it’s a legal requirement before excavation. Elsewhere it’s strongly recommended, and insurers commonly ask whether you do it.
Is my excavator covered when I hire it out?
Only if the policy covers hired-out plant. Tell the broker whether you hire it with an operator or dry, because the liability is different.
Why is excavator insurance arranged by a broker?
Insurers rate each machine, its use and its operators, so a licensed broker arranges quotes rather than an online form.
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Earthmoving