Excavator Insurance: Why It’s a Must-Have for Your Business
by Soumava Goswami Insurance 21 February 2025
The Australian construction equipment market is showing a lot of promise. With an expected CAGR of 4.62%, the market is about to reach 33,077 units in 2029.1
Further, the earthmoving segment holds the largest market share, and excavators are the key players. However, with an increased demand for construction equipment and excavators, it is crucial more than ever to protect your excavators.
Moreover, with the construction insurance market getting stabilized and growing at a steady pace, it is the right time to get excavation insurance to shield the damage, theft, or breakdown of your heavy-duty earthmoving vehicle.
In addition, excavation insurance is slowly becoming an integral part of financial planning and wealth management for construction and heavy equipment contractors.
Therefore, at Real Wealth Business, we decided to talk about excavator insurance in detail, with a special focus on Australia. Also, in this process, we have got Insure Group as our expertise partner.
Why Excavator Insurance Matters In Australia
If you have been following the Australian budget since 2022, you will know that the government is taking a lot of initiatives in infrastructure development. Some of these important infrastructure developments include the Macquarie Point in Hobart, the expansion of the Central Queensland University Campus, etc.
Furthermore, the investment in housing, warehouse building, and public infrastructure development is rising in Australia. So, with construction and development projects in full swing, there will be an increased demand for earthmoving equipment, including excavators.
- So, in the Australian market, excavators are a significant investment. However, you will need to pay around $100-200k to buy an excavator. The heavy price tag demands that you get a proper excavator insurance policy from reliable services like InsureGroup to cover the damage or theft expenses.
- Furthermore, many job sites or construction authorities will check the proof of insurance when you want to give your excavator for rent. Also, sometimes, the construction work will not begin if you are unable to produce the insurance proof. So, why lose valuable contracts when all you need is an excavator insurance policy?
- Moreover, if the excavator is stolen or damaged, the production at a construction site will come to a standstill. So, you need to repair the equipment or get a new one at the earliest possible.
In such cases, your excavator policy ensures that you do not need to bear the cost of repair by buying a new excavator from your pocket.
- In addition, if any casualty happens involving your excavator and you don’t have excavator or earthmoving insurance, you will incur potential financial losses, penalties, and liabilities.
What Does Excavator Insurance Cover?
You can expect comprehensive coverage with excavator insurance. The insurer will assess the unique risks associated with the operation of earth-moving equipment like excavators.
Nevertheless, with an excavator insurance policy in Australia, you can expect protection and coverage in the following areas.
- Damage And Theft Protection
The black market in Australia is infamous for the sale of stolen machines. The trafficking of heavy machinery to South America and South Africa is common. Moreover, excavators, especially mini excavators are among the most stolen construction machines.
So, unfortunately, the excavators are always a target for theft, especially when at work on remote or unsecured sites. An excavation insurance will cover the cost of buying a new excavator if your excavator is stolen.
Furthermore, accidents, weather-related problems, and vandalism can cause damage to excavators. The insurance will cover the repair and replacement costs.
- Public Liability Cover
If your excavator causes property damage or injures someone, public liability cover protects you from potentially costly legal claims.
This coverage is crucial for any business working on third-party sites or public areas.
- On-Site And Transit Coverage
Whether your excavator is at a job site or being transported between locations, insurance ensures you’re covered.
Damage during loading, unloading, or transit is common. So, having this protection can save you from unexpected expenses.
- Business Interruption Support
If your excavator is out of commission due to an insured event, some policies offer business interruption cover.
This helps compensate for lost income while repairs or replacements are arranged, ensuring your cash flow isn’t heavily impacted.
Factors To Consider When Choosing An Excavation Insurance Policy
Not all excavator insurance policies are created equal. To find the right one, consider these important factors.
- Value Of Your Equipment
Start by knowing the current market value of your excavator. Insuring it for the right amount ensures you’ll be adequately covered without paying more than necessary.
- Scope Of Coverage
Make sure the policy covers both on-site and off-site risks, including transit. Consider additional cover options like hiring equipment costs if your excavator is out of action.
- Excess And Premiums
Higher excess often means lower premiums. However, be careful not to choose a deductible that’s too high to afford in case of a claim. Balance affordability with practical coverage.
- Exclusions And Limitations
Read the fine print, as some policies exclude certain damages or do not cover damage to older machinery. Knowing these details upfront prevents surprises when you need to make a claim.
- Claims Process
A quick and straightforward claims process is essential. Look for insurers known for efficient service. So, you’re not left waiting during critical downtime.
How To Lower Your Excavation Insurance Premiums Without Sacrificing Coverage
You cannot skimp on your insurance coverage in exchange for paying lower premiums. So, here are some practical tips that have worked for all the customers of Insurance Group.
- Maintain Your Equipment
If you are particular about the regular maintenance of your machinery, it will suffer fewer breakdowns or damage, and it can help reduce premiums.
Regular servicing and inspections demonstrate responsible ownership.
- Improve Site Security
Installing GPS trackers, securing job sites, and using locked storage areas can deter theft and lower insurance costs.
- Bundle Policies
You can bundle your excavator insurance if you have other equipment or business insurance needs. Many insurers offer discounts for combined policies.
- Increase Your Excess (With Caution)
Opting for a higher excess can reduce premiums, but make sure it’s still affordable in case you need to claim.
Common Mistakes To Avoid While Choosing An Excavation Insurance In Australia
Are you underinsuring your excavator to save on premiums? You have just made the biggest and most common mistake in choosing a policy.
If you are underinsuring your equipment, it will lead to inadequate payouts when you need them the most.
Furthermore, you cannot ignore the policy exclusions. You need to have a thorough idea about the areas that are not covered in your policy or are denied claims.
Moreover, you cannot delay upgrading or updating your insurance policy when you buy a new excavator or change the operations of the existing equipment. If you don’t update your policy, the current insurance can be inadequate or leave you exposed in moments of need.
- Research and Markets – Headquartered in Dublin, Ireland, Research and Markets is the largest market research store in the world. It caters to 450+ of the Fortune 500 clients. ↩︎
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