EARTHMOVING AND EXCAVATION INSURANCE CASE STUDY
Utility Services Contractor, $20M Liability Remarketed and Excavation Plant Insured
A utility services contractor's contracts needed liability terms its existing policy could not give. We placed $20 million public liability with the client's wording requests put to the underwriter before binding, then insured two high-value plant units at less than half the highest indication.
THE SITUATION
A utility services contractor running hydro-vacuum excavation units contacted Tank Insurance because its contracts required liability terms, including how subrogation was treated, that its existing $20 million public liability policy did not provide. The existing liability and PI program cost around $42,000 combined, and the client was open to moving the whole program.
OUR APPROACH
- Liability went to a specialist market that would write $20 million public liability for underground utility work, and the client's contract requirements were put to the underwriter up front.
- The underground services exclusion was put to the underwriter. The client asked for the definition to be tightened so it listed specific high-risk assets, such as gas, petroleum, power and fibre, rather than excluding underground services generally, and for the scope of works endorsement to reflect everything the business does. Both requests went to the underwriter before binding.
- Further contracts were reviewed with the underwriter as they were negotiated.
- Plant went to three markets. One quoted, one gave an indication subject to referral, and one indicated $50,000 plus. Both high-value plant units, one carrying a hydro-vacuum excavation unit, were insured on one policy.
THE CHALLENGES
Many liability wordings exclude or restrict damage to underground services, which for a utility contractor removes a core exposure. Putting the client's request to narrow that exclusion to named assets in front of the underwriter before binding was the point of the remarket.
The plant was the second challenge. The plant is specialised and hard to replace, and the client's own view was that market values had risen since purchase. The policy was bound at the disclosed values with a plan to obtain replacement quotes and increase the sums insured by endorsement.
THE OUTCOME
$20 million public liability was placed with The Barn Underwriting Agency at approximately $15,200 a year, with the client's underground services and scope of works requests put to the underwriter before binding. Two high-value plant units were insured with NTI at approximately $22,700 a year, against an indication of around $32,600 from a second market and $50,000 plus from a third.
Final Solution: Liability placed at around $15,200 with the client's wording requests on the record, and two plant units insured at around $22,700, less than half the highest indication.
This case records one historical outcome; current insurer appetite, premium, timing and terms depend on the complete risk at the time of application.
For the wider buying context, see our earthmoving and excavator insurance guide and the public liability insurance brokers page.
UTILITY CONTRACTOR QUESTIONS
What this placement answers for other excavation and utility contractors
Does public liability cover damage to underground services?
How much does plant insurance cost for hydro-excavation trucks?
Can I increase the sum insured on plant after the policy starts?
EARTHMOVING AND EXCAVATION
Put this placement in context
Case-study results are historical and are not a promise of current pricing, capacity or policy terms. This page is general information only and does not take account of your objectives, financial situation or needs.
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