EXCAVATION INSURANCE GROUP
Does General Liability Cover Damage to Underground Utilities?
Excavation Insurance Group explains why standard GL policies often sublimit underground utility damage and how that gap gets exposed during a strike claim.
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Quick answer: Generally yes, General Liability covers third-party property damage from a utility strike, but many standard contractor GL policies sublimit underground utility damage well below the overall per-occurrence limit. Excavation Insurance Group underwrites this exposure specifically so a strike doesn’t run into a hidden cap you didn’t know was there.
WHERE THE COVERAGE GAP USUALLY HIDES
The issue isn’t that generic policies exclude utility damage outright, most don’t. The issue is sublimits: a policy might carry a $1 million overall limit but cap underground utility damage at a fraction of that, buried in the policy’s endorsements. A contractor who never reads past the declarations page has no idea that cap exists until a claim hits it. This is one of the most common, and most avoidable, coverage gaps in excavation insurance.
WHAT ALSO AFFECTS THE CLAIM
Documented 811/one-call notification matters here too. Some carriers tie full coverage response to proof that proper notification procedures were followed before digging. Keeping a clean 811 log isn’t just regulatory box-checking, it’s part of protecting the claim itself.
Back to the General Liability Insurance for Excavation Contractors hub. See also: What’s Excluded from a Standard Excavation GL Policy?
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