Avoid These Mistakes When Running an Excavating Business
- Nate Jones
- Aug 3
- 2 min read
Running an excavation business can be highly profitable—but it also comes with risks. From equipment mishaps to pricing errors, even experienced contractors can make costly mistakes. If you're starting or scaling your excavation company, learning from others' missteps can save you time, money, and reputation.
In this blog, we’ll cover the top mistakes excavation contractors make, and how Excavating Insurance Partners can help you avoid financial setbacks with the right insurance coverage.
1. Underpricing Jobs
One of the most common mistakes is not charging enough for excavation work. Contractors often underestimate:
Fuel and equipment wear
Labor hours
Permit and insurance costs
Unexpected site conditions
👉 Learn more: How to Price Excavation Jobs for Maximum Profit
2. Skipping Proper Insurance Coverage
Excavation involves high-risk activities like trenching, grading, and working near underground utilities. Operating without proper insurance can lead to:
Liability lawsuits
Equipment loss
Job site shutdowns
At Excavating Insurance Partners, we help contractors secure:
👉 Get a free quote today
3. Ignoring Utility Marking Requirements
Failing to call 811 before digging can result in:
Damaged utility lines
Fines and legal action
Injuries or fatalities
Always contact your local utility notification center before starting any excavation.
🔗 Call811.com – Know What’s Below Before You Dig
4. Poor Job Site Safety Practices
Excavation sites are dangerous. Common safety mistakes include:
Inadequate trench shoring
Lack of PPE (personal protective equipment)
Untrained operators
Following OSHA guidelines is essential to protect your crew and avoid penalties.
5. Not Having a Business Plan
Many contractors jump into excavation without a clear strategy. This leads to:
Disorganized operations
Missed growth opportunities
Financial instability
👉 Download our e-book: How to Start an Excavating Business
6. Failing to Market the Business
Even skilled contractors struggle if no one knows they exist. Common marketing mistakes include:
No website or online presence
No Google Business Profile
No social media activity
👉 Learn more: How to Get Excavating Leads for My Excavation Business
Final Thoughts
Avoiding these common mistakes can help you build a safer, more profitable excavation business. From pricing jobs correctly to maintaining proper insurance, every decision matters. Learn from others, stay compliant, and protect your business from day one.
📘 Ready to start or improve your business?
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