Do Hydro Excavating Companies Need Commercial Auto Insurance?
- Nate Jones
- Oct 3
- 2 min read
Hydro excavation contractors rely heavily on specialized trucks and equipment to perform precise digging and utility locating. These vehicles are not only expensive—they’re essential to daily operations. Whether transporting crews to job sites or hauling vacuum systems and water tanks, hydro excavation companies face significant risks on the road. That’s why commercial auto insurance is a must-have for any business in this industry.
Why Personal Auto Insurance Isn’t Enough
Personal auto insurance policies do not cover vehicles used for business purposes. If your hydro excavation truck is involved in an accident while on the job, a personal policy may deny the claim entirely. Commercial auto insurance is specifically designed to protect business-owned vehicles, offering coverage for:
Liability in case of accidents
Collision and comprehensive damage
Medical payments for injured drivers or passengers
Coverage for owned, hired, and non-owned vehicles
Key Risks Faced by Hydro Excavation Vehicles
Hydro excavation trucks are often driven to remote or urban job sites, exposing them to:
Traffic accidents
Equipment theft or vandalism
Damage from weather or road conditions
Liability claims from third-party injuries or property damage
A single accident involving a hydro excavation truck could result in thousands of dollars in damages, legal fees, and downtime.
What Does Commercial Auto Insurance Cover?
A comprehensive commercial auto policy typically includes:
Bodily Injury Liability – Covers medical expenses and legal costs if your vehicle injures someone.
Property Damage Liability – Pays for damage to other vehicles or property.
Collision Coverage – Covers damage to your vehicle from accidents.
Comprehensive Coverage – Protects against theft, vandalism, fire, and weather-related damage.
Medical Payments – Covers injuries to drivers and passengers.
Uninsured/Underinsured Motorist Coverage – Protects you if the other driver lacks sufficient insurance.
Don’t Forget Equipment Insurance
While commercial auto insurance covers the vehicle, it does not protect the hydro excavation equipment inside or attached to it. That’s where equipment insurance (also called inland marine insurance) comes in. It covers:
Jetting systems
Vacuum pumps
Water tanks
Inspection cameras and tools
This ensures your business can recover quickly from equipment loss or damage.
Partner with Excavating Insurance Partners
At Excavating Insurance Partners, we specialize in business insurance for hydro excavation contractors. We offer:
Commercial Auto Insurance
Equipment Insurance
Whether you're jetting pipelines, locating utilities, or performing environmental cleanup, we help you stay protected and compliant.
Final Thoughts
Hydro excavation companies operate in high-risk environments with valuable assets on the move. Commercial auto insurance isn’t just a legal requirement—it’s a strategic safeguard for your vehicles, crews, and business continuity. Pair it with equipment insurance for full protection and peace of mind. Connect with Excavating Insurance Partners today!
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