What Equipment Do I Need to Start an Excavating Company?

Nate Jones
Jul 4
3 min read

Starting an excavating company requires more than just ambition—it requires the right tools to get the job done safely, efficiently, and professionally. Whether you're planning to dig basements, clear land, or install utilities, having the proper equipment is essential to launching and growing your business.

In this guide, we’ll break down the must-have equipment for new excavation contractors, offer tips on buying vs. financing, and show you how Excavating Insurance Partners can help you protect your investment with the right insurance coverage.

Essential Equipment for a New Excavating Business

Here’s a list of the core equipment most excavation companies need to get started:

1. Excavator

Purpose: Digging trenches, foundations, and basements
Cost: $80,000+ (used)
Tip: Choose the right size based on the type of jobs you plan to take on.

2. Skid Steer Loader

Purpose: Grading, backfilling, and material handling
Cost: $45,000+ (used)
Tip: Attachments like buckets, augers, and trenchers increase versatility.

3. Truck and Trailer

Purpose: Transporting equipment and materials
Cost: $60,000+ (used)
Tip: Make sure your truck is rated to haul your heaviest equipment.

4. Laser Level or GPS Grading System

Purpose: Ensuring accurate grading and elevation
Cost: $1,000 – $10,000+
Tip: Precision tools help reduce rework and improve job quality.

5. Hand Tools and Safety Gear

Purpose: Job site prep, measurement, and safety
Examples: Shovels, rakes, measuring tapes, hard hats, safety vests, steel-toe boots
Tip: Follow OSHA’s PPE guidelines to ensure compliance.

Optional but Useful Equipment

Mini Excavator: Great for tight spaces or residential jobs
Dump Truck: For hauling debris and materials

excavating business dump truck insurance

Compactor or Plate Tamper: For soil compaction
Hydro Excavator: For non-destructive digging near utilities

Buy vs. Lease: What’s Right for You?

If you’re just starting out, you may not have the capital to buy everything outright. Many contractors choose to finance or lease their equipment.

Buying: Higher upfront cost, but long-term savings and ownership
Leasing: Lower upfront cost, easier upgrades, but higher long-term expense

👉 Learn more about startup costs in our blog: How Much Does It Cost to Start an Excavating Business?

Don’t Forget Insurance

Heavy equipment is a major investment—and it’s exposed to risks like theft, damage, and job site accidents. That’s why you need contractor’s equipment insurance and general liability coverage.

At Excavating Insurance Partners, we specialize in helping excavation contractors find the right insurance for:

Excavators and skid steers
Trucks and trailers
Job site liability
Workers’ compensation

👉 Get a free quote today

Helpful Resources for New Contractors

Final Thoughts

Having the right equipment is the foundation of a successful excavating business. Whether you’re digging basements or clearing land, investing in reliable machinery—and protecting it with the right insurance—will set you up for long-term success.

Need help insuring your equipment or getting your business off the ground? Contact Excavating Insurance Partners today for expert guidance and custom coverage options.