Underground Utility Damage Insurance for Excavation Contractors

Hitting a buried gas line, electrical conduit, or fiber network isn't always preventable — even when you have dig clearance. Your GL policy excludes it. Underground utility damage (U/G liability) covers the gap that leaves most contractors exposed.

Why the Standard GL Policy Isn't Enough

Most commercial general liability policies contain an "X" exclusion — also called the underground property damage exclusion — that eliminates coverage for damage to buried utility lines. This exclusion stands even when: you called 811, you had dig clearance, the utility's as-built records were inaccurate, or the strike was unavoidable given site conditions.

The cost of a utility strike varies dramatically. A damaged fiber optic cable serving a business district can trigger claims of $100,000+ in lost revenue. A natural gas main ignition can result in multi-million dollar liability. Without U/G coverage, all of that falls on you personally.

What Underground Utility Coverage Covers