Overview
Excavation and digging projects of any size can encounter utilities, pipelines, tunnels, and other buried infrastructure. Striking an underground line can cause injury, property damage, service interruptions, and large financial exposure for contractors and property owners. Because many losses from utility strikes are excluded or limited by standard insurance policies, understanding prevention, notice requirements, and the types of coverage available is essential before breaking ground.
This article explains the basics of the one-call notification system commonly known as "call before you dig," the role of utility markouts, and practical steps to reduce risk on residential, commercial, and public projects.
Key takeaways
- Always notify the local one-call system before any excavation, even small digs.
- Utility markouts reduce but do not eliminate risk; safe digging practices remain necessary.
- Standard insurance may not cover interruptions or third-party utility damage—specialized products exist.
- Ask appropriate questions of your insurer and request written documentation of markouts and clearances.
How it works
Most states and local jurisdictions participate in a centralized one-call system that coordinates notifications between excavators and facility owners. When you submit a locate request, utility owners are notified and will mark the approximate location of buried lines so you can dig with a clearer idea of where hazards lie.
Markouts are approximate and based on available records and field locating methods. Excavators should treat the markings as guides and apply hand-digging or vacuum excavation methods within the tolerance zone to verify actual conditions before mechanical digging.
What it may cover (and what it may not)
Some specialized insurance options can help manage the financial consequences of underground damage, business interruption, and pollution arising from a strike. For businesses involved in coordinating or operating one-call systems, specialized policies such as Insurance for One-Call Systems may be available to address unique exposures.
Contractors working on excavation projects should also review products tailored to their trade. Coverage names and scopes vary, and some options focus on cleanup and pollution response while others address third-party property damage and loss of utility service. For protection tied to specific excavation contracts, consider looking at bonds such as Excavation and Grading Bond or insurance forms designed for digging operations like Excavation Work Insurance.
Keep in mind that many general liability and property policies exclude or limit coverage for underground utilities, pollution, and consequential losses such as lost income from a prolonged service interruption. Confirm coverages, limits, and any required endorsements with your insurer.
Common mistakes to avoid
- Assuming locates are exact; failing to hand-expose in tolerance zones.
- Not submitting a locate request for seemingly minor projects or private property work.
- Relying solely on stakes or wooden markers instead of recommended marking methods.
- Failing to document markouts, clearances, and on-site safety measures before excavation.
Questions to ask an agent
- Which policy provisions cover third-party utility damage or business interruption?
- Are there endorsements or specialized products that match my excavation exposure?
- What documentation will the insurer require after a strike or near-miss?
- Do I need performance or grading bonds for this project and what do they guarantee?
Next steps
Before you dig, always submit a locate request through your local one-call system and follow the markouts and safe-excavation practices on site. Maintain records of notification tickets, markout maps, and on-site photos to support risk management and potential claims.
If you need help identifying the right coverage or contract protections for a project, review your situation with an insurance professional and be prepared to provide details about the scope of work, digging methods, and past loss history. If you would like a written quote or policy review, ask an agent to evaluate options and required documentation.
Frequently Asked Questions
Do I always have to call the one-call system before digging?
Yes; in most jurisdictions, contacting the one-call center before any excavation is required and helps reduce the risk of striking buried utilities.
How accurate are utility markouts?
Markouts show approximate locations based on records and locating technology; you should hand-dig or use non-mechanical exposure methods in the tolerance zone to verify exact positions.
Will my general liability policy cover damage to a gas or electric line?
General liability policies often limit or exclude underground utility and pollution losses, so you should confirm coverages and consider specialized endorsements if necessary.
What should I document after a locate request is completed?
Keep the notification ticket, photos of markouts, site logs, and any correspondence with utility owners to support risk management and claims if an incident occurs.