Cryptic crossword clue
Dug out old coloured cover for madam 7

The most common and most likely answer to this crossword clue is the 7 letter word EXHUMED

I've seen this crossword clue in The Guardian
E
X
H
U
M
E
D

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The straight part
We know that "Dug out" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case dug out = exhumed.
The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.
This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.

What does EXHUMED mean?

EXHUMED verb
  1. To dig out of the ground; to take out of a place of burial; to disinter.
  2. To uncover; to bring to light.

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