Paving Contractor Insurance
Why is insurance a must for paving contractors?
Paving contractors face several risks whether they work on public or private roads, driveways, sidewalks, or parking lots. With the right insurance coverage, paving contractors are protected from heavy equipment accidents, asphalt injuries, client lawsuits, and other costly incidents.
Get the right insurance
6 insurance policies every paving contractor should consider
General liability insurance
A general liability insurance policy protects paving professionals against legal expenses related to client property damage and injuries. It's often required by commercial leases and contracts.
- Client bodily injuries
- Damaged customer property
- Advertising injury and copyright lawsuits
Business owner's policy
A BOP bundles commercial property insurance and general liability coverage at a discount. It's often the most cost-effective type of business insurance for paving businesses.
- Accidental client injuries
- Accidental damage to client and business property
- Libel, defamation, and copyright lawsuits
Workers' comp insurance
Most states require companies with employees to carry workers' comp to help with medical bills and lawsuits from injuries on the job. In some states, sole proprietors in construction must have this policy.
- Medical expenses from work injuries
- Disability benefits
- Lawsuits from workplace accidents
Commercial auto insurance
Pavers with business-owned vehicles must carry commercial auto coverage to comply with state laws. It helps cover financial losses in an accident, including legal costs and property repairs.
- Auto accident injuries
- Auto accident property damage
- Vandalism of a company vehicle
Contractor's tools and equipment
A type of inland marine insurance, business tools and equipment insurance protects your equipment wherever you bring them, whether they're with you in transit to the next job site, or stored off-site.
- Equipment that is less than five years old
- Items valued at under $10,000
- Tools that travel to paving job sites
Professional liability insurance
This policy covers lawsuits related to a paving company's mistake, poor recommendation, or other accusation of professional negligence. It's also referred to as errors and omissions insurance or E&O insurance.
- Advice that causes financial loss
- Breach of contract
- Errors and oversights
Paving contractor insurance costs
Here's a quick look at the average costs of common paving contractor insurance policies purchased by TechInsurance customers:
General liability: $77 per month
Business owner's policy: $172 per month
Workers' compensation: $260 per month
Factors that can influence a construction contractor's insurance premium during underwriting include:
- Types of paving services offered, such as road paving, asphalt paving, sidewalks, driveways, etc.
- Number of employees you have, including subcontractors
- Types of insurance purchased
- Coverage limits, deductibles, and other coverage options (e.g., additional insureds)
- Claims history
Start a free application to see how much insurance will cost for your business.
Why paving companies choose TechInsurance
Gain client confidence
Insurance shows clients your business is reliable, and some door and window install contracts even require it. View and print your certificate of insurance anytime with TechInsurance.
Hear from business owners like you who purchased insurance coverage.
Common questions about business insurance for paving and asphalt contractors
Review answers to frequently asked questions (FAQs) about paving business insurance and more.
Do paving contractors need a license or certification?
Many states require paving and road contractors to acquire an occupational license before they can begin working legally. Additionally, local governments at the county or city level might have their own requirements. Some examples of state requirements include:
- California: In order to obtain your earthwork and paving (C-12) contractors license, you must have four years of journey-level experience doing earthwork and paving, be at least 18 years old, have a valid social security or ITIN number, and a valid drivers license or picture ID. Additionally, you'll have to pass California's trade test and law test, and have a qualifying signature on your license application.
- Texas: The state doesn't require contractor licenses, however it is often mandated and enforced at the city or county level. In most cases, you'll have to register with each city you plan to work in or show proof of license before you can pull a permit.
- Nebraska: Unlike most other states, Nebraska has no fees, exams, education, or experience requirements to work as a paving contractor. However, every contactor wanting to do business in Nebraska must register with the Nebraska Department of Labor (NDOL), which includes an annual registration fee of $25. If you have employees, you must also provide a workers' compensation certificate with the NDOL listed as a holder.
Even when not required, pursuing certifications or a business license can be extremely beneficial to a door and window installation company.
Being a licensed and certified contractor can help you stand out from the competition, gain client trust, and acquire contracts for larger jobs. It shows you've mastered the skills to perform the work competently and do a good job.
What other insurance policies do paving and asphalt contractors need?
A general liability policy or workers' compensation insurance provides crucial financial protection against common risks and work-related injuries, but it won't cover all perils a paving contractor may face.
For a complete risk management plan, pavement businesses, including sole proprietors and independent contractors, should also consider the following types of paving and asphalt contractor insurance coverage:
Builder's risk insurance protects pavers and other construction contractors who are working at a structure under construction, along with their materials. It's sometimes called course of construction insurance.
Inland marine insurance protects items in transit or stored at a job site. This is a must since commercial property insurance only covers items at your business address.
Commercial umbrella insurance boosts the coverage of your general liability, commercial auto, and employer's liability insurance once the policy limit is reached.
Products-completed operations coverage provides protection against lawsuits alleging your completed pavement or asphalt damaged a client's property or caused them an injury.
Cyber insurance, also referred to as cybersecurity or cyber liability insurance, is recommended for businesses that handle personal information, such as credit card numbers and email addresses. It covers the steep expenses related to a data breach, including customer notification costs, credit monitoring, legal fees, and fines.
Contractors pollution liability (CPL) insurance covers legal costs related to harm caused by pollution at a construction site. You may also see this policy called environmental insurance.
Management liability insurance is a combination of policies such as employment practices liability insurance (EPLI), directors and officers (D&O) insurance, surety bonds, and others. They cover many risks faced by senior-level managers, including lawsuits and claims of discrimination, mismanagement, and fraud.
