Paving Contractors Insurance Policy Information
Paving Contractors Insurance. Paving contractors clear and level job sites, lay wooden forms, and pave driveways, parking lots, roads or highways, streets, and tennis or other athletic courts. For some projects, mesh or reinforcement bars (rebar) will be used to strengthen the finished pavement. Paving is the process of laying down the uppermost surface ("wearing surface") which must withstand the wear-and-tear from tire friction and from the elements. The surface may be made of asphalt or concrete.
A cold or hot mixture may be used for paving. Cold mixtures are often used for temporary repairs and patching as they can be used at lower temperatures, but they are not as strong or durable as a hot mix, which is a combination of asphalt and concrete. Larger operations will have their own portable hot mix plants ("batch plants") that are transported to jobsites. Smaller operations will purchase the hot mix and have it delivered to their jobsite.
Whether you are a local paving contractor that lays and seals asphalt driveways and walkways or you operate a large organization that is contracted to pave roadways, being properly insured is crucial for the success of your business. As with any business, there are certain risks associated with owning a paving operation, and having the right paving contractors insurance is the key to protecting your livelihood.
Paving contractors insurance protects your business from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked paving contracting insurance questions:
- What Is Paving Contractors Insurance?
- How Much Does Paving Contractors Insurance Cost?
- Why Do Paving Contractors Need Business Insurance?
- What Type Of Insurance Should Paving Contractors Have?
- What Are Paving Contractings Risks & Exposures?
- What Does Paving Contractors Insurance Cover & Pay For?
What Is Paving Contractors Insurance?
Paving contractors insurance is a type of insurance specifically designed for businesses that provide paving services such as asphalt paving, concrete paving, and brick paving.
This insurance typically includes coverage for liability, property damage, and injuries sustained by employees or third parties while on the job. It may also include coverage for equipment and vehicles used in the paving business.
The purpose of paving contractors insurance is to protect the business from financial losses due to accidents or damage that may occur during the course of their work.
How Much Does Paving Contractors Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small paving contractors ranges from $67 to $79 per month based on location, size, payroll, sales and experience.
Why Do Paving Contractors Need Business Insurance?
Paving contractors need insurance for a variety of reasons. First and foremost, it protects their business and employees in case of any accidents or injuries that may occur during the course of their work. This includes coverage for medical expenses, lost wages, and legal fees if a lawsuit is filed.
Insurance also protects the paving contractor's financial assets. If a customer files a claim against the contractor for damages or errors in their work, insurance can cover the costs of repairing or replacing the faulty paving. This helps prevent the contractor from going bankrupt or losing a significant amount of money.
Additionally, insurance helps protect the contractor's reputation. If a customer is not satisfied with the work performed, they may file a complaint or leave a negative review online. This can damage the contractor's reputation and deter potential customers from hiring them in the future. Insurance can help mitigate these negative effects by providing resources for handling disputes and defending the contractor's reputation.
Overall, insurance is essential for paving contractors to protect their business, employees, financial assets, and reputation. Without it, they are vulnerable to a range of risks and liabilities that can seriously impact their operations and success.
If your properly insured, your insurance provider will help to cover the cost of any expenses that are related to accidents, injuries, damages, and legal fees; in other words, paving contractors insurance can safeguard your business from financial ruin.
What Type Of Insurance Should Paving Contractors Have?
Paving contractors typically need a variety of insurance policies to protect their business and employees. These may include:
- General Liability: This policy covers any third party injuries or property damage that may occur as a result of the contractor's work. This is especially important if the contractor is working on someone's property, as it protects against accidents or errors that could cause harm or damage.
- Workers' Comp: Paving contractors often work with heavy machinery and equipment, which can be dangerous. Workers' compensation insurance covers medical costs and lost wages if an employee is injured on the job.
- Commercial Auto: If the paving contractor owns or operates vehicles for business purposes, they will need commercial auto insurance to cover any damages or injuries resulting from an accident.
- Professional Liability: This policy covers any errors or omissions made by the contractor in the course of their work. This is important for contractors who provide consulting or design services, as it protects against any errors that could result in financial losses for their clients.
- Equipment Insurance: Paving contractors often invest in expensive equipment and machinery, which can be damaged or stolen. Equipment insurance covers the cost of repairing or replacing this equipment.
Overall, paving contractors need insurance to protect against the risks and liabilities associated with their work. It is important for contractors to carefully consider their insurance needs and purchase the appropriate policies to protect their business and employees.
These are just some of the different paving contractors insurance policies that contractors should carry; other recommended coverage options include workers' compensation insurance, commercial auto insurance, and commercial property insurance.
What Are Paving Contractings Risks & Exposures
Premises liability exposure is low at the contractor's premises since visitor access is limited. Equipment and materials stored in the open may present an attractive nuisance to children. If a hot tar process is used at the contractor's premises, it poses a fire hazard as high winds may carry smoke and heat to adjacent properties. Contact with the tar or bitumen is a minor injury and property damage hazard. At job sites, the contractor is responsible for the safety aspects of the entire project even after hours when there is no construction activity.
Digging, the operation of heavy machinery and asphalt plants, and the weight of large mixers and mix-in-transit vehicles presents numerous hazards to the public and to employees of other contractors. Hazards increase significantly in the absences of job site control, including spotters, signage, and barriers where appropriate. While a new parking lot may be paved with little exposure to the public, most paving contractors must contend with vehicular, bicycle, and foot traffic.
The smoke, dust, and noise generated by paving operations are often nuisance hazards. The uneven ground, hot tar, and heavy machinery may result in serious injuries to passersby and motorists, as well as property damage to adjacent vehicles, buildings, and residences. Serious traffic accidents may occur in the absence of an appropriate barricading system and clear marking of streets and roads that are closed. The party responsible for warning signs, barricades, and other precautions for drivers must be spelled out in any contract.
Construction sites create an attractive nuisance hazard, especially if work is close to residential areas. Wet pavement, in particular, attracts children and vandals. Safety barriers such as perimeter fencing may be needed, especially if work is left uncompleted overnight.
Completed operations hazards vary with the type of operations. Private driveways are generally low hazard work, while trip and fall hazards in a retail parking lot may result in a serious bodily injury loss. Most hazardous of all are airport tarmac and runway projects due to the catastrophic potential of an accident involving a plane full of passengers. Quality control and full compliance with all construction, material, and design specifications is necessary. Hazards increase in the absence of proper record keeping of customer specifications, work orders, change orders, as well as inspection and written acceptance of finished work by the customer.
Environmental impairment liability exposures may arise from the waste generated in the fueling and cleaning of heavy equipment, including mix-in-transit containers, but especially from the asphalt plant. Allowing waste to accumulate either at the job site or in the contractor's yard could result in contamination of air, ground, or water supply. Collection, transportation, and disposal of waste must meet all federal and state requirements.
Workers compensation exposures can be very high. Working around the asphalt plants or with the hot mix can result in burns and inhalation of smoke or harsh chemicals. Other common hazards include back injuries, hernias, sprains, and strains from lifting, cuts and puncture wounds from working with hand tools, foreign objects in the eye, and hearing impairment from cumulative exposure to high-decibel operations. The use, misuse, maintenance, and transport of large, heavy machinery present unique hazards that need review. If the construction site is on or near existing roadways, vehicles on the existing road or street may strike workers, even when warnings and barricades are in place.
Property exposures at the contractor's own location are usually limited to an office and storage of material, equipment, and vehicles. Ignition sources include electrical wiring, heating, and air conditioning systems. The contractor's yard may include piles of gravel as well as large mixing or batch plants that combine the ingredients for mixing cement or concrete and load them into trucks. The exposure is greatly increased if there are large drum mix plants or batch plants involving heat and flammable bitumen or tar.
If repair work on vehicles and equipment is done in the building, fire hazards may be high due to the storage and use of flammable gasoline and other fuel sources. If equipment and supplies are stored in the yard, they may be damaged due to wind, vandalism, and theft. Appropriate security measures must be in place including lighting and physical barriers to prevent unauthorized access.
Crime exposure is from employee dishonesty. Background checks should be conducted prior to hiring any employee. All orders, billing, and disbursements must be handled as separate duties and annual external audits conducted.
Inland marine exposure is from accounts receivable if the contractor bills customers for services, contractors' equipment, especially the hot mix plants, goods in transit, installation floater, and valuable papers and records for project plans, clients' and suppliers' information. Construction equipment and concrete mixed in transit are heavy and difficult to transport. The training of drivers and haulers, especially with respect to the loading, tie-down, and unloading, is important to avoid damage from overturn or collision.
At the job site, hazards come from uneven terrain, from the abrasive or caustic nature of some of the materials, or from the sheer weight of the concrete as it may exceed the equipment's load capacity. Tools and equipment may be damaged by dropping and falling from heights or being struck by other vehicles. Materials and equipment left at job sites may be stolen or vandalized unless proper controls are in place. Copies of project plans should be kept at an offsite location for easier restoration.
Commercial auto exposures are very high if hot tar is transported or the contractor uses mix-in-transit unit, which are among the heaviest on the road. The bodily injury and property damage can be severe should a unit overturn or be involved in a collision. Only very experienced drivers should be involved in the transport. Equipment unloading and setup may take place on uneven ground, or in undeveloped areas, posing an upset, or overturn hazard. All drivers must have appropriate licenses and acceptable MVRs. Vehicles must be maintained and the records kept in a central location.
What Does Paving Contractors Insurance Cover & Pay For?
Paving contractors may face lawsuits for various reasons, such as:
Property Damage: If a paving contractor accidentally damages a customer's property while carrying out their work, they may be held liable for the damage.
How Insurance Helps: Liability insurance for paving contractors can cover the costs associated with repairing the damaged property.
Personal Injury: If a person is injured on a job site, the paving contractor may be held liable for medical bills and other damages.
How Insurance Helps: Liability insurance for paving contractors can help cover medical expenses and other damages if a person is injured on a job site.
Breach of Contract: If a paving contractor fails to deliver the services as per the terms of the contract, the customer may file a lawsuit.
How Insurance Helps: Professional liability insurance for paving contractors can cover the costs of legal fees and other expenses incurred due to breach of contract claims.
Poor Workmanship: If a customer is dissatisfied with the quality of work, they may sue the paving contractor for breach of contract or negligence.
How Insurance Helps: Professional liability insurance for paving contractors can cover the costs of legal fees and damages awarded to the customer in case of a lawsuit due to poor workmanship.
Employee Injury: If an employee is injured on the job, they may file a workers' compensation claim against the paving contractor.
How Insurance Helps: Workers' compensation insurance for paving contractors can cover the costs associated with an employee's medical bills, lost wages, and other related expenses if they are injured on the job.
In conclusion, insurance plays a crucial role in protecting paving contractors from potential lawsuits and liabilities. It is essential for paving contractors to have the right insurance coverage to protect themselves from unexpected events that can occur during their work.
Commercial Insurance And Business Industry Classification
- SIC CODE: 1611 Highway and Street Construction, except Elevated Highways, 1771 Concrete Work
- NAICS CODE: 237310 Highway, Street, and Bridge Construction, 238110 Poured Concrete Foundation and Structure Contractors
- Suggested Workers Compensation Code(s): 5221 Concrete or Cement Work - Floors, Driveways, Yards, or Sidewalks & Drivers, 5506 Street or Road Construction - Paving or Repaving & Drivers
Description for 1771: Concrete Work
Division C: Construction | Major Group 17: Construction Special Trade Contractors | Industry Group 177: Concrete Work
1771 Concrete Work: Special trade contractors primarily engaged in concrete work, including portland cement and asphalt. This industry includes the construction of private driveways and walks of all materials. Concrete work incidental to the construction of foundations and concrete work included in an excavation contract are classified in Industry 1794; and those engaged in construction or paving of streets, highways, and public sidewalks are classified in Industry 1611.
- Asphalting of private driveways and private parking areas-contractors
- Blacktop work: private driveways and private parking
- Concrete finishers-contractors
- Concrete work: private driveways, sidewalks, and parking areas
- Culvert construction-contractors
- Curb construction-contractors
- Foundations, building of: poured concrete-contractors
- Grouting work-contractors
- Gunite work-contractors
- Parking lot construction-contractors
- Patio construction, concrete-contractors
- Sidewalk construction, except public-contractors
- Stucco construction-contractors
Paving Contractor Insurance - The Bottom Line
To find out exactly what type of policies you should invest in and how much coverage you should carry, it's important to speak to a reputable agent that is has ample experience with paving contractors insurance to make sure that your business is properly protected.
Additional Resources For Construction Contractors Insurance
Learn about construction contractors insurance, including how much the premium costs and what is covered - and how business insurance can help protect your construction business from lawsuits.
- Blasting & Drilling Contractors
- Bridge Contractors
- Building Contractors
- Cable Layers
- Demolition Contractors
- Dock & Pier Contractors
- Dredging Contractors
- Foundation Layers
- General Contractors
- Road Contractors
- Sewer Contractors
- Steel Erection Contractors
- Surety Bonds
The construction industry is a high-risk industry that requires business insurance to protect against potential losses. There are several reasons why the construction industry needs business insurance:
Liability risks: Construction projects often involve working on other people's property, which can lead to potential liability risks if any damages or accidents occur. Liability insurance helps to protect against these risks by providing coverage for any legal fees or damages that may arise.
Property damage: Construction projects can also be at risk for property damage, whether it's the company's own equipment or tools, or the property being worked on. Commercial property insurance including inland marine helps to cover the cost of repairs or replacement of any damaged property.
Worker injuries: Construction is a physically demanding industry, and accidents and injuries are a common occurrence. Wrokers comp helps to cover the cost of medical treatment and lost wages for injured workers.
Financial losses: Construction projects can be disrupted by a variety of factors, such as weather, delays, or changes in scope. Business insurance helps to protect against financial losses that may occur as a result of these disruptions.
Overall, insurance is an essential component of the construction industry as it helps to protect against a range of potential risks and losses. Without it, companies in the construction industry would be vulnerable to financial ruin and may not be able to continue operating.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Surety Bonds, Accounts Receivable, Builders' Risk, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Umbrella Liability, Business Automobile Liability and Physical Damage, Hired and Nonowned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Contractors' Equipment, Goods in Transit, Installation Floater, Cyber Liability, Employment-related Practices Liability, Environmental Impairment Liability, Stop Gap Liability, Unmanned Aerial Vehicles (UAV) (Drones).