Road Contractors Insurance

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Road Contractors Insurance Policy Information

Road Contractors Insurance

Road Contractors Insurance. The services that street, highway, and road contractors provide are in high demand. Roadways across the country need to be repaired, improved, and expanded, and new roadways need to be installed.

Street and road contractors build, maintain, or repair streets, highways, and interstates. After the route is designed and the land cleared, road construction consists of grading and leveling the earth, laying a bed of gravel, laying down the subsurface road bed (usually of cast-in-place reinforced concrete), surfacing the road with pavement, drying and curing, and marking lanes and crosswalks.

For some projects, mesh or reinforcement bars (rebar) will be used to strengthen the finished pavement. Road contractors may perform all of these operations or just the subsurface work. Bridges, underpasses and viaducts, and projects over or near water involve additional steps.

Surface work includes laying down the uppermost surface of asphalt or concrete which must withstand wear-and-tear from tire friction and the elements. The surface may be made of asphalt or concrete. A cold or hot mixture may be used. 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.

Operations may include transporting unwanted dirt and debris to dump sites or bringing sand, gravel, and other materials to the job site. Hot mix plants ("batch plants") that are transported to jobsites generally produce paving materials, but smaller operations will purchase the hot mix, and have it delivered to their jobsite. After the mixture is laid, a paving machine levels the surface so it will be smooth.

Whether you're repaving battered roadways, expanding highways, or installing new interstates, as a road contractor, the work you do is tedious and can be quite taxing.

Road contractors face numerous risks. While you try your best to avoid those risks, in the event that something does go wrong, you are financially liable for the repairs, damages, and injuries that may occur. As you can imagine, such costs can be extremely exorbitant, but if you're properly insured, you can avoid serious and potentially devastating financial loses.

What kind of risks do road contractors face? What type of road contractors insurance are needed? Read on to find out how to properly protect yourself, your business, and your assets.

Road contractors insurance protects busineses from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked road contracting insurance questions:


How Much Does Road Contractors Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small road contractors ranges from $47 to $89 per month based on location, services offered, payroll, sales and experience.

Why Do Road Contractors Need Insurance?

"Road contractor" is an all-encompassing title that is used to describe contractors that perform a variety of tasks; road and sidewalk paving, freeway construction, highway resurfacing, and more. No matter the specific nature of your job, if the work you do falls under the title of "road contractor", you face a number of risks.

Examples of these risks include work-related accidents and injuries, vehicle collisions, and property damages. While you always go the extra mile to ensure that you deliver impeccable work, there's always a chance that something could go wrong. In the event that something does go wrong, you will be held financially liable. That's why carrying insurance is so important.

With the right type of insurance coverage, if something unexpected does occur, road contractors can avoid the financial repercussions that are associated with mishaps.

For example, if you a third-party filed a lawsuit against you, claiming that you damaged their property while repaving a roadway, or if you sustained a work-related injury, instead of having to pay for the related expenses out of your own pocket, your insurance carrier will cover the costs for you.

In other words, by having the right type of road contractors insurance coverage, you can avoid serious and potentially devastating financial losses.

What Type Of Insurance Do Road Contractors Need?

There are several types of coverage options available for road contractors. The specific types of policies that road contractors should carry depend on a variety of factors, such as the specific services they provide and the region they are located in.

For these reasons, in order to find out exactly what type of coverage you should invest in, speaking to a licensed and experience commercial insurance agent is highly recommended. With that said, however, here's a look at some of the most essential road contractors insurance policies needed:

  • Commercial General Liability: This type of insurance policy will help to cover the costs that are associated with third-party liability and property damage claims. For instance, if a third party were to file a lawsuit against you, claiming that you damaged their property, commercial general liability insurance would pay for the related costs, such as legal defense fees, settlement fees, and repairs to damages that you may have been found liable for.
  • Inland Marine: This type of coverage offers protection for a road contractor's property that is mobile in nature, such as equipment that they own and transport from one location to another. In the event that this property is lost, stolen, or damaged, inland marine insurance will help to cover the related expenses.
  • Commercial Property: To protect the physical property of the space that you operate your business out of, such as an office, a warehouse, or a garage, and the equipment and materials that are housed within it, from damages and losses that are associated with acts of nature, theft, or vandalism, you'll need to invest in commercial property insurance.
  • Workers' Compensation: If you have employees, you're responsible for their well-being. Workers' compensation will help to cover the costs that are associated with any work-related injuries or illnesses that employees may face.

The above are just a few examples of the different types of road contractors insurance policies that should be considered. To find out how much coverage you'll need and to develop policies that offer robust protection, speak with an experienced insurance agent.

Road Contractors' Risks & Exposures

Premises liability exposure at the contractor's premises is limited due to lack of public access. 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. Off-site exposures are extensive. The area of operation should be restricted by barriers and proper signage to protect the public from the hazards of digging and overhead operations. Digging and excavation, the operation of heavy machinery and asphalt plants, and the weight of large mixers and mix-in-transit vehicles present numerous hazards to the public and to employees of other contractors.

Hazards increase significantly in the absence of job site control, including spotters, signage, and barriers where appropriate. Road 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.

Grading and trenching may result in damage to underground lines or piping, some of which may be catastrophic. 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.

At job sites, the contractor is responsible for the safety aspects of the entire project even after hours when there is no construction activity. Construction sites create an attractive nuisance hazard, especially if work is close to residential areas. Wet pavement, in particular, attracts children and vandals. All equipment must be disabled when not in operation to prevent untrained individuals from using it.

Safety barriers such as perimeter fencing may be needed, especially if work is left uncompleted overnight. If the insured does road work on bridges, there may be hazards to persons and property due to falling objects. Work near water poses unique hazards.

The use of subcontractors as well as any contractual liability exposures should be examined.

Personal injury exposures include assault and battery and invasion of privacy. Background checks should be conducted for any employee who will have regular contact with customers.

Completed operations hazards can be high due to the number of vehicles that drive on public roads and the potential for serious bodily injury should the road fail. 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 are moderate from the waste generated in the fueling and cleaning of heavy equipment, including mix-in-transit containers, and especially from the asphalt plant. Spillage and leaking of pollutants into the air, ground, or water can result in high cleanup costs and fines. Spills must be controlled, and equipment monitored at all times.

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. Disposal procedures must adhere to all EPA and other regulatory standards. Proper written procedures and documentation of both the transportation and disposal process are important.

Operations can result in claims of noise or dust pollution by neighboring properties and claims for cumulative structural damage to neighboring foundations from heavy traffic.

Professional liability exposures are high from the design of the project and the interpretation of specifications by the contractor's engineers. Collapses under the load of traffic are rare but catastrophic. Other factors must be considered, including soil conditions for foundations, historic flood and tide levels, wind shear, and potential for seismic activity.

Due to prior bridge collapses, it is now mandatory that every bridge design be submitted to wind tunnel testing. Many contractors have engineers that will do incidental draft work, such as water drainage channels.

Workers compensation exposures can be very high. Serious injuries or even fatalities may occur from vehicles during work on existing roads, particularly in the absence of an appropriate barricading system and clear marking of streets and roads that are closed.

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 slips and falls, back injuries, hernias, sprains, and strains from lifting or working from awkward positions, cuts and puncture wounds from working with hand tools, foreign objects in the eye, and hearing impairment from cumulative exposure to high-decibel operations, bites from insects or vermin, temperature extremes, auto accidents to and from job sites, and exposure to pollutants.

As operations are often conducted in remote areas, it may be difficult to transport an injured worker to a medical facility to receive prompt treatment. Fine sand from the concrete mixture may cause eye injuries or even lung disease such as silicosis. Pouring concrete from a mixer usually involves operations on top of the vehicle; the absence of proper guarding may significantly increase the exposure to loss.

Cleaning residue from inside cement mixers is particularly hazardous without adequate ventilation. The absence of good maintenance, proper use of basic safety equipment, such as properly installed guards, steel-toed shoes, and eye protection, and strict enforcement of safety practices may indicate a morale hazard.

Digging and grading of land may result in injury from underground electrical cable or gas lines. Work on viaducts, bridges, and ramps may involve some work at heights. Work over or near water and waterways poses an additional risk of drowning.

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, sand as well as large mixing or batch plants that combine the ingredients for mixing cement or concrete and load them into trucks awaiting transport to job sites.

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 or cleaning of 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.

Inland marine exposures are from accounts receivable if the contractor bills customers for services, contractors' equipment, including hot mix plants, goods in transit, installation floater, and valuable papers and records for project plans, clients' and suppliers' information. Copies of project plans and other data should be kept at an offsite location for easier restoration.

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 surfacing material as it may exceed the equipment's load capacity.

Tools and equipment may strike underground objects or utility lines, fall into holes or pits, slip or fall into mud, water, or sinkholes, be damaged by rock, land, or mud slides, or burst into fire due to overload. Tools and equipment may be damaged by dropping and falling from heights, changes in the weather, water hazards, or being struck by other vehicles.

Hot mix plants may overheat and catch on fire. Materials and equipment left at job sites may be stolen or vandalized. Equipment should be secured and rendered inoperable when not in use. Jobs may involve placement of large precast concrete deck segments manufactured offsite, transported to the job, and lifted up onto bridge piers or other structures with a crane.

Resulting hazards include instability due to overload and wind velocity, causing possible damage to both the crane and the building materials. Contractors may lease, rent or borrow equipment, or may lease out, rent or loan their owned equipment to others, which poses additional risk as the operator may be unfamiliar with operation of the borrowed item.

Crime exposure is from employee dishonesty. Background checks should be conducted prior to hiring any employee. There must be a separation of duties between persons handling deposits and disbursements and reconciling bank statements. Physical inventories should be conducted on a regular basis to prevent employee theft of equipment.

Commercial auto exposures are very high. Serious property damage or injury to passing pedestrians or motorists or to employees of other contractors can arise during loading and unloading of equipment and materials. Similar hazards are posed if trucks are used for grading of land or dump trucks are used for hauling sand and gravel.

The bodily injury and property damage can be severe should hot tar be transported, or the contractor uses mix-in-transit units, which are among the heaviest on the road. These can cause severe bodily injury or property damage even in apparently minor collisions. These units are awkward to handle while driving or in operation and are difficult to tow if they overturn or become stuck in mud.

The driver of the truck must be trained in handling a top-heavy vehicle as considerable skill and knowledge is required for safe driving. If there is a collision, the resulting overturn may spill the load onto a public road and prevent access until cleanup is completed. Equipment unloading and setup may take place on uneven ground, or in undeveloped areas, posing an additional upset or overturn hazard.

Long drives with oversized equipment may lead to driver fatigue and resulting accidents. For long-term projects away from home base, personal use of company vehicles poses a concern. There should be written procedures for personal and permissive use of vehicles furnished to employees.

Similarly, employees may use their own vehicles on company business for long periods, especially to transport crews to the jobsite. All drivers must have appropriate licenses and acceptable MVRs. Random drug and alcohol testing should be conducted. Vehicles must be maintained, and the records kept in a central location.

Commercial Insurance And Business Industry Classification

  • SIC CODE: 1611 Highway and Street Construction, Except Elevated Highways, 1622 Bridge, Tunnel And Elevated Highway Construction
  • NAICS CODE: 237310 Highway, Street, and Bridge Construction
  • Suggested ISO General Liability Code(s): 99321, 99315, 91266, 91265
  • Suggested Workers Compensation Code(s): 5506, 5507, 5508

Description for 1611: Highway and Street Construction, Except Elevated Highways

Division C: Construction | Major Group 16: Heavy Construction Other Than Building Construction Contractors | Industry Group 161: Highway And Street Construction

1611 Highway and Street Construction, Except Elevated Highways: General and special trade contractors primarily engaged in the construction of roads, streets, alleys, public sidewalks, guardrails, parkways, and airports. Special trade contractors primarily engaged in the construction of private driveways and sidewalks are classified in Industry 1771.

  • Airport runway construction
  • Alley construction
  • Asphalt paving: roads, public sidewalks, and streets-contractors
  • Concrete construction: roads, highways, public sidewalks, and
  • Grading for highways, streets, and airport runways-contractors
  • Guardrail construction on highways-contractors
  • Highway construction, except elevated
  • Highway signs, installation of-contractors
  • Parkway construction
  • Paving construction-contractors
  • Surfacing street and highways-contractors
  • Road construction, except elevated
  • Sidewalk construction, public-contractors
  • Street maintenance or repair-contractors
  • Street paving-contractors

Description for 1622 Bridge, Tunnel And Elevated Highway Construction

Division C: Construction | Major Group 16: Heavy Construction Other Than Building Construction Contractors | Industry Group 162: Heavy Construction, Except Highway And Street

1622: Bridge, Tunnel And Elevated Highway Construction: General contractors primarily engaged in the construction of bridges; viaducts; elevated highways; and highway, pedestrian, and railway tunnels. General contractors engaged in subway construction are classified in Industry 1629. Special trade contractors primarily engaged in guardrail construction or installation of highway signs is classified in Industry 1611.

  • Abutment construction
  • Bridge construction
  • Causeway construction on structural supports
  • Highway construction, elevated
  • Overpass construction
  • Trestle construction
  • Tunnel construction
  • Underpass construction
  • Viaduct construction

Road Contractors Insurance - The Bottom Line

To protect your operations, employees and your clients, having the right road contractors insurance coverage is important. To learn what types of options are available to you, how much coverage you should invest in and the cost - speak to a reputable commercial insurance broker.

Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).


Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

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.


Construction Contractors Insurance

Construction contractors have substantial needs for many types of insurance coverage. Most would point to the importance of coverage for completed operations, premises liability coverage during construction operations at jobsites and professional or design errors and omissions insurance.

Such coverages can be provided only when the interests of the contractor and of the property owner are understood; particularly the contractual obligations assumed by the contractor. Next in significance is the workers compensation exposure followed by business automobile. Inland marine coverage for expensive mobile equipment, supplies, other tools of the trade and builders' risk can be vital.

Liability coverage is needed by a construction contractor in order to obtain most jobs. In addition, if a contractor wants to stay in business, it must be obtained to protect it from lawsuits due to its premises operations, off-site locations and products/completed operations exposures. Owners and contractors protective liability and railroad protective liability coverages may also be required in certain cases in order for a contractor to meets its obligations for particular jobs.

Many construction contractors do not have the usual location-specific buildings and business personal property exposures. Their business property is more mobile and, therefore, better covered with inland marine coverage forms. However, for those larger construction contractors that own buildings and/or maintain business inventory there are many coverage forms and choices available to them.

Construction contractors use their vehicles to get to and from their workplaces and jobsites. They also use vehicles to transport equipment and inventory to those locations. It is important to cover the liability of these vehicles for injury or damage they may cause, as well as to provide coverage for damage to the vehicles themselves.

Employers are required to provide coverage for injuries sustained by their employees while on the job. Construction contractors must comply with these requirements but some try to avoid them by hiring subcontractors. These subcontractors may actually operate and qualify as employees. The relationship between a contractor and its subcontractors must be carefully evaluated in order to determine if workers compensation coverage is still needed.

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).


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