Driveway Contractor Business Insurance: Coverage You Need

Why Driveway Contractor Business Insurance Matters to Homeowners

Hiring a driveway contractor is exciting—new curb appeal, smoother rides, and higher resale value. But before anyone picks up a saw or wheelbarrow, there’s one detail many homeowners miss: Driveway Contractor Business Insurance. The right coverage protects you from surprise bills, lawsuits, and unfinished work when accidents happen. In this guide you’ll learn what policies reputable driveway pros carry, how to verify them, and red flags that signal “keep shopping.”

Core Coverages Every Driveway Contractor Should Carry

Concrete, asphalt, and paver jobs involve heavy equipment, hot materials, and crews moving fast. One cracked gas line or injured worker can turn a weekend project into a five-figure nightmare. Ask any bidder to produce proof of the following policies before you sign a contract.

General Liability Insurance

This is the non-negotiable. It pays for:

• Property damage (e.g., your garage door, neighbor’s fence, underground sprinkler lines)
• Bodily injury to third parties (delivery driver slips on fresh sealer)
• Completed-operations claims (driveway heaves and cracks the city sidewalk six months later)

Minimum limit to look for: $1 million per occurrence / $2 million aggregate. Large commercial or multi-home jobs may need $2 million/$4 million.

Commercial Auto Insurance

Pickup trucks, dump trailers, and seal-coating rigs spend all day on your street. Personal auto policies exclude business use, so the company needs:

• Liability for injuries or damage the truck causes
• Physical damage coverage so they can repair or replace a flipped paver or asphalt roller

Ask for an auto certificate listing you as “Additional Insured” if vehicles will drive across your lawn or a shared HOA driveway.

Workers’ Compensation

Most states require it the moment a business hires its first employee. It pays medical bills and lost wages if a crew member:

• Scorches a leg with hot asphalt
• Fractures a wrist lifting a 90-lb. paver

Pro tip: If the owner says “everyone is 1099,” still request a certificate. Mis-classified workers can sue you under homeowner liability if the insurer denies the claim.

Inland Marine / Tools & Equipment

Concrete saws, laser screeds, and plate compactors can top $50k each. This policy covers theft from a locked trailer overnight or damage en route. While it mainly protects the contractor, it also prevents delays—because a broke contractor can’t finish your job.

Umbrella / Excess Liability

When a claim exceeds the primary limits above, umbrella coverage kicks in. Look for at least $1 million, preferably $5 million for large driveways or commercial lots. It’s cheap peace of mind—usually under $800 a year for the contractor—and signals financial stability.

Optional—but Smart—Coverages for High-End Projects

Pollution / Environmental Liability

Coal-tar sealants, diesel exhaust, and wash-out water can violate EPA or local storm-drain rules. Fines start at $5k and climb fast. Pollution coverage pays cleanup costs and civil penalties.

Professional / Errors & Omissions (E&O)

Design-build contractors who stamp drawings or recommend drainage systems can be sued if the driveway floods the basement. E&O covers design mistakes and negligent advice.

Installation Builder’s Risk

Covers materials (think $20k of porcelain pavers) waiting on site against fire, wind, or vandalism before they’re installed. Helpful on long-duration or supply-chain-delayed jobs.

How to Verify Insurance in 5 Minutes

1. Ask for the ACORD certificate (a one-page summary) before work starts, not after.
2. Check dates. Policies must cover your project start and completion dates.
3. Call the agent. The certificate lists a phone number; a 60-second call confirms the policy is active and premiums are paid.
4. Request additional insured status for General Liability and Auto. You’ll receive an endorsement page with your name or address on it.
5. Compare limits to the contract minimums. Anything lower is a red flag.

Red Flags: When to Walk Away

• Certificate shows personal, not commercial, auto policy
• Workers’ comp listed as “exempt” yet a three-man crew shows up
• Policy expires mid-project with no renewal evidence
• Contractor refuses to name you as additional insured “because it costs extra” (it doesn’t)
• Out-of-state insurer you can’t Google or reach by phone

What Driveway Contractor Business Insurance Costs—and Why It Affects Your Price

Most legitimate driveway pros pay $2,000–$6,000 a year for a basic package (GL, auto, WC, tools). That overhead is baked into every square foot they install. A bid that’s 10 % under everyone else may be “uninsured savings.” Ask yourself: is a $400 discount worth a $40,000 lawsuit?

How to Save Without Cutting Corners

• Bundle projects with neighbors; larger jobs spread fixed insurance costs
• Schedule off-season work when contractors carry lower premiums (fewer crews)
• Offer easy site access to reduce perceived risk and contractor labor hours

Real-World Claim Scenarios Homeowners Face

Download-Ready Insurance Checklist for Homeowners

Print this list and attach it to every contract:

• ☐ General Liability: $1M per / $2M aggregate
• ☐ Commercial Auto: $1M liability, owned & hired
• ☐ Workers’ Comp: statutory limits, no exemptions
• ☐ Umbrella: $1M–$5M
• ☐ Additional Insured endorsement in your name
• ☐ Policy dates span project schedule
• ☐ Agent phone number verified live

Frequently Asked Questions