Why Driveway Contractor Insurance Matters to You
A new driveway is one of the fastest ways to boost curb appeal and home value. But before the first truck rolls in, there’s one detail homeowners routinely overlook: verifying that the contractor carries driveway contractor insurance. Without it, a simple crack-sealing job can turn into a five-figure legal headache if someone gets hurt or your property is damaged.
This guide walks you through the exact types of coverage a reputable driveway company should carry, how to confirm the policies are active, and what red flags signal you should walk away. Save it, bookmark it, and pull it out every time you collect bids.
Core Insurance Policies Every Driveway Contractor Needs
Insurance isn’t one-size-fits-all. Below are the four non-negotiable policies a professional driveway or asphalt company must carry.
1. General Liability Insurance
Covers third-party bodily injury and property damage. Example: A worker accidentally sprays sealcoat across your neighbor’s prized rose garden—general liability pays for replacement plants and cleanup.
- Minimum limit you should accept: $1 million per occurrence.
- Ask for an ACORD certificate dated within the last 30 days.
2. Workers’ Compensation
Pays medical bills and lost wages if an employee is injured on your property. Most states require it the moment a company hires its first worker.
- Verify the policy lists your state—some contractors buy cheaper out-of-state coverage that won’t pay local claims.
- Confirm coverage includes ”Driveway/Asphalt Installation” in the class codes.
3. Commercial Auto Insurance
Driveway crews use heavy dump trucks and skid steers that can weigh 26,000 lbs. A personal auto policy excludes commercial use, so insist on commercial auto with a minimum $1 million combined single limit.
4. Equipment & Inland Marine Coverage
Protects rollers, plate compactors, and asphalt pavers while on-site or in transit. If a thief steals a $40,000 roller from your front yard at night, this policy pays for replacement so the job can continue on schedule.
How to Verify Driveway Contractor Insurance in 5 Minutes
Most homeowners stop at “Are you insured?” The right follow-up questions separate pros from pretenders.
Step 1: Request the ACORD 25 Certificate
Email the contractor and ask for a current ACORD 25 certificate naming you as the certificate holder. A legitimate company can produce one in hours, not days.
Step 2: Call the Insurance Agent, Not Just the 800 Number
Google the agency listed on the certificate and call directly. Ask:
- Is the policy active as of today?
- Does it cover asphalt and concrete driveway work?
- Are there any exclusions for residential sites?
Step 3: Match Business Names Exactly
Fly-by-night operators often buy insurance under a parent company, then bid under a different DBA. Make sure the company name on the quote, the contract, and the insurance certificate are identical.
Step 4: Ask for a “Waiver of Subrogation” (Optional but Smart)
If your contractor subcontracts grading or concrete pours, request a waiver so their insurer can’t sue you to recover claim costs. Most insurers add this for $100–$200—pennies compared to legal fees.
Red Flags That Signal Inadequate Coverage
- Certificate is more than 60 days old. Policies can be cancelled mid-term; insist on fresh paperwork.
- Policy shows “excluded operations” for asphalt or concrete. Some landscapers buy minimal coverage that explicitly excludes hardscape work.
- Only $500,000 general liability. Medical bills alone can exceed that if a passer-by trips over equipment.
- Uses 1099 labor with no workers’ comp. If a so-called subcontractor gets hurt, courts often reclassify them as employees—leaving you liable.
- Refuses to provide agent contact info. A reputable contractor welcomes verification; a scammer stalls or ghosts you.
What Happens When You Hire an Uninsured Driveway Contractor
Scenario 1: Worker Injury
A crew member slips on rebar and tears a rotator cuff. Hospital bill: $68,000. Without workers’ comp, the worker’s attorney can sue you under “statutory employer” laws. Your homeowner’s policy may deny the claim because the injury arose from paid construction work.
Scenario 2: Property Damage
An asphalt paver bumps your brick mailbox and cracks the gas main. Repair cost: $12,000 plus city fines. If the contractor’s general liability is fake, you pay out-of-pocket and chase the owner in small-claims court—often fruitless if they’ve already dissolved the LLC.
Scenario 3: Substandard Work & No Warranty
Your new driveway starts spalling within three months. Uninsured “Chuck in a truck” has already cashed your check and changed his phone number. Because there’s no insurer backing the warranty, you’re stuck paying another contractor to remove and repour the slab.
Insurance vs. Bonding: Do You Need Both?
Insurance protects you from losses; a bond protects you if the contractor fails to finish the job. Most residential driveway projects under $25,000 don’t legally require a bond, but asking for one adds a safety net.
- Performance bond: Guarantees completion per contract specs.
- Payment bond: Ensures suppliers and subcontractors get paid so you aren’t hit with liens.
Expect to pay 1–3 % of the contract price if you request bonding; many contractors roll this into large commercial bids but will accommodate homeowners who cover the premium.
How Much Driveway Contractor Insurance Should Cost (and Who Pays)
You don’t buy the policy, but knowing the ballpark premium helps you spot low-ball bids that likely cut corners on coverage.
| Policy Type | Typical Annual Premium | Industry-Standard Limit |
|---|---|---|
| General Liability | $1,200–$2,500 | $1 million per occurrence / $2 million aggregate |
| Workers’ Compensation | $3,500–$7,000 | Statutory limits (varies by state) |
| Commercial Auto (per truck) | $1,800–$3,000 | $1 million combined single limit |
| Inland Marine (equipment) | $500–$1,000 | Replacement value of gear |
Contractors who pay these premiums are motivated to work safely and finish on time. If a bid seems too cheap, ask which policies they carry and request proof—you’ll quickly see where corners are cut.
Quick Homeowner Checklist: Driveway Contractor Insurance
- ☐ Collect ACORD 25 certificates from every bidder.
- ☐ Verify policy dates cover your project timeline.
- ☐ Confirm general liability ≥ $1 million.
- ☐ Check workers’ comp is active in your state.
- ☐ Match business names across quote, contract, and certificate.
- ☐ Call the insurance agent for verbal confirmation.
- ☐ Keep digital copies in your project folder for at least 5 years.
Frequently Asked Questions About Driveway Contractor Insurance
Sometimes, but rarely enough. Most homeowner policies exclude bodily injury or property damage arising out of business activities. Even if coverage applies, you’ll pay your deductible and face premium hikes or non-renewal. Verifying the contractor’s insurance is far safer and cheaper.
Yes. State laws vary, but courts often deem homeowners “statutory employers” when they direct day-to-day work. If there’s no workers’ comp policy, the injured employee can sue you for medical bills and lost wages. Always confirm workers’ compensation is in force.
No. The certificate only proves coverage exists on the day it’s printed. A warranty is a separate guarantee from the contractor (or manufacturer) about workmanship and materials. Reputable companies offer both insurance and a written warranty—ask for each.
Demand certificates from every subcontractor who steps on your property. Require that your contractor list you as an “additional insured” on both his and any subs’ general liability policies. This gives you direct rights under their coverage if something goes wrong.