Driveway Contractor Insurance: What They Should Carry

Why Driveway Contractor Insurance Matters to You

The moment a contractor’s truck rolls onto your property, you become the “statutory employer.” If a worker gets hurt or your neighbor’s BMW is sprayed with sealant, the claim lands on your homeowner policy—unless the driveway contractor carries the right insurance. Asking for proof of coverage is the fastest, cheapest way to protect your home equity and your peace of mind.

The Four Non-Negotiable Policies Every Driveway Pro Must Carry

1. General Liability—Your First Line of Defense

General liability pays for property damage and bodily injury that occur during the project. Examples: a dump truck cracks your culvert, or an overspray of asphalt sealer coats your neighbor’s siding. Demand a minimum of $1 million per occurrence and $2 million aggregate. Ask for the ACORD 25 certificate; it should list you as the certificate holder so you get automatic notice if the policy is cancelled.

2. Workers’ Compensation—The Hidden Lawsuit Magnet

Most driveway crews are classified as “533091—Paving Contractors.” In 42 states that classification carries one of the highest workers’ comp rates (often $12–$18 per $100 of payroll). If the contractor skips this coverage, injured employees can sue you under common-law premises liability. Always verify coverage with the state comp board’s online portal; paper certificates can be forged.

3. Commercial Auto—Because Personal Auto Won’t Pay

Personal auto policies exclude “business use.” If a contractor’s hot-box trailer detaches and plows into your living room, their insurer will deny the claim. Require combined single limits of $1 million and make sure the policy includes hired & non-owned auto for any rented or employee-owned trucks.

4. Inland Marine (Tools & Equipment)—Protecting Your Timeline

A stolen plate compactor or broken screed can stall your job for weeks. Contractors who insure their own gear are more likely to replace it overnight and finish on schedule. Ask for at least $50k in inland marine coverage.

Three “Nice-to-Have” Coverages That Separate Pros from Pretenders

1. Professional (Errors & Omissions) Liability

Covers design mistakes such as incorrect pitch that causes water to pool against your foundation. Especially important for stamped-concrete or permeable-paver specialists who perform engineering calculations.

2. Pollution & Silica Liability

Asphalt milling releases crystalline silica. If the cloud drifts onto a nearby school playground, you could face EPA fines. Pollution riders start at $250k and climb to $5 million for larger commercial pavers.

3. Builder’s Risk / Installation Floater

Pays for materials that are damaged before the job is complete. Critical if you pre-paid for $8,000 of Belgian block edging that’s sitting curbside during a thunderstorm.

How to Verify Coverage in 5 Minutes—A Step-by-Step Checklist

1. Ask for the certificate before the estimate, not the morning work starts.
2. Match the legal name on the certificate to the contractor’s license and sales contract. DBA names can differ; mismatches void coverage.
3. Call the insurance agent (not the contractor) and request a primary & non-contributory endorsement. This forces the contractor’s policy to pay first.
4. Check the policy dates: look for at least a 30-day buffer beyond your completion date.
5. Photograph or PDF the certificate; 37% of small policies lapse within 90 days.

Red-Flag Phrases That Signal Inadequate Insurance

• “We’re self-insured.” Translation: no insurance.
• “My guys are 1099s, so no comp needed.” Most states still require coverage if you direct their work.
• “Don’t worry, my homeowner’s policy will cover it.” That’s exactly what you want to avoid.
• Out-of-state certificate with no agent contact in your jurisdiction—claims become a nightmare.

What Driveway Contractor Insurance Costs—and Who Pays the Bill

A typical residential paving contractor with three employees pays:

• General Liability: $1,200–$2,000/year ($1M/$2M)
• Workers’ Comp: $25,000–$40,000/year (based on payroll)
• Commercial Auto: $1,500–$3,000 per truck

Reputable contractors bake these costs into their bids—usually $0.35–$0.55 per square foot of asphalt. If one bid is mysteriously 20% lower, insurance corners are the easiest place to cut.

Higher Project Size = Higher Limits

For driveways over 5,000 sq ft or with commercial tie-ins (HOA roads, church lots), bump requirements to:

• $2 million general liability per occurrence
• $5 million umbrella/excess policy
• $1 million commercial auto (each vehicle)

Ask the agent to email you the umbrella schedule page; it’s one more PDF that can save you six figures.

What Happens If Something Goes Wrong? A Real-World Walk-Through

Scenario: A seal-coat hose bursts, spraying 200 gallons of coal-tar emulsion across your lawn and into a storm drain.

1. Document everything—photos, videos, receipts for damaged plants.
2. Notify the contractor and their insurer within 24 hours; use email for time stamp.
3. Refuse any “on-the-spot” cash settlement; environmental cleanup can exceed $50,000.
4. Keep your homeowner carrier in the loop but insist the contractor’s policy responds first.
5. Accept only certified contractors for remediation; fly-by-night crews can void coverage.

Industry Certifications That Prove Insurance Is Backed by Training

• NPQ (National Pavement Qualification)—requires current insurance plus 8-hour safety course.
• ICPI (Interlocking Concrete Pavement Institute)—mandates $2 million liability for certified installers.
• SWPPP certification—proof the contractor carries pollution coverage for storm-water compliance.

Hiring a certified pro shifts risk away from you and speeds up claims because insurers trust their documentation.

Frequently Asked Questions About Driveway Contractor Insurance