Why Driveway General Liability Insurance Should Be on Every Homeowner’s Checklist
A new driveway is one of the fastest ways to boost curb appeal, yet most homeowners never think to ask one simple question: “Are you insured?” Driveway general liability insurance is the safety net that protects you, your property, and even your neighbors if something goes wrong during installation or repair. In this guide, you’ll learn exactly what this coverage is, how to verify it, and what red flags to watch for—so you can hire with confidence and avoid five-figure surprises.
What Is Driveway General Liability Insurance?
Driveway general liability insurance is a commercial policy that pays for property damage, bodily injury, or legal costs that arise from driveway work. It’s not the same as a contractor’s personal truck insurance or workers’ comp; it specifically covers incidents tied to the job site—your home.
Real-World Example
A dump truck backs over your neighbor’s prized Japanese maple. Without liability coverage, the contractor’s wallet—and possibly yours—pays for the $8,000 replacement tree. With proper insurance, the claim is filed, an adjuster cuts the check, and relationships stay intact.
Top 5 Risks Homeowners Face When Contractors Skip Coverage
- Property damage bills: Cracked foundation, broken sewer line, or collapsed sidewalk.
- Medical costs: A visitor trips on loose gravel and files an injury claim against you.
- Legal fees: You get dragged into litigation because the contractor has no policy to pursue.
- City fines: Permit violations that an uninsured contractor disappears from.
- Resale delays: Buyers’ attorneys ask for proof of insurance before closing; you have none.
How to Verify Driveway General Liability Insurance in 3 Minutes
“Fully insured” in an ad means nothing until you see paper. Use this quick script:
Step 1: Ask for the ACORD 25 Certificate
This one-page certificate lists coverage limits, policy numbers, and your address as the certificate holder. Demand it before the first truck arrives.
Step 2: Call the Agent, Not Just the 800 Number
Google the agency name on the certificate and call the local office. Ask two questions:
- “Is this policy active as of today?”
- “Does it cover residential driveway and flatwork?”
Step 3: Check Minimum Limits
For residential driveways, insist on at least:
- $1 million per occurrence
- $2 million aggregate
- $500,000 property damage (some states allow $1 million combined)
Red Flags That Scream “We’re Not Insured”
- Quotes 30 % below everyone else—no room for premium costs.
- Only accepts cash or Zelle; no paper trail.
- Won’t provide a certificate until “after we start.”
- Uses a P.O. box instead of a business address.
- Vehicle magnets instead of permanent lettering on trucks.
What Does Driveway General Liability Insurance Cost Contractors?
Premiums range from $1,200–$3,500 a year for a small driveway crew—less than the price of a single concrete truck load. That cost is baked into legitimate bids; if a contractor skips it, he’s shifting risk onto you.
Why You Shouldn’t Feel Bad About Paying a Little More
A $500 higher bid that includes insurance can save you $50,000 in out-of-pocket repairs. Look at it as buying a warranty on the entire neighborhood, not just your driveway.
Other Insurance Types Driveway Pros Should Carry
Liability is the foundation, but these extras show a serious outfit:
- Workers’ Compensation: Covers crew injuries; required in most states once a single employee is hired.
- Commercial Auto: Covers trucks and trailers on the road and in your yard.
- Equipment Inland Marine: Pays for stolen plate compactors, saws, or laser screeds.
- Completed Operations: Protects you if the driveway fails months later and causes trip hazards.
Permit & HOA Issues: Where Insurance Saves the Day
Many cities now ask for proof of contractor liability insurance before they’ll pull a driveway permit. If your HOA requires stamped plans, they’ll often demand the same certificate. Hiring an insured contractor keeps the project timeline moving and prevents last-minute scrambles.
How to File a Claim Against a Contractor’s Policy
- Document everything—photos, videos, witness statements.
- Notify the contractor in writing (email counts) within 24 hours.
- Request the insurer’s name and claims phone number from the certificate.
- Call the insurer, give the policy number, and ask for a claim reference.
- Copy your homeowner’s insurance so they can coordinate if needed.
DIY vs. Pro: Does Your Homeowner Policy Cover You?
Standard homeowner policies exclude business activities and earth-moving. If you rent a skid-steer and crack the gas main, you could be on the hook for municipal repairs plus evacuation costs. Moral: leave grading, pouring, and sealing to licensed, insured pros.
9 Questions to Ask Before You Sign a Driveway Contract
- Will you provide an ACORD certificate naming me as certificate holder?
- What are your per-occurrence and aggregate limits?
- Is workers’ comp included for every employee on site?
- Have you filed any claims in the past three years?
- Does your policy cover completed operations?
- Will you pull the city permit or do I?
- What is the deductible, and who pays it if there’s damage?
- Can I keep a copy of the certificate on file until the warranty expires?
- Are subcontractors covered under your policy or theirs?
Quick Homeowner Checklist
- ☐ Get certificate before work starts, not after.
- ☐ Confirm policy dates cover the entire project timeline.
- ☐ Save digital and printed copies with your contract.
- ☐ Take “before” photos of adjacent property.
- ☐ Verify city permit and HOA approvals are in place.
- ☐ Keep a job diary with daily photos in case you need evidence later.