Driveway Workers Compensation: Protecting Against Liability

Why Driveway Workers Compensation Should Matter to Every Homeowner

When you hire a crew to install, seal, or repair your driveway, you’re not just buying concrete or asphalt—you’re inviting a worksite onto your property. If a laborer slips on wet sealant, wrenches a back lifting a plate compactor, or gets hit by a backing truck, medical bills can snowball fast. Driveway workers compensation is the policy that pays those bills and shields you from personal liability.

Too many homeowners assume the contractor’s “general liability” card is enough. It isn’t. General liability covers your property damage (think: a cracked garage door), but it does not cover injured workers. Only a separate workers compensation policy does that. Without it, you could be on the hook for hospital costs, lost wages, even a lawsuit—easy to overlook until an ambulance is in your driveway.

What Exactly Is Driveway Workers Compensation?

Workers compensation (often shortened to “workers comp”) is state-mandated insurance that pays medical expenses, rehabilitation costs, and partial lost wages when an employee is hurt on the job. In the driveway industry it covers:

• Concrete finishers
• Asphalt pavers
• Seal-coating technicians
• Equipment operators and flaggers
• Day laborers and subcontractors who qualify as statutory employees

Each state sets its own rules, but the core idea is identical: injured workers receive fast, no-fault benefits, and in exchange they generally can’t sue their employer—or you.

How Driveway Work Differs From Indoor Trades

Driveway crews face hazards indoor contractors rarely see: 300-degree asphalt, spinning augers, respirable silica dust, and constant proximity to moving vehicles. Because risk is higher, premiums are higher, and some carriers classify driveway crews under the more expensive “street or road construction” code. That’s why verifying coverage is critical; a painter’s $600 annual comp policy won’t cut it for a 6-person paving crew.

Your Real-Life Risk Without Proper Coverage

Imagine a routine seal-coating job. The contractor’s blower malfunctions; the temp worker tries to clear debris manually, cuts his hand on an exposed blade, and needs tendon surgery. If the company lacks workers comp:

1. The worker’s health insurer can deny the claim, citing “work-related injury.”
2. The worker then sues his employer—but if the employer is under-insured or judgment-proof, attorneys look upstream to the project owner (you).
3. Your homeowner’s policy may exclude business-related injuries, leaving you to fund defense costs and a potential six-figure settlement.

Bottom line: the “savings” you pocketed by hiring an uninsured contractor can vaporize with one emergency-room visit.

Horror Story—$180,000 Lesson in Ohio

In 2022 a Columbus homeowner hired a cheap weekend paver advertising on Facebook. A laborer tripped over the owner’s garden hose, fractured a hip, and racked up $180,000 in surgery and rehab. The paving LLC carried no workers comp and dissolved within weeks. Attorneys named the homeowner in the suit, arguing the hose created a premises hazard. The case settled for $95,000—paid from the homeowner’s personal savings and a lien against the house. Proper contractor coverage would have avoided it entirely.

How to Verify Driveway Workers Compensation in 5 Minutes

Don’t accept a paper certificate at face value; they’re easy to fake. Follow these steps:

Step 1: Ask for the Contractor’s Full Legal Name & State License Number

Many driveway outfits operate under a DBA (“Smith’s Paving”) but are incorporated under a different name. You need the exact entity so you can match it to the policy.

Step 2: Request a Current Workers Comp Certificate Sent Directly From the Agent

Ask that your address and project dates appear in the “Certificate Holder” box. Have the insurer email or fax it; now you know it’s authentic.

Step 3: Call the Insurance Carrier to Confirm

Flip the certificate over, dial the carrier’s listed phone number, and verify:

• Policy is active and paid to date
• Classification codes include driveway/paving (usually 5506 or 5507)
• Payroll is sufficient for the crew size (undisclosed off-book payroll is a red flag)

Step 4: Check Your State’s Online Database

Most states let you search by company name or FEIN to see proof of coverage. Links for the ten largest states are below:

• California: CA DIR
• Texas: TDI WC Division
• Florida: FL DFS
• New York: NYS WCB
• Pennsylvania: PA DLI
• Illinois: IL IWCC
• Ohio: OH BWC
• Georgia: GA SBWC
• North Carolina: NC IC
• Michigan: MI WCA

Understanding Sole-Proprietor & Subcontractor Exemptions

Many driveway contractors claim, “I don’t need workers comp; everyone is a 1099 sub.” States allow narrow exemptions, but the rules are tricky:

When a “Sub” Is Really an Employee

If the contractor directs the worker’s schedule, supplies tools, and pays hourly, that “sub” is legally an employee—and must be covered. In most states, misclassification fines start at $1,000 per worker per day.

Valid Exemptions You Might See

• Sole proprietor with no employees (must file an exemption form)
• Partnership or LLC where every member owns ≥10% and opts out (varies by state)
• Corporate officers who own ≥10% stock and waive coverage

Even with exemptions, demand written proof. A one-page state form beats verbal assurances.

Why You Still Need a Written Indemnity Clause

If the contractor brings a true 1099 sub who gets hurt, the sub could sue you claiming unsafe conditions. A short indemnity paragraph in your contract shifts that risk back to the contractor.

What Driveway Workers Compensation Costs—and Who Pays

Premiums run roughly 6%–15% of payroll in the paving sector. On a $9,000 driveway job with $2,500 in labor, workers comp adds $150–$375 to the contractor’s cost. Reputable companies bake it into the bid; fly-by-night outfits skip it to undercut by “just” $300—an enticing saving until tragedy strikes.

How to Spot an Underfunded Bid

Collect three written estimates. If one is >20% below the others, scrutinize insurance. Ask for a breakdown: materials, labor, overhead, insurance. Legitimate contractors itemize quickly; scammers deflect.

Can You Buy Coverage Yourself?

Standard homeowner’s policies exclude business operations. You could purchase a “homeowner’s voluntary workers comp endorsement,” but only a handful of carriers offer it, and it costs $500+ per project. Hiring a properly insured pro is almost always cheaper and simpler.

Top 7 Red Flags That a Driveway Contractor Lacks Workers Comp

1. Only accepts cash or Zelle with no written contract
2. Certificate shows a different company name than the one advertising
3. Agent’s phone number on the certificate routes to voicemail or a burner
4. Policy expiration date is the day your job starts
5. Classification code is “9015—Building Cleaning” instead of paving
6. Asks you to pull the building permit “because it’s cheaper”
7. Brands trucks with magnetic signs that can be swapped in seconds

Action Plan: 10 Protective Steps Before Work Starts

1. Get everything in writing: scope, start/finish dates, total price.
2. Verify workers comp and general liability yourself—no shortcuts.
3. Confirm permit responsibility; the party pulling the permit is often deemed the “prime contractor” and inherits additional liability.
4. Photograph the existing driveway, home exterior, and adjacent property—time-stamped evidence prevents spurious damage claims.
5. Ask for a daily sign-in sheet so you know who is on site; cross-check against payroll records if possible.
6. Keep children and pets inside during active work; curious bystanders increase injury odds.
7. Remove personal obstacles—garden hoses, low-hanging branches, decorative rocks—that could trip workers.
8. Request safety data sheets (SDS) for sealants if you have chemical sensitivities.
9. Inspect equipment condition; bald tires or frayed air hoses foreshadow accidents.
10. Withhold final 10% payment until you receive lien waivers and a formal completion letter stating all subs have been paid.

Future Trends: Rising Premiums and Robot Pavers

Across the U.S., workers comp rates for paving rose 9% in 2023, driven by medical inflation and opioid settlement costs. Simultaneously, robotic screeds and autonomous rollers are entering the residential market. Early adopters may see premium discounts for “automation risk credits,” but humans will remain on site for years. Translation: verification will stay part of your due-diligence checklist.

Frequently Asked Questions About Driveway Workers Compensation