How much does insurance cost for paving contractors?
Paving contractor insurance costs depend on the type of insurance, policy limits, deductibles, and factors such as your business's location and number of employees. Get peace of mind and save money on commercial insurance by comparing quotes from different providers with Insureon.
Top paving contractor insurance policies and their cost
Here are the top business insurance policies that a paving contractor needs and their average monthly cost:
- General liability insurance: $97 per month
- Business owner's policy (BOP): $145 per month
- Workers' compensation insurance: $312 per month
- Inland marine insurance: $42 per month
- Commercial auto insurance: $268 per month
- Professional liability insurance: $67 per month
- Commercial umbrella insurance: $93 per month
- Surety bonds: $9 per month
Our figures are sourced from the median cost of small business insurance policies for paving contractors who apply for quotes with Insureon. The median offers a better estimate of what your business is likely to pay because it excludes outlier high and low premiums.
General liability insurance
Paving contractors pay an average of $97 per month, or $1,162 annually, for general liability insurance, sometimes called public liability insurance. Some paving contractor businesses need proof of insurance for this policy to sign a commercial lease or a client contract.
A general liability policy can pay for medical expenses from third-party injuries and other third-party risks, such as accidental road paving damage. It also covers costs if someone sues your business over a bodily injury, property damage, or advertising injury.
This is the average policy for paving contractors who buy from Insureon:
Premium: $97 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500
The cost of a general liability insurance policy depends on factors such as the coverage limits you choose, the size of your business, the amount of foot traffic you have, and any subcontractors or additional insured endorsements.
Learn more about how your premium is calculated and how to save money on your general liability policy.
Business owner's policy
Construction businesses and contractors pay an average of $145 per month for a business owner's policy, or $1,739 annually. Only small, low-risk businesses are eligible for a BOP.
A BOP is an insurance package that bundles two important types of coverage at a discount. It includes general liability coverage to protect against common lawsuits, and commercial property insurance to cover vandalism, theft, and property damage.
This is the average business owner's policy for contractors who buy from Insureon:
Premium: $145 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500
The cost of a business owner's policy depends on factors such as the insurance options you choose, the size of your business, the amount of foot traffic you have, and the value of your business property.
Workers’ compensation insurance
Construction businesses and contractors pay an average of $312 per month for workers’ compensation insurance, or $3,738 annually.
Workers' comp helps pay for medical costs from work-related employee injuries and illnesses. Even when it's not required by law, self-employed contractors often buy this coverage for financial protection against job injuries, which personal health insurance could deny.
Most policies include employer's liability insurance, which covers the cost of lawsuits related to workplace injuries. There's usually no limit to how much a workers' comp policy can pay for employee benefits, though it depends on state laws.
The cost of a workers' compensation policy depends on factors such as the number of employees you have and the type of work they do. Learn more about how workers' comp costs are calculated and how to save money on your policy.
Inland marine insurance
Construction businesses and paving contractors pay an average of $42 per month for inland marine insurance, or $505 annually.
Also called tools and equipment insurance, this policy covers portable property whether it’s at a storage unit, in transit, or at a jobsite. Inland marine insurance can pay for lost, stolen, or damaged items, such as shovels, pavers, wheelbarrows, concrete saws, and personal protective equipment (PPE).
The cost of inland marine coverage depends on the value of your tools and equipment and the type of work you do. Items valued at over $2,500 may need to be scheduled separately on the policy.
Commercial auto insurance
Construction businesses, including paving contractors, pay an average of $268 per month, or $3,212 annually, for commercial auto insurance.
Most states require this coverage for vehicles owned by a paving contracting company. For leased, rented, and personal vehicles used by your business, look to hired and non-owned auto insurance (HNOA) instead.
A commercial auto insurance policy covers financial losses in the event of an accident involving your business vehicle. It can help pay for property damage, medical bills, and legal expenses. When buying a policy, you'll need to make sure your coverage limits meet your state's requirements.
The cost of a commercial auto policy depends on your coverage needs, the value of the vehicle, and your insurance claims history. Learn how insurers calculate your premium and how to save money on your commercial auto policy.
Professional liability insurance
Paving professionals and other construction businesses pay an average of $67 per month, or $808 annually, for professional liability insurance. Paving contractors can often bundle this policy with general liability insurance for a discount, at a combined average of $150 monthly.
Professional liability insurance covers defense costs related to professional negligence, such as paving mistakes or oversights. It's sometimes called errors and omissions insurance or E&O insurance.
This is the average E&O policy that general contractors and other construction professionals buy from Insureon:
Premium: $67 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $1,000
The cost of professional liability insurance depends on factors such as the coverage limits you choose, the size of your business, and the paving services you offer. Find out how insurers set professional liability premiums and how to save money on your policy.
Commercial umbrella insurance
Construction businesses and paving contractors pay an average of $93 per month, or $1,111 annually, for commercial umbrella insurance. You can buy this policy to boost the limits of your underlying general liability, commercial auto, or employer's liability insurance.
Umbrella insurance provides an additional safeguard and helps paving contractors meet contractual demands for higher limits. When the underlying policy reaches its limit, commercial umbrella insurance activates to cover any costs over that limit.
The cost of commercial umbrella insurance depends primarily on the amount of coverage you purchase.
Surety bonds
Paving contractors and other construction businesses pay an average of $9 per month, or $112 annually, for a surety bond.
A surety bond reimburses your client if you're unable to fulfill the terms of a contract or other agreement. You may need a surety bond to get a contractor's license for certain types of work.
The cost of a surety bond primarily depends on the size of the bond.
Key factors influencing policy costs
Here are some of the top factors that determine insurance premiums for pavers during the underwriting process:
- Types of coverage purchased. It costs more to purchase insurance policies that protect against a wide range of risks than basic coverage.
- Services offered. A contractor who specializes in driveway sealing can expect lower insurance rates than a paving company that takes on highway construction or other high-risk projects.
- Business property and equipment. Expect to pay more to insure graders, bulldozers, and other heavy machinery than lower-cost items.
- Number of employees. A larger workforce brings a higher risk of employee accidents and mistakes, which raises the cost of workers' comp, general liability, and similar policies.
- Years of experience. Paving contractors with more years of experience tend to pay lower premiums than newer businesses due to lower associated risks.
- Annual revenue. Increased business revenue is associated with higher risks and more frequent claims, which raises insurance costs.
- Policy limits and deductibles. Policies with higher limits cost more but cover more expensive claims. Choosing a higher deductible can lower your premium, but your insurance won't activate until you pay the full amount.
- Claims history. It costs more to insure a paving business that has filed an insurance claim in the past than one that has a clean history of claims.
- Location. Regional factors such as crime rates, population density, and property values affect how much you pay for business insurance. In addition, paving contractors who work near active roadways face increased liability exposure, which can result in higher premiums.
How do I get paving contractor business insurance?
Insureon can help you find affordable paving contractor business insurance coverage in three easy steps:
- Fill out a free online application with details about your business.
- Compare custom quotes from top-rated U.S. insurance providers.
- Select a policy and pay the premium to begin coverage.
Our licensed agents will help make sure your insurance matches your business risks, your budget, and state requirements. Once you've bought a policy, you can download a certificate of insurance (COI) for proof of coverage. Most small businesses can get covered within 24 hours of applying for quotes.
What our customers are saying
The average costs on this page were derived from our data on small business owners in the paving field who purchased policies through Insureon. Most of our customers have less than five employees, annual revenue ranging from around $50,000 to more than $200,000, and five years or less in business.
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