Your Paving Contractor Should Be Fully Insured
Your Paving Contractor Should Be Fully Insured
When Americans began taking to the roads in great numbers, it quickly became apparent that accidents would happen — and the driver responsible might not have the money to pay for the damages. Over the years, every state has passed laws requiring drivers to either prove their financial ability to pay up or purchase liability insurance. Massachusetts was the first state to recognize the need for mandatory auto insurance, passing a law in 1925 that became effective in 1927. Although the laws and requirements vary by state and have been changed many times, the goal has always been to protect innocent motorists from the financial losses that result from the actions of another party. Of course, the insurance also helps protect the guilty party from financial loss; the individual will not have to pay out of his own pocket.
Essentially, insurance is all about protecting against financial losses. Certain types of insurance benefit the policyholder, other types benefit the innocent party and still other policies protect both. The concept is easy to grasp when discussing auto insurance, but many property owners have more difficulty understanding why they should make sure that the asphalt contractor they hire carries sufficient insurance.
Your Paving Contractor Should Be Fully Insured
Asphalt contractors will have equipment and personnel on your property. Some of the equipment is capable of causing extensive damage to structures, fences, landscaping or cars. The contractor’s crew may be working with hot asphalt or chemicals that could lead to injuries. If your contractor is not properly insured, people who are injured or whose property is damaged could turn to you for payment, possibly taking legal actions to secure a settlement from you.
Two Critical Types of Insurance for Asphalt Contractors
Many different types of commercial insurance are available, but there are two types that are extremely important. The first is called general liability insurance. These types of policies pay for repairs to property that does not belong to the contractor. If your customer’s vehicle or your fence is damaged, the contractor’s general liability policy will cover repairs. General liability also covers the medical bills incurred by someone who is not employed by the contractor if he or she is injured through the actions of the contractor or his workers. In addition, if the work performed by the contractor is incorrect or fails, general liability can pay the costs to redo the work.
The second type of insurance that you want to make sure that your contractor carries is workers’ compensation. If one of his employees is injured while working on your property, workers’ comp will cover the medical expenses as well as any wages that the employee loses due to his inability to return to work. If the employee dies as a result of his injuries, workers’ comp will pay his family a death benefit. If the contractor does not have workers’ comp insurance, you could be sued by the injured worker or his family. You want to make sure that all of the contractor’s employees who will be performing work on your property are covered under his workers’ comp policy.
Choose Dirtworks for Your Next Project
At Dirtworks, we take safety very seriously on every site and are fully insured for your peace of mind. We are a paving, excavation and demolition company serving the entire Cape Cod area for more than 20 years. We offer an extensive range of services, including asphalt paving and repairs, sealcoating, parking lot striping, milling and site work. Whether you need a driveway built or a cellar hole excavated, we can help by providing quality work at competitive rates. If you have more questions about Your Paving Contractor Should Be Fully Insured, or would like a free estimate – complete the online form or calling (508) 240-5541.
