For better or worse, insurance has become a necessary part of American life. After all, if you are involved in an auto accident in which you were not at fault, your first thought was probably not a hope that the guilty driver was not insured. You may carry a variety of personal coverages, including medical, home, or auto insurance, and you likely carry commercial insurance if you operate a business. Your insurance policies protect you from financial loss in the eventuality that a covered event occurs. Therefore, it is only logical that you should want the asphalt paving company you hire to be fully insured so that you will be protected if something goes wrong on your job.
What Could Go Wrong for an Asphalt Paving Company on a Job?
Asphalt paving companies are keenly aware that they are in an industry that can pose potential risks, and most of them are exceptionally good at mitigating those risks. However, experienced asphalt contractors know that there is always a remote possibility that something could go wrong. An employee has a momentary distraction, a client’s employee intrudes into the work area, or a piece of equipment belonging to the paving company experiences a catastrophic failure. In the blink of an eye, someone could be injured, or property belonging to you, your neighbor, or a passer-by could be damaged.
Are There Specific Types of Insurance That an Asphalt Paving Company Should Have?
Potentially, there are several types of insurance that an asphalt contractor could carry. Some are required by local codes, licensing boards, or state law, but other types are completely voluntary.
1. Workers’ compensation is mandatory under Illinois law for virtually every company with at least one employee. Workers’ comp is designed to cover only the contractor’s employees, so it will not cover your employees, guests, or customers if they are injured on your property. If these other classifications of people are injured due to the actions of your asphalt company, the company’s general liability policy should cover the costs associated with their injuries.
2. General liability insurance is mandatory in Illinois for most businesses. General liability covers direct or indirect damages to others that are caused by the asphalt contractor or his employees. Thus, if you or one of your customers is injured or suffers property damage from the actions of your asphalt company, compensation could be provided under the contractor’s general liability policy. However, all businesses, including pavement companies, have a choice of policy limits, which means that the policy will not cover claims in excess of the specified limit. Your contractor should have a policy limit of at least $500,000.
3. Commercial vehicle liability insurance is mandatory in Illinois for all vehicles owned by a business that are solely used for work purposes. However, the state-mandated minimum coverages are comparatively low, ranging from $20,000 to $50,000.
4. Umbrella policies are optional in Illinois, but many asphalt companies carry them. Coverage under an umbrella policy is typically triggered when a claim exceeds the maximum limit of another type of insurance. Most asphalt paving companies that have an umbrella policy choose one with a limit of at least $1 million.
Black Hawk Paving is appropriately licensed, bonded, and insured, and we have been providing exceptional work since 1975. We serve local businesses as well as national chains. Our services include excavations, asphalt paving, concrete curbing and flatwork, asphalt repairs, site grading, parking lot striping, asphalt milling and grinding, sewer repairs, asphalt sealcoating, asphalt fabric, car stops, hot crack sealing, pavement markings, and traffic signage. We have built a loyal following by consistently providing exemplary service and remarkable results at competitive rates. If you are interested in receiving a free quote, submit the online form, call 708-479-0400, or email Info@BlackHawkPaving.com.
