Have you ever wondered why insurance is such a thriving industry? Although there are some forms of insurance that are mandatory — such as bodily injury and property damage liability if you drive a vehicle in the state of Texas — other types of insurance are often voluntary. For example, if you do not have a mortgage on your home, you could probably skip homeowners insurance. While this could save you money, it could cost you in terms of your peace of mind. You might constantly be worrying about what would happen if you high winds damaged your roof or the neighbor’s attempt to fry his Thanksgiving turkey resulted in a fire that spread to your property. The knowledge that you are protected from a financial disaster can make homeowners insurance a valuable product.
Why Your Asphalt Paving Contractor Should Be Insured- What Could Happen
Now imagine that you hire an asphalt contractor to perform work at your home or business. While working on your property, one of the contractor’s workers suffers an injury, drives a piece of equipment into your building, causes an injury to one of your employees or damages a car belonging to one of your best customers. Who is going to pay for any medical bills, repairs or lost earnings that result from the actions of the contractor or his employees? If the contractor does not carry insurance, there is a very good chance that you will be the one footing the bills — one way or another. Perhaps the aggrieved party will file a lawsuit and the judge will find you liable for damages as well as the plaintiff’s attorney fees and court costs. Perhaps your insurance company will cover all or some of these costs, but the company could “reward” you for not hiring an insured contractor by hiking your premiums substantially. In short, if your paving contractor is not properly insured, you could be placing your assets at risk.
Make Sure Your Contractor Has Sufficient Insurance
Although there are many types of commercial insurance that your contractor could carry, two types are vital. The first is workers’ compensation; this only covers the contractor’s employees, but it will pay for their medical expenses and lost earnings. The second type is general liability. General liability insurance covers a variety of events, including injuries suffered by people who are not employed by the contractor, failure of the work performed and damages to property belonging to you, your customers or your employees. Your contractor’s general liability insurance should have a policy limit of at least $500,000 to provide you with sufficient peace of mind.
If the contractor has a commercial umbrella policy, consider it a bonus. Umbrella policies typically provide at least an additional $1 million in coverage and “kick in” when other types of insurance have reached their limits. For example, if the contractor’s actions result in a fatality, the family could file a lawsuit and be awarded $750,000 by the judge. If the contractor’s general liability policy had a limit of $500,000, the umbrella policy would cover the remaining $250,000. Without the umbrella policy, it is possible that you or your company could be liable for the difference.
LDC Paving is an asphalt paving company in Houston and we make safety a priority. Our crews take every precaution to ensure that the environment is safe for everyone, but we also carry sufficient insurance to provide our customers and our employees with the peace of mind that they need. We offer an extensive range of services, including asphalt paving and overlays, sealcoating, pavement markings and parking lot striping, asphalt and concrete repairs, speed bumps, concrete ramps, traffic sign installation and wheel stops. Submit the free quote form online or call (832) 640-7296 to receive a no-obligation estimate.
See Recent FAQs below-