Category: Contractors – Construction


23731 Highway, Street, and Bridge Construction

23811 Poured Concrete Foundation and Structure Contractors

Description of Operations:

Paving contractors clear and level job sites and pave streets, roads or highways, driveways, parking lots, tennis or other athletic courts. Paving is the process of laying down the uppermost surface (“wearing surface”) which must withstand the wear-and-tear from tire friction and from the elements. A cold or hot mixture may be used for paving. Cold mixtures can be used at lower temperatures but are not as strong or durable; these are often used for temporary repairs and patching. Hot mix is a durable combination of asphalt and concrete.

Larger operations will have their own portable hot mix plants (“batch plants”) that are transported to jobsites. Smaller operations will purchase the hot mix and have it delivered to their jobsite.

  • Property exposures at the paving contractor’s own location are usually limited to an office and storage of material, equipment, and vehicles.

    The hazards to fire and wind depend on the processes being conducted in the building. Large drum mix plants or batch plants involve heat and flammable bitumen or tar, and thus pose a serious fire hazard. If repair work on vehicles and equipment is done in the building, fire hazards may be high. If equipment and supplies are stored in the yard, they may be damaged due to wind, vandalism, and theft.

  • Inland marine exposure is from accounts receivable, construction equipment, especially the hot mix plants, construction materials in transit, installation floater, and valuable papers and records. Construction equipment is heavy and difficult to transport. The training of drivers and haulers, especially with respect to the loading, tie-down, and unloading, is important to avoid damage to bulky equipment due to overturn or collision.

    At the job site, tools and equipment may be damaged due to dropping and falls from heights, or being struck by other vehicles. Materials and equipment left at job sites may be stolen or vandalized unless proper controls are in place.

    The accounts receivable exposure could be significant if payments are made via installments throughout the course of the project. Valuable papers and records usually consist of custom project plans. Copies should be kept at an offsite location for easier restoration.

  • Occupier’s liability exposure is low at the contractor’s premises since visitor access is limited, but equipment stored in the open may present an attractive nuisance to children. If a hot tar process is used at the contractor’s premises, it poses a fire hazard. High winds may carry smoke and heat to adjacent properties, posing a risk to neighbors. Contact with the tar or bitumen is a minor injury and property damage hazard. At job sites, the operation of heavy machinery and asphalt plants presents numerous hazards to the public and to employees of other contractors. While a new parking lot may be paved with little exposure to the public, most paving contractors must contend with vehicular, bicycle, and foot traffic. The smoke, dust and noise generated by paving operations are often nuisance hazards. The uneven ground, hot tar, and heavy machinery may result in serious injuries to passersby and motorists, as well as property damage to adjacent vehicles, buildings and residences. Serious traffic accidents may occur in the absence of an appropriate barricading system and clear marking of streets and roads that are closed. The party responsible for warning signs, barricades and other precautions for drivers must be spelled out in any contract.

  • Occupier’s Liability Occupier’s Liability is a concern. Facilities must have even, smooth, unobstructed surfaces to avoid trip and fall. The spaces and the flow of the traffic within the facility must be well-marked. Well-lit exits are also very important. Safety concerns of patrons are critical, so lighting, security guards, and attendants are all items to consider.

  • Completed operations hazards vary with the type of operations. Private driveways are generally low hazard work, while trip and fall hazards in a retail parking project may result in a serious bodily injury loss. Most hazardous of all are airport tarmac and runway projects due to the catastrophic potential of an accident involving a plane full of passengers. Quality control and full compliance with all construction, material, and design specifications is necessary, as is documentation of customer specifications, work orders, change orders, and inspection and written acceptance by the customer.

  • Environmental impairment liability exposures may arise from the waste generated in the fuelling and cleaning of heavy equipment but especially from the asphalt plant.

  • Automobile exposures become more heightened with the transport of hot tar. The bodily injury and property damage severity increases considerably so only very experienced drivers should be involved in the transport. Equipment unloading and setup may take place on uneven ground, or in undeveloped areas, posing an upset or overturn hazard. Age, training, experience, and drivers’ records, as well as the age, condition, and maintenance of the vehicles, are all important items to consider.

  • Workplace safety exposures can be very high especially around the asphalt plants and while working with the hot mix. This type of operation has exposure to burns, chemical applications, smoke and fumes, back injury, hernia, sprain and strain and other lifting injuries. Cumulative exposure to the high-decibel operations may result in permanent hearing impairment. The use, misuse, maintenance, and transport of large, heavy machinery present unique hazards that need review. An additional exposure exists if the construction site is on or near existing roadways as workers may be struck by vehicles on the existing road or street, even when warnings and barricades are in place.

Minimum recommended Insurance coverage for paving contractors:

Business Personal Property, Dishonesty, Disappearance and Destruction, Contractors’ Equipment, General Liability, Umbrella Liability, Automobile Liability and Physical Damage, Non-Ownership Automobile

Other Insurance coverage to consider for paving contractors:

Building, Business Income with Extra Expense, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, Employment Practices Liability, Environmental Impairment Liability