Liability vs Equipment Insurance: What Asphalt Contractors Need

Nate Jones, CPCU, ARM, CLCS, AU
Jan 15
2 min read

Asphalt contractors face unique risks daily—from job-site accidents to heavy equipment damage. Two of the most critical coverages for contractors are General Liability Insurance and Contractor’s Equipment Insurance, but many business owners aren’t sure which one they need, or whether both are essential. Understanding the difference ensures your business is fully protected and compliant.

This guide breaks down these coverages, explains what asphalt contractors actually need, and shows how Wexford Insurance can help you get the right policy.

What Is General Liability Insurance?

General Liability (GL) Insurance covers third-party claims, including:

Bodily injury to clients, visitors, or subcontractors
Property damage caused by your work or operations
Legal defense costs for covered claims

For asphalt contractors, GL insurance is crucial if a client or passerby is injured on a paving site, or if property is accidentally damaged during a project. Most states and clients require proof of GL insurance before work begins.

What Is Contractor’s Equipment Insurance?

Contractor’s Equipment Insurance (also called Tools & Equipment Coverage) protects your physical assets, including:

Asphalt pavers, rollers, and compactors
Trucks, trailers, and specialty vehicles
Small tools used for paving and sealcoating

This coverage ensures that damaged, stolen, or lost equipment doesn’t put your business in financial jeopardy. Without it, repairs or replacement could cost thousands and halt operations.

Why Asphalt Contractors Often Need Both

Liability Coverage: Protects your business if a client, subcontractor, or bystander is injured or property is damaged.
Equipment Coverage: Protects your investments in essential machinery and tools.

For asphalt businesses, relying on only one type of insurance can leave significant gaps. Most contractors benefit from a combined approach to cover both third-party risks and equipment losses.

How to Get Proper Coverage

Assess Your Risk Exposure: Review your equipment, job sites, and services offered.
Determine Coverage Limits: Ensure GL and equipment policies provide adequate protection.
Work With a Specialist: Agencies like Wexford Insurance understand asphalt contractor risks and provide tailored policies from multiple carriers.
Request a Quote: Comparing multiple carriers ensures competitive pricing and sufficient coverage.