What Insurance Do I Need to Bid on Asphalt Paving and Sealcoating Jobs?

Nate Jones, CPCU, ARM, CLCS, AU
Jan 16
2 min read

If you want to bid on asphalt paving or sealcoating jobs, having the right insurance is just as important as competitive pricing. Municipalities, commercial property owners, and general contractors require proof of insurance before allowing contractors to submit bids or start work. Without proper coverage, your bid may be rejected outright.

This guide explains the insurance policies you need to bid on asphalt paving and sealcoating jobs—and how Wexford Insurance can help you get compliant quickly.

Why Insurance Is Required to Bid on Jobs

Project owners want to minimize financial risk. Insurance protects them if an accident, injury, or property damage occurs during paving or sealcoating work. Because asphalt contractors are considered high-risk, bid requirements often include higher coverage limits and specific policy endorsements.

Required Insurance to Bid on Asphalt and Sealcoating Projects

While requirements vary by project and location, most bids require the following coverage:

General Liability Insurance: Covers third-party bodily injury, property damage, and legal expenses. Most bids require at least $1 million per occurrence.
Workers’ Compensation Insurance: Required in most states if you have employees. This policy must be active and compliant with state laws.
Commercial Auto Insurance: Covers trucks, trailers, and vehicles used to transport equipment and materials to job sites.
Contractor’s Equipment Insurance: Protects pavers, rollers, sealcoating tanks, sprayers, and tools from theft or damage.
Professional Liability (Errors & Omissions): Covers claims related to workmanship errors, improper application, or project defects.
Umbrella Insurance: (often required for government or large commercial bids)Provides additional liability limits beyond your primary policies.