How to Lower the Insurance Cost for Your Asphalt Paving Business

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

Running an asphalt paving business involves multiple risks—from on-site accidents and property damage to equipment theft and liability claims. Proper insurance is essential, but premiums can be significant. Fortunately, there are proven strategies to lower insurance costs without sacrificing protection. This guide covers actionable tips and how Wexford Insurance can help you find cost-effective coverage.

Essential Insurance for Asphalt Paving Businesses

Before focusing on cost reduction, ensure your business carries the necessary coverage:

General Liability Insurance – Covers third-party injuries and property damage
Workers’ Compensation Insurance – Protects employees injured on the job
Commercial Auto Insurance – Covers trucks, trailers, and work vehicles
Professional Liability (Errors & Omissions) – Protects against design or paving errors
Tools & Equipment Coverage – Covers expensive pavers, rollers, and compactors
Commercial Property Insurance – Covers offices, storage yards, and warehouses

Having all these policies in place ensures your business is protected while giving you a foundation to optimize costs.

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Strategies to Lower Your Insurance Costs

1. Maintain a Clean Claims History

Insurers reward businesses with minimal claims. Implement strict safety programs, provide employee training, and follow OSHA guidelines to reduce incidents.

2. Bundle Multiple Policies

Many insurers offer discounts when you combine general liability, workers’ comp, and equipment coverage. Bundling can significantly reduce overall premiums.

3. Adjust Deductibles Wisely

Choosing a higher deductible can lower premiums, but ensure your business can cover it if a claim arises.

4. Reduce High-Risk Exposure

Avoid unnecessary high-risk jobs or subcontract risky tasks to specialized contractors to lower your risk profile.

5. Work With a Specialist

Insurance agencies experienced in contractor coverage, like Wexford Insurance, can compare multiple carriers, find the best rates, and tailor coverage to your asphalt paving business.