What Kind of Insurance Do I Need for a Traffic Control Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- Nov 18
- 2 min read
Updated: 1 day ago
Running a traffic control business comes with unique risks. From managing road closures to providing flagging services and renting safety equipment, your operations involve liability exposure, employee safety, and expensive gear. To protect your business and meet contract requirements, you need the right insurance coverage.
In this guide, we’ll break down the essential policies for traffic control companies and why they matter.
Why Insurance Is Critical for Traffic Control Businesses
Traffic control services operate in high-risk environments:
Busy roads and construction zones
Heavy equipment and vehicles
Employee safety hazards
Without proper insurance, a single accident can lead to costly lawsuits or equipment losses. Many municipalities and contractors also require proof of insurance before awarding contracts.
Essential Insurance Policies for Traffic Control Businesses
What it covers:
Third-party bodily injury (e.g., a pedestrian injured near your work zone)
Property damage caused by your operations
Legal defense costs
Why you need it:
Traffic control involves public spaces and high liability exposure. This coverage protects you from lawsuits and claims.
What it covers:
Company vehicles used for transporting cones, barricades, and signage
Accidents involving your fleet
Property damage and medical expenses
Why you need it:
Your vehicles are constantly on the move between job sites. Commercial auto insurance ensures you’re covered for accidents and liability.
What it covers:
Office space and storage facilities
Inventory and equipment stored on-site
Fire, theft, and weather-related damage
Why you need it:
Protect your physical assets from unexpected losses.
What it covers:
Employee injuries on the job
Medical expenses and lost wages
Employer liability for workplace accidents
Why you need it:
Flagging and traffic control work is physically demanding and often hazardous. Workers’ comp is required in most states if you have employees.
What it covers:
Damage or theft of traffic control gear (cones, barricades, arrow boards)
Rental equipment protection
Why you need it:
Your equipment is essential for operations and expensive to replace. Equipment insurance keeps your business running after unexpected losses.
Additional Coverage Options
Umbrella Insurance – Provides extra liability protection beyond standard policies
Professional Liability – Covers errors in planning or consulting services
Final Thoughts
Insurance isn’t just a safety net—it’s a requirement for winning contracts and protecting your investment. At Wexford Insurance, we specialize in traffic control business insurance, offering tailored coverage for flagging services, road closures, and equipment rental companies.
Ready to protect your business?
Contact Wexford Insurance today.
