Why Insurance Companies Consider Asphalt Contractors High-Risk

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

Asphalt contractors play a critical role in construction and infrastructure, but insurance companies often classify them as high-risk businesses. This designation can lead to higher premiums, stricter underwriting requirements, and fewer carrier options. Understanding why insurers view asphalt contractors as high-risk—and how to manage that risk—can help business owners secure better coverage and pricing.

This guide explains the main factors behind the high-risk label and how working with a specialist like Wexford Insurance can make a significant difference.

Heavy Equipment and Job-Site Hazards

Asphalt work involves operating heavy machinery such as pavers, rollers, compactors, and dump trucks. These machines increase the likelihood of:

Serious workplace injuries
Equipment damage or theft
Third-party property damage

Insurance carriers factor in the frequency and severity of claims associated with heavy equipment use, which raises overall risk exposure.

Increased Worker Injury Rates

Asphalt paving is physically demanding and often performed in extreme heat conditions. Common injury risks include:

Burns from hot asphalt
Heat exhaustion and dehydration
Slip-and-fall accidents
Machinery-related injuries

Due to these factors, workers’ compensation claims tend to be higher in asphalt operations, increasing insurer costs and premiums.

Public Exposure and Liability Concerns

Many asphalt projects occur on roads, parking lots, and commercial properties with public access. This increases the risk of:

Pedestrian or vehicle accidents
Damage to surrounding property
Lawsuits related to unsafe work zones

General liability claims in these environments can be costly, especially when multiple parties are involved.

Equipment Value and Theft Risk

Asphalt contractors rely on expensive, mobile equipment that is often stored outdoors or transported between job sites. Theft, vandalism, and accidental damage are common concerns for insurers, making contractor’s equipment coverage essential but costly.

Essential Insurance for High-Risk Asphalt Contractors

To offset these risks, insurers typically require asphalt contractors to carry multiple coverages, including:

Having the right combination of policies can help demonstrate risk management and improve insurability.

How Wexford Insurance Helps Asphalt Contractors

Being labeled high-risk doesn’t mean you’re uninsurable. Wexford Insurance specializes in contractor insurance and understands how to position asphalt businesses for better outcomes by: