According to the California Contractors State License Board, “ an earthwork and paving contractor digs, moves, and places material forming the surface of the earth, other than water, in such a manner that a cut, fill, excavation, grade, trench, backfill, or tunnel (if incidental thereto) can be executed, including the use of explosives for these purposes. This classification includes the mixing, fabricating and placing of paving and any other surfacing materials.”
These contractors have significant exposure to claims for third-party bodily injury and property damage, and even more risk for injuries to employees and subcontractors. Earthwork and paving contractors operate hazardous heavy machinery at the job site and use explosives on a regular basis in order to break up the earth for excavation, trenching, and tunneling.
Certainly, with the enormous risks that are faced every day, Fairbanks Insurance Brokers offers earthwork and paving contractors a package of coverages that will provide financial protection to mitigate financial risk.
Earthwork and Paving Contracts should use the general liability policy as a foundation of their insurance package. Not only will this policy respond to bodily injury liability and property damage claims, but it will also pay for defense costs if an action is brought against the company.
The California State Licensing Board requires that all licensed contractors carry workers’ compensation insurance to financial protect employees in the event they are injured or become ill on the job. This coverage not only pays medical expenses but will also help with lost wages when an employee is unable to work.
According to California’s Business and Professions Code Section 7071.6, a Contractor’s Bond must be in place before CSLB can issue an active license, reactivate an inactive license, or renew an active license. Typically, all private and governmental project owners or managers will require a bond from their contractors starting with the bidding process and until the project is complete. The bond is a financial guarantee that the contractor will perform according to the terms of the project agreement.
Since earthwork and paving contractors use heavy trucks and mobile equipment, a commercial auto policy is the only way to financially protect their interest in the equipment and provide liability in the event of an at-fault accident or incident.
Fairbanks Insurance Brokers can provide protection for the contractor’s tools and equipment using the Inland Marine policy. The contractor’s property will be financially protected while at the job site, in transit, or storage between projects.