Insurance for road construction contractors

How insurance looks for road construction contractors

Road construction contractors build, upgrade and rehabilitate roads and related drainage. Projects are linear, often under traffic accommodation, and may involve sub-base, base layers, asphalt and road furniture.

Public employers commonly set the contract terms, with prescribed insurance requirements and security. Working in the public eye means that third-party claims can arise quickly.

Exposures to assess

These scenarios show where the insurance conversation usually becomes specific for this trade. They are exposures to assess with an insurer, not assurances that any policy will respond.

Working beside live traffic
A motorist alleges that vehicle damage was caused by road conditions or signage at a work zone. Consider how liability is assessed, what traffic accommodation records are kept and what limit of indemnity the contract requires.
Plant moving in and out of the works
Rollers, pavers, graders and tippers cross the roadway or enter from side roads. Review how the policy treats incidents involving plant on or near public roads.
Hot works and bitumen
Bitumen and fuel storage, heating and spraying introduce fire and pollution risks. Ask what is excluded for pollution and how sudden events are treated.
Rain on partly completed layers
Storm damage washes out layers before the surface is sealed. Check how the contract works policy treats weather damage to unfinished road layers.
Materials and fuel on remote sections
Stockpiles, drums and plant on long, lightly guarded sections are exposed to theft and vandalism. Review security conditions.

Covers to discuss

Covers worth raising for road construction contractors, and why
Cover	Why it may matter
Contractors All Risk	Addresses the road layers and structures as they are built.
Public liability	Central to claims by motorists and others affected by the works.
Plant All Risk	Pavers, rollers and graders are high-value machines that work in difficult conditions.
Construction fleet	Tippers and water tankers operating on public roads.
Sasria cover	Roadworks can be affected by community protest, which standard policies exclude.

Information that helps us prepare a quotation

The contract form, employer and the insurance requirements.
Length of the works and the traffic accommodation arrangements.
Plant on site, and whether any is hired in.
Use of subcontractors, including surfacing subcontractors.
Any history of community unrest affecting the project area.
Fuel and bitumen storage arrangements.

Frequently asked questions

Does public liability cover vehicle damage from roadworks?

It may respond to legal liability for third-party property damage, subject to the policy and to the facts. The wording and the limit matter, and liability must be established. Ask us to review the contract requirement.

Do road projects need special-risk cover?

Some do. If the project area has experienced protest or disruption, Sasria special-risk cover is worth discussing.