Our New Concrete Driveway Cracked Prematurely: Contractor’s Insurance Handled Claim
The Crack That Spiderwebbed into a Lawsuit
My company poured a new, stamped concrete driveway for a client. Six months later, the client called, furious. A massive network of cracks had appeared. They claimed our mix was bad and demanded we tear it all out and re-pour it, a $20,000 job. I filed a claim with my liability insurer. They hired an engineer who determined the cracks were from the client driving a heavy truck on it before it fully cured. The report proved our innocence, but my insurer paid the expert fees to defend me.
Pouring Protection: Essential Insurance for Concrete Contractors
Solid as a Rock, Until It’s Not
As a concrete contractor, you create things that are the very definition of solid and permanent. But the process of getting there is messy and full of risk. Wet concrete can splatter on a house, a heavy truck can crack a sidewalk, and your finished product can fail years later. Your insurance policy is the hidden rebar in your business. It’s the steel reinforcement that gives your company the tensile strength to withstand the immense financial pressure of a lawsuit or a catastrophic claim. Without it, your business is brittle.
Concrete Contractor Insurance Explained: CGL, Completed Ops, WC, Inland Marine, Auto
The Five Sacks of Your Insurance Mix
I tell my new hires that a good insurance program is like a perfect five-sack concrete mix. Commercial General Liability is the first sack; it’s for property damage. Completed Operations is the second, critical sack, for when our work cracks later. Workers’ Comp is the third, for when a crew member hurts their back. Inland Marine is the fourth, protecting our forms and power trowels. And the fifth is Commercial Auto, for our heavy trucks. If you leave out any one of those sacks, the whole mix is weak and won’t hold up.
Liability for Concrete Splatter Damaging Siding, Windows, Cars
The Splatter That Cost $3,000
My crew was pouring a new patio. As they were spreading the concrete, a small amount splattered onto the homeowner’s dark-colored siding and their brand-new car parked in the driveway. They tried to wipe it off, but it left a permanent, hazy stain. We had to pay a specialist to replace two sections of siding and have the entire car professionally detailed and buffed. The total cost was over $3,000. Our General Liability policy covered the claim. It’s a perfect example of how messy our job is and how easily we can damage surrounding property.
Completed Operations: What if Your Foundation Cracks or Slab Settles improperly?
The Foundation of a Lawsuit
My company poured the concrete foundation for a custom home. Two years later, the General Contractor sued us. A major crack had appeared in the foundation wall, and the garage slab had settled and cracked. They claimed our mix was wrong or our prep work was bad. The cost to repair the foundation was enormous. This is the ultimate “Completed Operations” nightmare for a concrete contractor. Our liability policy, with its strong completed ops coverage, was the only thing protecting us from a six-figure claim.
Workers’ Comp for Concrete Crews: Lifting, Finishing, Silica Dust Risks
The Wet Concrete and the Chemical Burn
One of my young, inexperienced crew members was finishing a slab without wearing proper waterproof boots. The wet concrete soaked through his leather boots. By the end of the day, he had severe chemical burns on both of his feet. Our Workers’ Compensation policy paid for his medical treatment and his time off work. It was a painful reminder that the risks for my crew aren’t just from lifting heavy forms, but also from the caustic, chemical nature of the very material we work with.
Inland Marine Insurance for Your Forms, Mixers, Power Trowels, Finish Tools
The Stolen Power Trowel
We left our new, $4,000 ride-on power trowel at a secure commercial job site over a weekend. We came in Monday morning to find the lock on the gate cut and the machine gone. It was a huge financial hit. My General Liability policy doesn’t cover my own equipment. What saved us was our Inland Marine policy. This type of coverage is specifically designed to protect a contractor’s mobile equipment from theft or damage. It paid to replace the machine so we could get back to work.
Commercial Auto for Your Concrete Trucks (Mixers Need Special Coverage!)
The Cement Truck and the Multi-Car Pile-Up
A ready-mix concrete truck driver from a company I know was on his way to our site. His brakes failed, and he caused a major multi-car pile-up on the highway. Because a fully-loaded cement truck can weigh over 60,000 pounds, the damage was immense. The company’s specialized Commercial Auto policy, which was rated for heavy vehicles and had high liability limits, was all that stood between them and bankruptcy. Standard auto insurance is not enough for the risks of a concrete truck.
Comparing Concrete Insurance Quotes: Residential vs. Commercial vs. Foundation Work
The Patio Guy and the High-Rise Guy
I pour residential driveways and patios. My liability insurance costs about $8,000 a year. My friend’s company pours concrete for commercial high-rise buildings. His premium is over $100,000. The risk is vastly different. If my patio cracks, it’s a $10,000 problem. If his post-tensioned slab on the 20th floor fails, it’s a multi-million-dollar catastrophe that could kill people. The insurance premium has to match the scale of the potential disaster, and commercial structural work is the highest risk there is.
Does Your Policy Cover Damage from Concrete Pump Malfunctions or Spills?
The Hose That Got Away
We were using a concrete pump truck to pour a backyard patio in a tight-access area. The hose operator lost his grip for a second, and the high-pressure hose whipped around, spraying wet concrete all over the back of the client’s house and their brand-new deck. The cleanup was a messy, expensive nightmare. Luckily, our General Liability policy had a specific endorsement covering operations involving concrete pumps. Without that, a claim from that powerful, specialized equipment might have been denied.
Filing a Claim When Your Concrete Work is Blamed for Drainage Issues or Cracking
The Puddle and the Pointing Finger
A homeowner called me a month after we poured their new driveway, complaining that it created a huge puddle near their garage and was causing their basement to leak. They blamed our grading. I filed a claim with my insurer, knowing my crew had done the work right. The insurer sent an engineer who shot the grades and proved that our work was sloped correctly. The report showed the homeowner’s own downspouts were the real problem. The insurer paid to prove my innocence.
My Crew Damaged Landscaping While Pouring a Patio: Insurance Claim
The Wheelbarrow and the Rose Bushes
My crew was wheeling barrows of wet concrete from the truck in the street to the backyard to pour a new patio. One of the guys took a turn too sharply and ran the wheelbarrow right over the homeowner’s prized rose bushes, crushing them. The homeowner was very upset. The cost to have a nursery replace the mature bushes was over $800. Our General Liability policy covered the claim under property damage. It’s a classic example of collateral damage that happens all the time.
Meeting GC Insurance Requirements for Concrete Subcontractors
The $5 Million Dollar Foundation
My concrete company won the bid to pour the foundations for a new school. I was ecstatic, until I saw the General Contractor’s insurance requirements. I had to carry a $5 million liability limit and have a special endorsement for structural work. My policy was only for $2 million. I had to call my agent and buy a large umbrella liability policy just to be able to accept the job. For concrete subs on big projects, the GC’s contract is what determines the high level of insurance you’re required to carry.
Protecting Your Business from Costly Tear-Out and Replacement Claims
The Most Expensive Words in Construction: “Tear it Out”
There is nothing more expensive for a concrete contractor than having to tear out and replace your own work. It means you pay for the demo, the disposal, and the re-pour, all while losing time on other jobs. If your faulty work causes damage to other property, your liability insurance will cover that resulting damage. But it typically won’t pay to fix your own work. That’s why getting the mix, the prep, and the pour right the first time is the most important form of risk management there is.
How Weather (Temperature, Rain) Impacts Concrete Pours and Insurance Risks
The Rain That Ruined the Finish
My crew had just finished a beautiful, broom-finished driveway. It looked perfect. Then, an unexpected pop-up thunderstorm hit before we could cover it. The heavy rain completely ruined the smooth finish, leaving a pockmarked, ugly surface. The client refused to accept it. Because the damage was from a sudden, unforecasted weather event, our insurer worked with us on the claim to replace the driveway. Weather is a huge, uncontrollable risk in our trade, and a good policy can protect you.
Coverage for Decorative Concrete Work (Stamping, Staining) Issues?
The Stamp That Didn’t Match
We were doing a large, stamped concrete patio with a complex pattern. On the second day of pouring, we couldn’t get the new stamp pattern to align perfectly with the previous day’s work. The client was a perfectionist and noticed the tiny mismatch. They claimed the whole project was ruined. This is a tricky “workmanship” and “aesthetic” claim. While insurance may not cover a simple satisfaction issue, if the flaw led to a trip hazard, the liability portion of the policy would likely respond to any resulting injury.
What if Improper Mix Design Leads to Concrete Failure?
The Recipe for Disaster
We were pouring a foundation on a tight deadline and the concrete plant sent us the wrong mix design—it had a lower PSI strength than what was specified. We didn’t catch the error on the ticket. A year later, the concrete started to spall and fail under the load. The builder sued us. Our “Completed Operations” policy defended us, but then our insurer went after the ready-mix company’s insurance via subrogation, arguing that their mistake in providing the wrong material was the root cause of the failure.
Insuring Your Batch Plant or Material Storage Yard
More Than Just a Pile of Sand
My concrete business grew, and we set up our own small batch plant and material yard. My agent told me this created a host of new insurance needs. We needed a robust Property Insurance policy to cover the plant equipment and the piles of sand and gravel. We needed Environmental Insurance to cover the risk of cement dust or chemical runoff. And we needed to increase our Commercial Auto limits because we now had heavy trucks entering and exiting our yard all day.
Protecting Forms and Reinforcing Steel Stored On-Site
The Stolen Rebar
We had a large quantity of expensive lumber for forms and several bundles of steel rebar delivered to a large job site on a Friday. We came in on Monday morning to find that thieves had stolen all of the rebar. It was over $4,000 worth of material. This type of loss is not typically covered by a general liability policy. You need a separate Builder’s Risk policy or an Inland Marine policy with an endorsement for “uninstalled materials” to protect your valuable supplies from theft before they become part of the building.
Concrete Insurance: Solidifying Your Business’s Financial Security
Your Financial Finishing Trowel
As a concrete contractor, your last step is to put a smooth, hard finish on the surface. It’s what protects the slab and makes it durable. Your insurance program is the financial finishing trowel for your business. It’s the final layer of protection that smooths over the rough, expensive realities of accidents and lawsuits. It creates a hard, durable shield over your company’s assets, ensuring that your business is as solid and long-lasting as the product you create.
Understanding Exclusions for Subsidence or Earth Movement
The Shifting Ground Beneath Your Slab
We poured a perfect patio for a client. A year later, they called to complain that the patio had a massive crack down the middle. We discovered the issue wasn’t our work, but that the ground underneath the patio—which was part of a poorly compacted hillside—had settled and sunk. This is called “subsidence.” Most liability policies have an exclusion for earth movement. Our work was fine, but the ground wasn’t. It’s a critical exclusion to understand, as you can’t be responsible for the stability of the entire planet.
Deductibles for Property Damage vs. Completed Operations Claims
Two Cracks, Two Deductibles
We had two claims in one year. The first was when our truck cracked a client’s existing sidewalk. The claim was for $2,000, and we paid our $1,000 property damage deductible. The second was a “completed operations” claim for a driveway we poured that cracked a year later. That claim was $15,000. I was surprised to learn our policy had a separate, higher deductible of $2,500 specifically for completed operations claims. Insurers often have different deductibles for different types of risk.
Liability for Silica Dust Control Measures
The Dust Cloud and the EPA
We were doing a large job cutting and grinding concrete inside a warehouse, which created a huge cloud of silica dust. We received a surprise inspection from OSHA, and they hit us with a major fine for not having a proper silica dust control and monitoring plan in place. This type of regulatory fine is generally not covered by insurance. However, if that same dust cloud had drifted and caused property damage or alleged bodily injury to a third party, our General Liability policy would likely have to defend us.
What if Your Curing Process Fails, Affecting Strength?
The Blankets That Weren’t Warm Enough
We poured a large exterior slab in late fall. We covered it with curing blankets, but an unexpected cold snap dropped temperatures below freezing for two days. The concrete didn’t cure properly, and tests later showed it never reached its specified strength. The GC made us tear it out and re-pour it. This is a classic “business risk” or “faulty workmanship” issue. Your insurance won’t pay for you to redo your own work if your process fails. It’s a costly lesson in the importance of protecting your pour.
Concrete Insurance: Laying a Strong Foundation of Coverage
The Most Important Pour You’ll Ever Make
As a concrete contractor, the most important pour you’ll ever make isn’t a foundation or a driveway. It’s the time and money you pour into creating a solid insurance program. This financial foundation is what supports your entire business. It’s what gives you the strength to take on bigger jobs, the stability to survive a catastrophic claim, and the durability to build a company that will last for decades. Before you pour a single yard of concrete, make sure you’ve poured a strong foundation of insurance.