Here are some reasons you really need to make sure your contractor is insured and carried workman’s comp.
1. The contractor or one of their employees gets hurt on the job.
You hire someone to pave your driveway. One of the employees of the company gets hurt on your property. If the contractor you hired does not have worker's compensation insurance for that employee you may be responsible for the medical bills for that injury. While your homeowners insurance usually has some built in worker's compensation, it is much better to have the contractor have his own in place.
2. A competent contractor will always be insured.
People who run their businesses well want to be properly insured. They are professionals who take pride in their work and want to stand by the work they do. A quality company will always want their customers to know they are responsible and want to have the proper insurance in place.
3. You are responsible if damage occurs to your neighbor's property.
You contractor someone to pave your driveway and they knock down a tree. The tree falls, it falls and crushes your neighbor’s car. You are responsible for that damage unless the contractor has liability insurance.
Protect yourself and the work you have done by taking a few minutes more to make sure your contractor has a certificate of insurance. While it can take a little longer, you will be grateful in the end if something goes wrong that you asked for it!