Flooring Contractor Insurance
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What Insurance Do Flooring Contractor Need?
Workers Compensation covers your employees' medical costs and lost wages while recovering from a work-related injury or illness. The employee gives up the right to sue your company in return for receiving cash and benefits from Workers Compensation. In some states it’s mandatory for businesses!
A Fiduciary Bond (or Surety Bond) protects a fiduciary - someone who is granted power over another person’s interests or assets via a will or contract - from being sued for alleged fraud, embezzlement, or dishonest acts.
Professional Liability Insurance (or E&O Insurance), protects your small business from claims of mistakes, negligence or malpractice made when providing your services that caused somebody financial loss. PLI covers your legal defense costs, damages and settlements.
General Liability Insurance protects your small business against claims of third-party bodily injury and property damage, reputational harm and advertising injury. It covers medical bills, repair costs & legal fees.
Frequently Asked Questions
Why do Flooring Contractors need insurance?
Insurance will provide financial protection to flooring contractors against many known and unknown risks. It will protect you from paying medical expenses when an employee is involved in an accident, costly lawsuit and legal action that could eventually force your business into bankruptcy if you pay out of pocket. The insurance will pay the covered expenses until it has reached the coverage limits. All it takes is just a small monthly fee to protect your business.
What risks do Flooring Contractors face?
The business you’ve worked to build can instantly crumble when you face risks without insurance. Here are some risks flooring contractors can face:
- Your employee gets injured while installing flooring on customer property.
- The chemicals your business used to install the floor makes your client sick and they sue your business for damages.
- While tearing out existing flooring, your employee causes serious damage to the property.
These could cause tremendous profit loss if you don’t have the proper insurance to pay for losses.
How much does Flooring Contractor Insurance cost?
Without proper insurance, a single lawsuit could bankrupt your business. So how much does insurance cost? Usually, insurance companies will ask for various criteria like services offered, the number of employees and others to define the cost of your insurance. Without taking those into account, here are some rough estimates on what businesses usually pay:
- General Liability Insurance costs around $400 to $900 in annual premiums.
- Workers' Compensation costs around $1000 to $2000 in the annual premiums.
- Professional Liability insurance costs around $600 to $1500 in annual premiums.
Should Flooring Contractors Insurance Include Workers’ Comp?
Most flooring contractors tend to be hired by either homeowners looking to upgrade their home with new tile, hardwood floors, carpet, or vinyl, or by a general contractor. Many general contractors tend to focus on the bigger projects like drywall and framing and they may leave the installation of flooring up to flooring contractors. As a flooring contractor, you will enter into agreements with these general contractors in which they will require certain insurance policies to be carried by you. One of these is often Workers’ Compensation insurance, which is still true even if you have no employees.
If you do have employees, chances are that your state is going to require that you have Workers’ Compensation so that your employees will be supported if they sustain a work-related injury or illness. Even if you operate in a state that does not require you to have it, you are better off with Workers’ Comp insurance just in case something happens that you are not prepared for. Being able to provide your employees with lost wages and medical expenses if they are injured on the job can make or break your business, which very much includes your wallet. Investing in Workers’ Compensation insurance upfront will ensure that you are on your way to the best possible financial position for your business.
Does Insurance for Flooring Contractors Cover' Commercial Property?
Flooring contractors have many insurance policies with many different coverages. Depending on the size of your business, you might have a Businessowner’s policy which will have a ton of bells and whistles built in. Or, you may have to build a Commercial Package policy with whatever coverage add-ons you require to run your business smoothly. Either way, it is recommended that you have Commercial Property coverage. If you have an office where customers come in to discuss jobs, a home office, or just a storage warehouse to keep your tools and materials, you will certainly want to insure this property.
In addition to covering your business personal property, you should also have some other coverages under the Commercial Property coverage blanket. This includes:
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Business Income: If your office or storage location is damaged by a covered peril, this coverage will provide the funds to find a temporary storage area or to keep key employees while you can get back up and running again.
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Equipment Floater: As a flooring installer, you likely have special tools and equipment that you need to get the job done properly and efficiently. If they are damaged, lost, or stolen, an equipment floater policy will provide the coverage you need to replace them quickly so that there is little to no interruption to your work.