Flooring installer insurance is something that all floor installation experts should have. As a business owner and contractor, you take on a lot of risks every time you go to a job. Many risks stem from the tools and equipment used on the job site where someone might inadvertently get hurt.
If someone were to get hurt on your job site, you would likely be liable for their medical costs. You may also be responsible for lost wages and pain and suffering. That’s a lot of liability that most flooring installers can’t afford. The solution is flooring installer insurance, where you transfer the financial risk to the insurance carrier.
Flooring installer insurance is not one policy but is instead a package of business insurance policies. A flooring installer may want to get one or more policies to protect against certain types of risks. Policy options include general liability, workers’ compensation, and commercial auto insurance.
Let’s take a closer look at the most common flooring installer insurance types so that you can assess what protection you need.
Most flooring contractors should start with general liability insurance. As it pertains to flooring installer insurance, general liability provides protection from third-party claims. These claims may be about property damage or bodily injury. For example, your tile saw might chip the tile and send a piece into the air. If it hits a bystander in the eye, you are liable for the injuries. General liability insurance covers these types of claims.
Even if you impose strict safety standards on your job site, accidents can and do happen. Even a small general liability claim can be tens of thousands of dollars. Most flooring contractors don’t have the resources to pay such a claim out of pocket. That’s what general liability insurance is for.
As a flooring contractor, you work at different job sites. Having different job locations means that your tools and equipment must move with you from place to place. If someone steals your tools while they are in transit, you might be out of work for a while as you save to replace them. With inland marine insurance, your tools and equipment have coverage. The policy protects them from theft or damage in an accident while in transit.
For example, you drive to the home improvement store to pick up more mortar for a job. While driving there, you are in a car accident. Your tools fall out of the truck in the accident, and the impact damages them. Inland marine insurance will pay to replace them. Note that commercial auto insurance policies do not cover business property in the vehicle. You need inland marine to protect it.
You most likely need to get workers’ compensation insurance when you have employees. The law requires workers’ compensation in most states where you have at least one employee. Workers’ compensation pays for the medical bills and lost wages an employee incurs when they are hurt while working.
Even if you aren’t required to get the insurance, you are still liable for their injuries and can get sued if you don’t have workers’ compensation insurance. Keep in mind that workers’ compensation makes you a better professional. You might be more attractive to general contractors if you maintain a workers’ compensation policy. This may lead to better-paying gigs.
Flooring contractors need to get tools, equipment, and supplies to and from job locations. The way to do this is with a work truck or van. If you’re using a personal vehicle for work, personal auto insurance might not cover losses if there is a work-time accident. Instead, you should have a commercial auto insurance policy.
Commercial auto insurance pays for the liability that happens in at-fault accidents. If you have comprehensive or collision coverage with the policy, you also have protection for your own work vehicle as well. For example, if you accidentally hit another car on your way to a job site and injure the other driver, you are liable for his injuries. Your commercial auto insurance policy pays for those injuries, and collision coverage pays to repair your work truck.
Surety bonds are a guarantee that you will perform your contractual obligations to clients. A surety bond is not really insurance, but instead an agreement between you and the insurance company that if there is a claim, the insurance company will pay the client, and you will repay the insurance company. Surety bonds are available for a nominal fee since you are still liable for the amount paid out.
Flooring installers can get a surety bond to become a “bonded company,” making them more professional and attractive to clients. Some local state and county licensing boards may require a surety bond; however, if you aren’t required to have a license as a flooring contractor, you likely aren’t required to get one.
Your general liability insurance policy has limits. When buying the policy, they may be as little as $100,000 or as high as $1 million, depending on what you select. Some claims may exceed these limits. If a claim goes above the policy limits, you are still liable for the difference. For example, if you have $1,000,000 in liability coverage but the claim is for $1,500,000, you are still on the hook for $500,000.
Excess liability insurance is a policy you can get relatively inexpensively to be that secondary policy to pay the difference for higher claims.
Flooring contractor insurance costs do vary widely depending on a host of factors that include:
Most flooring installers start with a general liability policy. It is possible to get a general liability policy for as little as $39 per month or $500 each year. To get the most accurate pricing, get a quote. Quotes are always free.
We’re big believers in keeping things simple, so ask us anything and we’ll answer honestly and without the jargon.
Why Do Flooring Installers Need Insurance?
Flooring installers need insurance to protect their finances in the event of a loss. General liability protects you if someone says you’re responsible for their injuries or property damage. Without it, you could face the cost of the loss plus any cost of defense that you mount. For many, those costs result in bankruptcy.
What Are The Risks Facing Flooring Installers?
Flooring contractors work with a lot of tools and equipment that can lead to harm. Losses can happen to a bystander, an employee, or the contractor himself. Flooring contractors should have safety protocols in place, but insurance protects you from those unavoidable accidents.
Is Insurance Required For Flooring Installers?
Local laws don’t require most flooring contractors to get insurance. However, general contractors or clients may require flooring installers to have insurance in place. Having insurance is a sign of professionalism and makes flooring contractors more attractive in more job scenarios.
How To Get Flooring Contractor Insurance?
Buying flooring installer insurance doesn’t need to be overwhelming. Start by talking with an insurance agent about what your needs are. The agent will help you identify which are the most critical policies to get. From there, the agent can provide you with quotes, so you know how much it will all cost.
To save money, if your policy has a deductible, consider raising it to reduce the premium. Policies such as commercial auto will go down in price when you select a higher deductible. Just make sure to keep the deductible reasonable – you have to pay it in a claim.
Are Monthly Payments Available For Flooring Contractor Insurance?
We offer easy monthly payment plans with most of the polices. Usually a down payment is required to start. Payment plans may include 9 or 10 monthly options depending on the qualifying business.
What Are The Penalties To Cancel My Insurance Policy?
USA Business Insurance Services doesn’t penalize customers for policy cancellations. When you cancel your Insurance, you are not required to pay penalties.
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