Workers’ Compensation Insurance
Most states require any business with one or more employees to carry workers’ compensation insurance. While you may be a solo operation, you need to get coverage if you hire even one employee for a job.
Workers’ compensation pays for medical costs, lost wages, and rehabilitative expenses for employees who are hurt while performing job duties. In some states, you may be liable for injuries even if the employee is horsing around on the job. Getting a workers’ compensation policy makes sure you meet the legal requirements. It also gives you the right protection to avoid being personally liable for the injury.
Commercial Auto Insurance
Your work truck is an important part of your livelihood. It stores and transports everything you need to get your job done. This is why commercial auto insurance is so important. Personal auto insurance doesn’t protect you from claims that happen in work vehicles. You want to make sure that if you hit another car that you transfer liability to a commercial auto insurance policy. This policy pays for the damage to the other car and any injuries that may result up to the policy limits.
On top of the liability coverage on the policy, you want coverage for your work vehicle if something happens to it. Electing for comprehensive and collision coverage when purchasing the auto insurance policy gets coverage.
Surety bonds are one tool that helps your drywall business appear more professional to prospects and customers. A surety bond is an inexpensive insurance product that covers your contractual obligations. The bond guarantees that you will fulfill the contract terms. If you don’t, the customer can make a claim on the bond and the insurance company will pay the customer for valid claims.
Unlike traditional insurance, if the insurance company pays the customer on the bond, you will repay the insurance company the amount lost. Because the bond gets repaid, they are much less expensive than insurance. Many customers won’t work with a non-bonded company.
Remember that policies only pay up to the policy limits. If your general liability policy has a $100,000 limit, you may have an instance where the claim exceeds it. Excess liability is an inexpensive way to increase the liability coverage that you have. It adds more protection for the most catastrophic losses. First, the baseline policy pays up to its policy limits and then the excess policy kicks in to pay the remainder up to its policy limits.