Solar Panel Installer Insurance
Solar energy is becoming more popular for residential homes and office buildings. That means solar panel installation businesses are in high demand. Running a successful solar panel installation business can be financially rewarding, but it’s important to have solar panel installer insurance to protect yourself against potential risks.
Installing solar panels comes with certain dangers, for both your employees and your customers. An installation technician could fall from a ladder and get seriously injured. An improperly-installed solar panel could cause roof damage, leading to leaks and water damage. These types of scenarios can lead to expensive lawsuits and other financial hardships.
As a solar panel installation business, you understand how important it is to follow safety precautions, hire responsible workers, and ensure that installations are done correctly. However, accidents can still happen. With solar panel installer insurance, your business, your employees, and your clients are protected in case something happens.
Solar panel business insurance is not a single policy. There are multiple types of insurance that businesses should consider purchasing. Here are some of the most beneficial commercial insurance policies for solar panel installation businesses.
General liability insurance protects your business against third-party claims of bodily injury and property damage liability. Specifically, it pays for your legal defense in a lawsuit and a settlement or judgment with the other party. It can also cover a small portion of medical expenses in the event of a bodily injury claim.
Inland Marine Insurance
Inland marine insurance protects your business equipment during transport, either via train or truck. It also covers your equipment that is being stored in an off-site location. For example, most solar panel installation companies bring their own tools and equipment with them to each job site. If one of your ladders got damaged in your work truck on the way to a customer’s house, inland marine insurance would pay to replace it.
Workers’ Compensation Insurance
Workers’ compensation insurance is a legal requirement in most states for businesses with at least one employee. This policy will cover your employees’ medical bills if they get sick or injured at work. It can also cover related expenses, such as lost wages and disability benefits. In addition, workers’ compensation insurance will pay for your business’ legal fees if the employee sues you.
Commercial Auto Insurance
If your solar panel installation business uses work trucks or vans to transport materials and get to job sites, you will need to purchase commercial auto insurance. This policy is similar to personal auto insurance, but it covers work vehicles specifically. Commercial auto insurance includes liability protection, and you can choose to add physical damage coverage, which pays for vehicle repairs in the event of a crash.
Solar panel installation businesses that work with contracts should consider a surety bond can be valuable. A surety bond serves as a guarantee that you will uphold the agreements outlined in a contract with a client, such as a timeline for completion. If you fail to uphold your end of the contract, your client can receive the surety bond, which is a fixed amount of money.
Excess Liability Insurance
General liability insurance policies have a coverage limit, which is the most amount of money your insurance company will provide in the event of a covered loss. While most liability policies have more than enough coverage for solar panel installation businesses, you have the option to buy an excess liability policy, also called umbrella insurance, for increased protection. If you have general liability insurance with $1 million in coverage, you can purchase an umbrella policy and get more liability coverage for your business.
Solar Panel Installer Insurance Cost
To keep your solar panel installer insurance policy in force, you pay a monthly or annual premium. The cost of your insurance policy depends on a few different factors, including:
- Where your business is located
- The number of employees you have
- The type of policy you purchase
- Your coverage limits and deductibles
When you apply for a quote, the insurance company looks at all of these factors to determine your premium. If you want to get a lower rate, you can consider adjusting your coverage limits and raising your deductible.
Every business pays a different amount for solar panel installer insurance. However, the average cost of business insurance for solar panel installers starts at $850 per year.