Professional service providers, such as painting contractors, need to protect themselves against legal fees, work-related losses as well as medical bills. In case of lawsuits against a contractor for his employees’ negligence, a proper painters insurance coverage is required to protect his assets.
Types of insurance coverage for painters
Setting up your business takes hard work and you do not want to put it at risk. Even if you are just starting out, you need a painters insurance policy to protect your business and yourself. There are several types of insurance for painters/painting contractors, and here are the essential ones.
General liability insurance
This is for protection against property damage and bodily injury claims. It’s your protection against claims by customers for damages caused by you, your painter or your services and products to customers’ property or to other people. It can also protect you against false advertising claims and slander.
This protects company and employee-owned vehicles used for work. The amount of vehicle insurance required depends on state requirements. Typically, this is included in the business owner’s insurance policy.
Business owner’s insurance policy
This is a combination of coverages to include loss of income, tangible personal property, commercial real estate and general liability. It can also be extended to include electronic data recovery and identity theft. It can pay for the following:
- Business interruption insurance. When property is lost, for example, due to theft, the insurance pays for the lost revenue for up to one year.
- Property insurance. This insurance pays when there is damage to your equipment and property.
- Medical payments. This is used when other people are injured on the property you own or rent.
- Commercial vehicle insurance. This insures the vehicles you use for your business.
The business owner’s insurance policy is recommended for business owners withabout $5 million in sales and less than 100 employees. It is advantageous to small business owners because the premium is lower than when you take out separate insurance for each component. Do note that you can still take out a painters insurance policy in addition to business owner’s insurance.
The cost of the business owners policy or BOP depends on state requirements, the number of vehicles you rent or own, the number of employees you have, and if you are a contractor for painting exteriors or interiors of homes and buildings.
This is required by state law, especially for owners of small businesses. The insurance covers job-related injuries suffered by employees. It is also the business owner’s protection against negligence lawsuits filed by employees.
Know your responsibilities as a business owner and a painting service provider. Research your options on how to best protect your business and your employees. Take the time to compare insurance quotes from different insurance agencies. Find the right agent and painters insurance package that will suit your business.