Company insurance is an important investment for a countertop business because it protects the financial assets of the business owner.
This article will discuss the primary insurance coverage for countertop companies, general liability insurance, as well as additional products that are appropriate for this industry.
Countertop Business General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
COMMON SITUATIONS FOR WHICH GENERAL LIABILITY INSURANCE MAY PROVIDE COVERAGE FOR A SMALL BUSINESS
Example 1: An employee slips a huge marble countertop onto a client’s foot while moving it. The collision fractures many of the client’s toes, and they sue you for compensation. General liability insurance would cover the client’s medical expenses as well as your legal fees.
Example 2: An employee slips while lifting a piece of granite countertop from a truck, and the granite lands on the windshield of a client’s automobile. The client’s car repair expenses would be covered by general liability insurance.
Example 3: A nearby home repair agency believes your company name is too similar to theirs and sues you for business loss. General liability insurance would cover the expenses of defending the lawsuit or settling it out of court.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
Countertop firms in America pay between $500 and $1,500 each year on general liability coverage of $1 million.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Countertop Businesses
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all countertop companies should have are listed below.
Insurance for Commercial Property
If you own the building where your company is located, you’ll need commercial property insurance to safeguard it against natural disasters, theft, and vandalism. This insurance would pay for the expense of restoring any structural damage to your facility as well as replacing any lost equipment and other business items, allowing you to recover fast.
Insurance for Professional Liability
Because you provide home repair and installation assistance, you’ll need professional liability insurance to cover any expenditures incurred as a result of carelessness or errors on the project. If a customer thinks that their countertop decision has a detrimental influence on the market value of their home, for example, this insurance will cover your legal fees in the case of a lawsuit.
Insurance for Product Liability
This insurance protects you against any accidents or injuries caused by your goods. If, for example, a client develops a skin issue as a result of the material you used, this insurance would cover the customer’s medical bills.
Insurance for Workers’ Compensation
Your staff may get a back or shoulder injury when working with hefty countertops. Workers’ compensation insurance is required in most states for both part-time and full-time employees. This coverage covers your workers if they are hurt at work or get sick as a result of a workplace accident. It covers not just an employee’s medical expenditures and missed pay if they need time off to recuperate, but also any disability or death benefits resulting from a work-related accident.
Insurance for Commercial Vehicles
Any car used mainly for business by you or your workers needs commercial auto insurance to safeguard the vehicle, driver, and others on the road in the case of an accident. Choose a policy that covers not just accident-related vehicle repair expenses and medical care for anybody harmed, but also enough coverage for any business-related equipment or supplies you transport in your cars.
Coverage Options for Some Countertop Businesses
In addition to the insurance listed above, your countertop company may need other forms of coverage based on key elements of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Umbrella Insurance for Businesses
While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.