Company insurance is intended to safeguard the financial assets of a service owner and is a necessary investment for a chimney sweep business.
This article will discuss the primary insurance coverage for chimney sweeps, general liability insurance, as well as additional products that are appropriate for this industry.
Chimney Sweeps Need 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.
GENERAL LIABILITY INSURANCE MAY COVER COMMON SITUATIONS FOR A CHIMNEY SWEEP BUSINESS
Example 1: An employee ruins a chimney while working at a client’s house. The customer sues because the damage necessitates the replacement of a portion of their roof. Your legal expenses and any damages obtained in the case would be covered by general liability insurance.
Example 2: While meeting with a customer, you leave your cleaning equipment and ladder out, and the client’s kid stumbles over your equipment and breaks his arm. The accident necessitates an emergency room visit as well as multiple follow-up treatments, prompting the client to sue for reimbursement of his son’s medical expenses. General liability insurance would cover these medical expenses as well as any legal bills incurred as a result of the case.
Example 3: Your marketing manager launches a new ad campaign with a new tagline. A rival initiates a lawsuit because your new motto is similar to theirs. Your legal expenses and any damages awarded to the claimant would be covered by general liability insurance.
Example 4: You’re thinking of franchising your firm and realise you’ll need a bank loan to handle the related expenditures. Your bank requires you to carry at least $1 million in general liability insurance as part of the loan conditions.
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
In America, chimney sweeps pay between $500 and $1,500 per year for $1 million in general liability insurance.
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.
Chimney Sweeps Require Additional Coverage
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 chimney sweeps should have are as follows:
Insurance for Commercial Property
In the case of a fire, burglary, or natural catastrophe, you are liable for any business-related items stored in the premises from which you operate. After an accident, commercial property insurance would cover the expense of repairing or replacing your building, unique equipment, and other company supplies, allowing you to recover fast.
Commercial property insurance is often available as part of a company owner’s policy (BOP).
Endorsement for Specialty Property Insurance Coverage
Many commercial property insurance plans exclude or restrict coverage for items taken from the premises of your company. With this endorsement, you may secure your company’s property whether it is in transit or at the house of a customer. This endorsement also covers business interruption and employee theft coverage.
Coverage Options for Some Chimney Sweeps
In addition to the insurance described above, your chimney sweep company may need other forms of coverage based on particular features of your operations. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Commercial Vehicles
Traveling to and from client locations increases your exposure to motor liability risks. In the case of an accident, any car you use mainly for work needs commercial auto insurance to cover the vehicle, driver, and others on the road. Choose a policy that covers not just accident-related vehicle repair expenses and medical care for anybody harmed, but also enough coverage for any particular equipment you have in your cars. Consider getting coverage that is more than the state-mandated minimum to protect your company from the unexpected.
Commercial vehicle insurance may be purchased as part of a business owners policy (BOP) or as a separate policy.
Insurance for Workers’ Compensation
Because chimney sweepers labour away from the office, they are exposed to several dangers that are beyond their control. 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. Your coverage should also cover your legal bills if an employee sues your company for further damages.
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.