Business insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a fence company.
This article will discuss the primary insurance coverage for fence businesses, general liability insurance, as well as additional products that are appropriate for this industry.
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Fence Companies 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.
Situations That A Fence Company’s General Liability Insurance May Cover
Example 1: A malfunctioning automated gate shuts too quickly, damaging the customer’s leg. General liability insurance may cover any medical costs and legal fees incurred as a result of the occurrence, regardless of whether the gate was incorrectly placed or merely malfunctioned.
Example 2: The homeowner chooses to assist in the construction of the fence. They damage their back when they take up the tool and try to utilise it. Your general liability insurance coverage may cover the non-accidental employee’s harm. If the claim is granted, your insurance will assist pay for any medical expenditures and/or litigation resulting from the occurrence
Example 3: The construction of the fence damages the neighbor’s property. If a piece of equipment or material falls through the fence and destroys a neighbor’s property, your general liability insurance may cover the cost of restoring the damage. If the neighbour chooses to sue, the insurance may pay any legal fees as well as any judgements or settlements linked to the case.
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
The typical American fence business pays 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.
Other Types of Coverage Required by Fence Companies
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 fence businesses should have are as follows:
Insurance for Commercial Vehicles
Commercial car insurance protects you against financial loss if your work vehicle is damaged in an accident or if you collide with another vehicle or item while travelling for business. If you are determined to be at fault, this sort of insurance may pay for repairs and/or replacement of your work vehicle, physical injuries to you, the other driver, or passengers, and damage to the other person’s car or property.
Umbrella Insurance for Businesses
Insurance coverage for businesses may not usually cover the whole cost of an event or accident. When this occurs, you’ll need business umbrella insurance to cover the remaining expenses of the accident or event.
Insurance for Workers’ Compensation
Your workers may sustain injuries on the job from time to time, such as a back injury, a nasty cut, or a slip and tumble. Workers’ compensation pays for medical expenses incurred as a result of the injury.
Coverage Options for Some Fence Companies
In addition to the insurance listed above, your fence business may need other forms of coverage based on key parts 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.
Policy of the Business Owner
If available in your region, business owner’s plans combine general liability insurance, property owner’s insurance, and maybe additional kinds into a single policy.
Insurance for Commercial Property
Any fence contractor who houses their equipment and supplies in a brick and mortar business site should consider purchasing commercial property insurance. These insurance cover weather-related, fire-related, and vandalism-related damage to the structure and stored equipment.
Employee Dishonesty Insurance
Employee dishonesty insurance protects you against employee theft of supplies, equipment, money, and other assets from your company or jobsite.
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.