House Painting Companies Need Business Insurance

Company insurance is intended to safeguard the financial assets of a firm owner and is a vital investment for a home painting business.

This article will discuss the primary insurance coverage for home painting enterprises, general liability insurance, as well as additional policies that are appropriate for this industry.

House Painting 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.

GENERAL LIABILITY INSURANCE MAY COVER COMMON SITUATIONS FOR A HOUSE PAINTING BUSINESS

Example 1: Your painter spills a can of paint all over the client’s floor during a house improvement job. They are suing you for the expense of replacing the floor as well as the cost of temporary accommodation while the renovation is being performed. Your general liability insurance should cover the losses as well as any legal expenses.

Example 2: A painting ladder is left out while on break, and the homeowner stumbles over it, breaking his wrist. A general liability coverage should cover their medical expenses as well as any other damages they may pursue.

Example 3: A paint deliveryman slips and falls on your shop’s recently scrubbed floor, injuring a knee tendon. General liability insurance should cover his medical bills as well as any legal fees you may incur.

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

House painting companies in America typically 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.

Other Types of Coverage Required by House Painting 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 home painting enterprises should have include:

Insurance for Inland Waterways

Contractors and construction experts that move from site to site with their equipment and tools need inland marine insurance. To guarantee sufficient coverage, examine the policy’s restrictions with your insurance provider, regardless of where your company property is used and kept.

Inland marine insurance is often included as part of a company owner’s coverage.

Insurance for Commercial Vehicles

If you are involved in an accident, commercial car insurance will cover the expense of repairing your vehicle. If you are at fault, it will also pay for damage to other cars as well as medical bills for anybody hurt.

Coverage Options for Some House Painting Businesses

In addition to the insurance listed above, your home painting company may need other forms of coverage based on particular features of your operations. Some of these may not apply to you, so make sure to ask your agent which policies are appropriate for your company.

Umbrella Insurance for Businesses

As a house painter, you may be working on very high-valued homes and businesses, exposing you to increased liability expenses. If a lawsuit is filed that exceeds the limits of your underlying general liability policy, you may be held personally liable for a portion of the damages. Commercial umbrella liability insurance provides an additional layer of protection by paying damages that exceed the limits of your primary policy.

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.