Michigan Flooring Contractor Insurance Policy Information
Michigan Flooring Contractor Insurance. Commercial insurance is an expense that is a necessary part of doing business. Floor installers and refinishers cut and lay subflooring in new structures and strip, sand, and paint, stain or varnish existing wood floors in residential or commercial buildings. This type of operation does not include the installation of floor coverings such as linoleum, tile or carpeting. For new structures, installers cut and lay subflooring over a structural frame, install hardwood flooring, and apply layers of paint and/or varnish.
Every business regardless of what it is that they do, needs insurance to protect them from liability due to accidents, lawsuits from employees or clients, and any other type of potentially crippling expense.
Insurance is all about protecting you against the unknown. When you pay your premium you are basically paying for protection from things that could have a major negative impact on your business and could potentially even cause your business to fail. Will you ever have to use your flooring contractor insurance? Maybe, maybe not, but if you need it and don't have it then you are going to be in a major financial bind. When looking at Michigan flooring contractor insurance, you should consider the following things as necessary coverage that your business needs to have.
Michigan flooring contractor insurance protects your business from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Types Of Michigan Flooring Contractor Insurance
- Commercial General Liability Insurance: This type of insurance will protect against injuries to third parties, or damage to property, while your flooring company is working. This means that if your crew damages a building then you have insurance that will cover the repair costs. It also means that should someone be in your work zone that is not employed by your company, and they suffer an injury as a result, your Michigan flooring contractor insurance will cover their medical bills. Commercial liability insurance will also cover you in the event that you recommend and install flooring that turns out to be defective. Since this type of flooring contractor insurance is so important any person or company that hires you to work on one of their properties will likely ask you for proof of this insurance before you are allowed to start work.
- Employment Practices Liability Insurance: This type of insurance is in place to protect your business should a former employee decide to fire a lawsuit against you claiming unfair termination, discrimination, or harassment. In this day and age people tend to file lawsuits on a pretty frequent basis so the last thing you want is to have a former employee with a grudge end up costing you a lot of money out of pocket.
- Auto Liability Insurance: If you own a flooring contractor business then you are going to need company vehicles in order to get to the work site, transport materials to the work site, and also to transport tools and equipment to the work site. That means that you are going to need liability insurance on any of your company vehicles to protect you in case of any accidents. When one of your company cars gets into an accident that is the fault of one of yourself or an employee then your company is going to be liable for any injuries or damage. Unless you want to worry about someone suing your company and bankrupting you then you need auto liability insurance.
- Non Owned Vehicle Insurance: If your employees operate their own vehicles for work purposes, and they are involved in an accident, then your business could potentially be held liable. If someone is hurt by one of your employees in a car accident, and they file a lawsuit, then there's a good chance that their attorney will be coming after your business. It's simply good strategy for them to go after the person with the deepest pockets, and it this case it's you and your business.
- Worker's Compensation: Worker's compensation is one of the most important types of insurance that you are going to want to have if you are a business owner. If someone working for you gets hurt then their medical bills and lost wages are going to be your responsibility to handle. Medical bills can be very expensive, and on top of that if your employee suffers some type of permanent disability as a result of their accident you may be looking at a very large sum of money that you will have to pay out for them. Worker's compensation insurance will protect you from this very scenario - and it is required in most states for any non-owner or partner employees.
- Umbrella Insurance: Umbrella insurance is additional insurance that you get that provides additional coverage for you regarding all aspects of your insurance coverage. This is meant to protect you in the event that you have a liability that exceeds the maximum payout that your policy provides.
Talk to a professional commercial insurance agent to find the best-fit policy for you unique situation.
MI Flooring Contractor's Risks & Exposures
Premises liability exposures at the contractor's shop or office are generally limited due to lack of public access. Fires or fumes from woodworking and/or lumber storage operations can spread to neighboring businesses or homes. Outdoor storage may create vandalism and attractive nuisance hazards.
Off-site exposures are moderate. Jobsite operations include the potential for bodily injury to the public and to other contractors' employees and damage to their property or completed work. Tools, power cords, building materials and scrap all pose trip hazards even when not in use. The use of saws and other power or hand tools is inherently hazardous due to sharp edges and moving parts. The area of operation should be restricted.
In enclosed structures, the buildup of dust and scraps can result in catastrophic fire and explosion. Disposal of waste materials (dust, scrap, varnishes or paints) could create an environmental hazard. There may be significant subcontractor and other contractual liability exposures.
Completed operations liability exposures are high if the flooring contractor builds the floors on which the customer's operations take place due to the potential for collapse. Quality control and full compliance with all construction, material, and design specifications are necessary. Inadequate monitoring of work orders and change orders may be a concern. Poor record-keeping may necessitate payment of otherwise questionable claims. Inspection and written acceptance of the work by the owner or general contractor is critical.
Workers compensation exposures vary based on the size and nature of the job. Work with hand tools and sharp objects such as saws and nails can result in cuts, piercings, and accidental amputation. Back injuries, hernias, strains, and sprains can result from lifting. Work at floor level for extended periods of time can result in injuries to knees. Minor injuries may be frequent even when the severity exposure is controlled.
Absence of basic safety equipment, such as properly installed guards, steel toed shoes, and eye protection may indicate a morale hazard. Employees must be carefully selected, trained and supervised. Occupational diseases can result from exposure to noise, dust, and chemicals used in the finishing process.
Property exposures are usually limited to an office and storage for supplies, tools and vehicles. The storage of lumber, paints, finishes, varnishes, and shellac combined with the dust from the cutting of the lumber or wood can create a high fire and explosion exposure. Labeling, separation, proper storage of flammables, and adequate aisle space reduce the exposure.
Crime exposures are from employee dishonesty. Background checks, including criminal history, should be performed on all employees providing services to customers or handling money. All ordering, billing and disbursement should be handled as separate duties with reconciliations occurring regularly.
Inland marine exposures include accounts receivable if the floorer offers credit to customers, contractors' tools, goods in transit, installation floater and valuable papers and records for customers' and suppliers' information. Equipment at a job site can be damaged by drops from heights, weather damage, or being struck by vehicles. Equipment and supplies left at job sites are subject to theft and vandalism.
Flooring in transit is vulnerable to damage from dropping, breakage, shifting and collision and overturn. Improper loading or inadequate tie down poses a serious loss potential. Oversized loads can be damaged by collision with stationary structures or other vehicles. The installation floater exposure varies depending on whether the contractor delivers the flooring or has them drop shipped to the jobsite. The contract with the client should state who is responsible for the flooring during transit and storage.
Business auto exposures are limited unless lumber and pre-made items are transported by the installer. MVRs must be run on a regular basis. Random drug and alcohol testing should be conducted. Vehicles must be well maintained with records kept in a central location. Hazards of transport include failure to secure the load properly and equipment failure, especially tie-downs and hitches. If oversized items are transported, vehicles should be clearly marked.
Michigan Economic Data And Business Insurance Requirements
Business owners who are interested in establishing operations Michigan must have a thorough understanding of the state's economy. They should also familiarize themselves with any regulations and limits that state may have in place for commercial insurance.
Any entrepreneur who is thinking about starting a business in the Great Lake State first needs to determine if it's a feasible location for business operations. As such, it's important to have a keen understanding of pertinent details regarding the economy of Michigan, in addition to the types of insurance coverage that are mandatory for corporations that operate within the state.
Economic Trends for Businesses In Michigan
After a long period of stagnant job growth in the early part of the 21st century, MI has been experiencing a steady increase in employment gains. Between 2009 and 2018, the state has enjoyed a period of uninterrupted job growth; the longest stretch of job growth since World War II. According to economists at the University of Michigan. While there has been a slight decline in the rate of job growth, job creation continues and forecasters say will continue for the next two years, into 2021.
In 2018, an estimated 55,200 jobs were created; in 2019, it's expected that 35,800 jobs will be created, and in 2020, economists believe that there will be a total of 39,300 jobs created in Michigan. While that rate of growth is 1.9 percent slower than the job growth rate between 2011 and 2016, it is still a steady increase overall. In total, approximate 683,200 jobs will be created in MI between 2099 and 2020; almost four out of the five jobs that were lost during the early part of the 21st century will be recovered.
While the unemployment rate has steadily improved, it is still above the national average. In March of 2019, the national unemployment rate was 3.8 percent, while in the state of Michigan, it was 4.0 percent. Mid-Michigan has experienced the largest growth rate in the state, and according to forecasters, it looks like that trend will continue, moving forward. Industries that are expected to see the most growth include:
- Energy, due largely to research and development in clean energy
- Food and agriculture
- Transportation and mobility
- Healthcare industry
- Information and technology
In the state of MI, business owners are not legally required to carry liability insurance; but most entrepreneurs opt to invest in a General Liability or Business Owner's Policy (BOP). A commercial auto insurance policy is also required for any businesses that use motor vehicles to conduct any aspect of their business operations. Workers' compensation insurance is also required for any businesses with non-owner employees. While the following forms of coverage are not required, depending on the type of business you operate, they are recommended:
- Data breach insurance
- Business income insurance
- Commercial Umbrella insurance
Additional Resources For Contractors & Home Improvement Insurance
Learn about small business contractor's insurance, including what it covers, how much it costs - and how commercial insurance can help protect your contracting business from lawsuits.
- Air Conditioning Systems Installation Repair
- Appliance Repair & Service
- Blacksmith & Metal Workers
- Boat Repair & Dry Docks
- Boiler Contractors
- Builders Risk
- Building Cleaning & Maintenance Services
- Cabinet Installer
- Cable And Satellite TV Installer
- Chimney Sweep
- Cistern Contractors
- Contractor Liability
- Curtain Cleaners
- Deck Builders
- Door And Window Installers
- Dryer Vent Cleaning
- Drywall Contractor
- Electrical Contractors
- Environmental Remediation Contractors
- Fence Installation
- Fire Sprinkler Contractors
- Fire & Water Restoration Contractors
- Flooring Contractor
- Furniture Repair
- Garage Door Installer And Repair
- General Contractors
- Glass Contractor
- Glazier Insurance
- Gutter Installation And Repair
- House Cleaning
- HVAC Contractor
- Insulation Contractor
- Janitorial Cleaning Services
- Lawn Care
- Lawn Irrigation Sprinkler System Installation
- Oil And Gas Well Drilling Contractors
- Paperhanging Contractors
- Plastering And Stucco Contractor
- Pressure Washing Contractors
- Propane And Fuel Dealers
- Rug, Upholstery & Carpet Cleaning
- Sandblasting Contractors
- Security Alarm
- Septic Tank Cleaning
- Siding Contractor
- Sign Installation & Repair
- Solar Panel Installers
- Snow Plow
- Stone And Tile Installer
- Surety Bonds
- Swimming Pool Contractor
- Swimming Pool Service And Maintenance
- Tool Grinding And Repair
- Tree Surgeon
- Tree Trimming
- Tank Cleaners
- Upholstery Shop
- Waste Haulers & Garbage Collection
- Water Well Drilling
- Welding Contractor
- Wildlife & Pest Control
- Window Cleaning
A contractor that wants to begin or stay in business, liability coverage must be obtained for the premises or operations, off-site locations and products/completed operations exposures. These coverages may be included as a part of a businessowners policy (BOP) or purchased in a commercial general liability (CGL) policy. Owners and contractors protective liability and railroad protective liability coverages may also be required in certain cases in order for a contractor to obtain a particular job.
Physical damage coverage for tools, supplies and equipment, both on and off the contractor's premises, is a concern. Liability exposures at the premises of the contractor, and at the premises of the contractor's customer, must be properly addressed along with completed operations. Business insurance is very important as is workers compensation insurance protection for employees.
Contractors may work under a general contractor as a subcontractor in larger construction projects - like a new commercial site or residential subdivision. They can work on smaller projects directly with a home owner, usually specializing in renovations or remodels.
In business insurance speak, often called 'artisan contractors' or 'casual contractors', they are involved in many aspects of construction and contracting work – and include various trades and skills. Carpenters, painters, plumbers, electricians, roofers, tree trimmers, landscaping are just a few examples. They may do roofing, fencing, drywall, tile work and many other trades that involve skilled work with tools at the customer's premises.
An artisan contractor performs a single trade or job, and each has its own specialized liability needs with its own exposures to risk and accidents. Contractors liability insurance can offer coverage for bodily injury, property damage, advertising injury and medical payments.
Most artisan contractors should have commercial general liability at the very least, but many need broader coverages - like an umbrella to increase their limits of liability, inland marine policy to protect their tools, workers compensation if they have employees, and even commercial auto if they use vehicles for business purposes.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Contractors' Equipment and Tools, General Liability, Employee Benefits Liability, Umbrella Liability, Automobile Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivable, Builders Risk, Computers, Goods in Transit, Installation Floater, Valuable Papers and Records, Cyber Liability, Employment-related Practicesand Stop Gap Liability.
Request a free Michigan Flooring Contractor insurance quote in Adrian, Allen Park, Allendale, Ann Arbor, Auburn Hills, Battle Creek, Bay City, Berkley, Beverly Hills, Big Rapids, Birmingham, Burton, Cadillac, Clawson, Coldwater, Cutlerville, Dearborn, Dearborn Heights, Detroit, East Grand Rapids, East Lansing, Eastpointe, Escanaba, Farmington, Farmington Hills, Fenton, Ferndale, Flint, Forest Hills, Fraser, Garden City, Grand Haven, Grand Rapids, Grandville, Grosse Pointe Park, Grosse Pointe Woods, Hamtramck, Harper Woods, Haslett, Hazel Park, Highland Park, Holland, Holt, Inkster, Ionia, Jackson, Jenison, Kalamazoo, Kentwood, Lansing, Lincoln Park, Livonia, Madison Heights, Marquette, Melvindale, Midland, Monroe, Mount Clemens, Mount Pleasant, Muskegon, Muskegon Heights, New Baltimore, Niles, Northview, Norton Shores, Novi, Oak Park, Okemos, Owosso, Pontiac, Port Huron, Portage, Riverview, Rochester, Rochester Hills, Romulus, Roseville, Royal Oak, Saginaw, Sault Ste. Marie, South Lyon, Southfield, Southgate, St. Clair Shores, Sterling Heights, Sturgis, Taylor, Traverse City, Trenton, Troy, Walker, Warren, Waverly, Wayne, Westland, Wixom, Woodhaven, Wyandotte, Wyoming, Ypsilanti and all other MI cities & Michigan counties near me in The Great Lakes State.
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