Michigan Sandblasting Contractors Insurance Policy Information
Michigan Sandblasting Contractors Insurance. Are you thinking about getting into the business of sandblasting contracting? If so, there are a lot of things that you need to take into consideration and attend to before you get your business up and running:
Where the headquarters of your business will be located, what type of equipment you will use, the specific services you provide, the clientele you are going to work with, and the number of employees that you are going to hire are just some of the things that you need to think about. However, there's something else that's just as important as all of these things; insurance.
MI sandblasting contractors clean buildings, structures, or other objects by shooting a pressurized mixture of abrasive materials, including sand, against the surface of the object. Sandblasting may be used to polish a surface, but most often is used to remove paint including graffiti, finishes, or corrosion from brick or metal surfaces. Typically, sandblasting is done off premises at job sites.
Every business owner, no matter the industry, needs to carry the right type of coverage. But why is insurance so important for sandblasting contractors and why type of Michigan sandblasting contractors insurance coverage do you need? Keep on reading to find out.
Michigan sandblasting contractors insurance protects your business from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.
Why Do Sandblasting Contractors Need Business Insurance Coverage?
As a MI sandblasting contractor, your job is to clean various types of surfaces using heavy machinery that propels abrasive agents. You need to have pinpoint precision to do an effective job, and you need to work in a relatively fast manner in order to get it done on-time. You also have to ensure that all of the techniques that are being used are safe and won't damage individuals or property. In other words, you have a lot of responsibility on your shoulders.
Even though you make every effort to do the best job possible and avoid mishaps, issues can arise. You could accidentally spray the wrong type of abrasive material onto a surface and damage it; an employee could be injured while he's working; someone could sue you, alleging that you didn't do the work you said you would.
Whatever the case may be, you could be looking at very hefty costs if something unexpected occurs. Those costs could be crippling and could damage your entire business if you have to pay for them out of your own pocket. That's why it's so important to invest in the right type of Michigan sandblasting contractors insurance. When the unthinkable happens, your insurance provider will help to cover the expenses so that you aren't left footing the bill.
What Type Of Insurance Should Michigan Sandblasting Contractors Have?
The specific type(s) of coverage you will need depend on the unique details of your business; where in MI you are located, the size of your sandblasting contracting business; how many employees you have; what type of machinery that you use; the services you provide, etc.
Therefore, to find out exactly what type of coverage you need, it's in your best interest to speak to a reputable agent so that you can make sure your business is well-protected. With that said, however, there are certain types of Michigan sandblasting contractors insurance that all contractors will need to carry, no matter what the specific details of their business may be:
- Workers Compensation - Even if you employ a staff of just a handful of people, you're going to need to carry workers' compensation insurance. Should an employee become injured while performing a service, this type of coverage will help to pay for the cost of his or her medical care; it will also assist with paying for any wages that he or she may miss while recovering.
- Commercial General Liability - You will also need to invest in commercial general liability insurance. This type of coverage protects you from any third-party bodily injury or property damage claims. For example, if you damaged a client's property - even if it was accidental - this type of insurance will pay for the repairs, as well as any legal fees that may arise if a lawsuit is filed against you.
- Commercial Equipment - The equipment you use to perform your sandblasting services isn't cheap, so you want to make sure that it is properly protected. With commercial equipment insurance, if your gear is stolen or damaged, whether it's on a job site, in a vehicle, or on the premises of your business, the cost of repairing or replacing the equipment will be covered by your carrier.
- Commercial Auto - You should also invest in commercial auto insurance, as this policy will cover your commercial vehicles if an accident occurs, which your personal auto policy will not.
These are just some of the forms of Michigan Sandblasting Contractors insurance coverage that should be considered. The specific type of coverage will vary from organization to organization and depends on a variety of factors; the size of the club and the nature of the activities that occur at the organization, for example.
MI Sandblasting Contractor's Risks & Exposures
Premises liability exposure is limited at the contractor's premises due to lack of public access. Equipment stored in an open yard may present an attractive nuisance to children and other trespassers. At job sites, exterior sandblasting can be a hazard to passersby, parked vehicles and nearby structures.
The area of operation should be restricted by barriers and proper signage for protection against falling objects, slips and falls. The interaction of sand or other blasting material and the surface it strikes can generate heat and perhaps cause chemical change resulting in fire or explosion. Paint and other material that is blasted off during the operation may contain toxic chemicals.
The silica (sand) contained in the overspray is abrasive to property, and can be severely hazardous if inhaled. The blasting operations are also loud, generating a nuisance hazard. Equipment and scaffolding left unattended at the jobsite are an attractive nuisance, so access by children must be prevented.
Completed operations liability exposures may result from hidden damage to the integrity of the surfaces the insured works on, such as the removal of more surface material than intended. Sand and other blasting materials may enter cracks and weaken the structure. In the case of metals, sandblasting may cause "fatigue" due to the weakening of rigidity. Claims may arise from failure to use the correct grade of sand or other medium, or blasting at the wrong angle or pressure.
Environmental impairment liability exposures may arise from the waste generated in the sandblasting process. Any job will entail stripping away of grime and other debris from the objects cleaned. Allowing waste to accumulate either at the job site or in the contractor's yard could cause a severe environmental impairment situation. The insured must use safe methods to collect, transport, and dispose of the waste.
Workers compensation exposures can be very high. The force of the overspray from sandblasting can result in abrasions and eye injuries. Dust can be silica-based, which can cause incurable lung injury or disease. The particles given off by certain metals can be toxic and cause serious injury. Cumulative exposure to high-decibel operations may result in permanent hearing impairment.
When work is done on ladders, cherry pickers and scaffolds, there is a potential for severe injury or death from falling, being struck by falling objects, or adverse weather conditions. The absence of good maintenance of scaffolds, proper use of basic safety equipment, such as properly installed guards, safety belts, steel-toed shoes, as well as hearing and eye protection, and strict enforcement of safety practices may indicate a morale hazard.
Back injuries, hernias, sprains and strains can occur from lifting and from setting up scaffolding and machinery, and from placing objects to be cleaned or polished into the blasting cabinets at the yard site. Workers may be injured in auto accidents during transportation to and from job sites.
Property exposures at the contractor's premises are generally limited to an office and storage of equipment, supplies and vehicles. If sandblasting is done on premises, fire or explosion potential exists from sparks or high temperatures created by the process. Adequate dust control and cooling are needed. There may be a garage area for vehicles transporting equipment and crew to job sites. Property stored outside may be a target for vandalism.
Crime exposures are from employee dishonesty, including theft of customers' goods. Background checks, including criminal history, should be obtained on each employee prior to hiring. Ordering, billing, and disbursement should be handled as separate duties with reconciliations occurring regularly. There should be appropriate procedures in place when employees accept payments off site.
Inland marine exposures include accounts receivable if the contractor offers credit to customers, contractors' equipment for supplies and equipment taken to customers' premises, and valuable papers and records for customers' and suppliers' information. Equipment may be subject to loss from theft, collision, overturn, and abrasive damage from overspray during operations. Scaffolding left on the jobsite overnight may be vandalized or stolen.
Business auto exposure generally includes driving to and from clients' premises with crew, equipment and supplies. Specialized vehicles, such as cherry pickers, or hauling large scaffolding may necessitate oversized or unsteady loads, with a high potential for collision or overturn. All drivers must be well trained and have valid licenses for the type of vehicle being driven. 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.
Sandblasting Contractor Insurance
The sandblasting contracting industry can be quite lucrative; however, there are certain risks that are associated with operating a business in this industry. To protect yourself from these perils, it is absolutely essential for you to invest in the right type of Michigan sandblasting contractors insurance coverage; furthermore, you need to make sure that you are carrying enough coverage.
You can find out exactly what type of coverage - and how much - you need by speaking to an experienced insurance broker. One of the best things you can do for your business is protect it with the right insurance.
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 Miscellaneous & Non-Profit Insurance
Find informative articles on miscellaneous businesses including the types of commercial insurance they need, costs and other considerations.
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An insurance contract is an agreement where one party obligates itself to make good the financial loss or damage sustained by a second party when a designated event occurs. The event must be fortuitous and happen by accident. The named insured must have insurable interest at the time of loss. One final point is that in order for any contract to be considered insurance, there must be a risk of loss.
Fortuitous Event - An occurrence largely beyond the control of any involved party; happening by chance; accidental; for example: fire, lightning, windstorm, explosion or flood.
Insurable Interest - In order to recover from a loss to property, the holder must have an insurable interest in the property at the time of the event or occurrence. An insurable interest is any right, title or interest in property where the holder of that right, title or interest sustains financial loss if the property is damaged or destroyed. Any lawful and substantial economic interest in the safety or preservation of the property from loss, destruction or damage also constitutes an insurable interest.
An entity does not have to be the property owner to have an insurable interest in it. Examples include, but are not limited to, mortgagees, trustees, vendors, lessees and bailees. Insurable interest for any entity must exist at the time the loss occurs.
Risk Of Loss - If property could never be destroyed, there is no risk of loss. If property must necessarily disintegrate or be destroyed, there is no risk of loss. Between these two extremes is the exposure of risk that can be insured.
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