Drywall Contractor Insurance Policy Information
Drywall Contractor Insurance. Drywall contractors install drywall, plaster, and wallboard to the interior walls and ceilings of residential and commercial buildings for decoration, insulation, waterproofing, soundproofing, or fireproofing the room or area. Exterior work may consist of applying stucco, cement or similar materials to decorate or finish the outside walls.
Drywall contractors are tradesmen who carry out a specific function (drywall hanging, installing studs in preparation of rock hanging, and ceiling installations for renovation and new work. Drywall contractors, like other specialty contractors, are exposed to many risks at the job site. Getting a comprehensive contractors insurance policy package is the first step in the quest to secure financial protection in the event of work-place accident.
Hanging drywall, taping, and then applying mud to-drywall is a skill learned over time, requiring training and experience. Drywall installers are almost always exposed to injuries that can lead to significant medical expenses as well as lost wages for employees in case an accident occurs. The smartest move a drywall contractor can make is to ensure they are properly protected with an-adequate drywall contractor insurance insurance policy.
Drywall contractor insurance protects your business from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked drywall contractor insurance questions:
- What Is Drywall Contractor Insurance?
- How Much Does Drywall Contractor Insurance Cost?
- Why Do Drywall Contractors Need Insurance?
- What Type Of Insurance Do Drywall Contractors Need?
- What Are Drywall Contractors Risks & Exposures?
- What Does Drywall Contractor Insurance Cover & Pay For?
What Is Drywall Contractor Insurance?
Drywall contractor insurance is a type of insurance that is specifically designed for businesses that provide drywall installation and repair services. This type of insurance typically includes coverage for property damage, liability, and workers' compensation.
It may also include coverage for equipment breakdown, business interruption, and additional endorsements such as pollution liability or professional liability.
The purpose of drywall contractor insurance is to protect the business and its employees from financial losses due to accidents, errors, or other unforeseen events that may occur during the course of their work.
How Much Does Drywall Contractor Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small drywall businesses ranges from $47 to $59 per month based on location, size, payroll, sales and experience.
Why Do Drywall Contractors Need Insurance?
Drywall contractors need insurance for a variety of reasons. Firstly, insurance provides financial protection in case of unexpected accidents or injuries that may occur on the job. For example, if a drywall contractor accidentally drops a heavy piece of equipment on someone's foot, the resulting medical expenses and potential legal fees could be financially devastating without insurance.
Secondly, drywall contractors insurance can protect against liability claims. If a customer or third party alleges that the drywall contractor's work caused damage to their property or caused them harm, insurance can cover the costs associated with defending against such claims and any potential settlements or judgments.
Finally, insurance can help drywall contractors maintain a professional image and build trust with their customers. Customers are more likely to trust and do business with contractors who are fully insured, as it demonstrates that the contractor takes their responsibilities and the potential risks of their work seriously.
In summary, insurance is an important tool for drywall contractors to protect themselves, their employees, and their customers against unexpected accidents, injuries, and liability claims. Without insurance, drywall contractors risk financial ruin and damage to their reputation.
What Types Of Insurance Do Drywall Contractors Need?
There are a wide variety of drywall contractor insurance options. Generally, a drywall contractor will need a number of different coverage policy parts or insurance covers to adequately cover the kinds of risk and exposure inherent to being a drywall contractor at their workplaces. Here are common insurance coverages for drywall contractors:
- General Liability Insurance: General liability for drywall contractors comprises of three areas of coverage: products liability, premises liability, and completed operations. If a customer visits your office and they happen to trip over a power tool set next to the door, their bodily injuries can be covered by premises liability. On the other hand, completed operations covers any damages owing to completed drywall-work, after the work is already done.
- Bond: A surety bond is a monetary guarantee to the licensing department of your state and your customer just in case you fail to complete a task according to your bid. It'll also typically be needed in order to receive a permit and license to operate in your state.
- Workers Comp: Workers compensation insurance pays for hospitals, doctors, prescription drugs, lost wages and other related medical or recovery costs if one of the employees gets injured on the job. Most states require require workers compensation for any non-owner or partner employees.
- Crime Insurance: This is an important policy for your business as it protects against crimes like vandalism, theft, and other fraudulent activity. Vandalized property, losses when services get paid with a stolen credit card, or stolen items are covered by crime insurance.
- Umbrella Policy: Liability insurance plan for drywall contracting businesses provides great coverage, but have limits, whether it is general liability or property insurance. This is business insurance coverage for worst case scenarios. In case your standard business insurance covers reach their maximum payout limits, then an umbrella policy can offer you with additional coverage.
What Are Drywall Contracting Risks & Exposures
Premises liability exposures at the contractor's office are generally limited due to lack of public access. Off-site exposures include damage to the clients' other property by the contractor's employees, bodily injury to members of the household, the public or employees of other contractors. Tools, power cords, plastering materials and scrap all pose trip hazards even when not in use. If there is work at heights, falling tools or supplies may cause damage and injury if dropped from ladders and scaffolding. Contractors can damage customers' premises removing old ceiling and wall coverings.
Completed operations liability exposures depend on the type of plastering being done. If the plastering is for waterproofing or fireproofing, faulty installation can result in significant property damage, and in the case of fireproofing, loss of life. A growing concern is the installation of exterior insulation and finish systems (EIFS). This refers to a synthetic stucco with insulating properties that has recently been blamed for causing moisture and termite problems affecting the structural integrity of a residence. It is not clear whether the manufacturer or the installer has the greater liability.
Environmental impairment liability exposures arise from the removal, transport, and disposal of waste and old debris that has been removed from the job site. As some of these older materials may include lead-based paints or asbestos, proper disposal procedures must be in place. Transportation and disposal procedures must adhere to all EPA and other regulatory standards. Training and supervision of employees is critical.
Workers compensation exposure varies based on the size and nature of the job. When work is done on ladders and scaffolds, there is a potential for severe injury or death from falling or being struck by falling objects, or from severe weather during exterior operations. Drywall installation may involve the use of low stilts in the mudding and taping phases.
Back injuries, hernias, sprains and strains can result from lifting or plastering in awkward positions. Repetitive motion injuries may occur. Drywall and wallboard need to be cut to size, which can result in cuts and piercings. Dust cutting, trimming, and mixing operations can irritate eyes and lungs.
Property exposures are usually limited to an office and storage for supplies, tools and vehicles. Most supplies are not flammable or combustible, nor are they normally considered target theft items.
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 plasterer offers credit to customers, contractors' equipment and tools, goods in transit, installation floater, and valuable papers and records for customers' and suppliers' information. Equipment may be limited to trowels, spray guns, and other hand tools, or there may be ladders, scaffolding, and similar equipment.
The contractor may rent, lease or borrow equipment for unusual jobs or own special equipment that is leased, rented or loaned to others when not in use. The materials awaiting installation are subject to loss or damage by moisture, by employees of other contractors, vandalism, and theft.
Commercial auto exposures include the transportation of workers, equipment, and materials to and from job sites. 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.
What Does Drywall Contractor Insurance Cover & Pay For?
Drywall contractors may be sued for a variety of reasons, including but not limited to:
- Property damage: If a drywall contractor accidentally damages a client's property, they may be sued for the cost of repairs or replacement.
- Bodily injury: If a client or a third-party suffers an injury on the job site, the drywall contractor may be sued for medical expenses, lost wages, and other related costs.
- Breach of contract: If a drywall contractor fails to complete the work according to the agreed-upon terms, the client may sue for breach of contract.
- Negligence: If a drywall contractor fails to take reasonable care in performing their duties, resulting in damage or injury, they may be sued for negligence.
Insurance can help protect drywall contractors from these lawsuits. Here are some examples:
General liability insurance: This type of insurance can protect drywall contractors from claims of property damage and bodily injury. If a drywall contractor accidentally damages a client's property or a third-party suffers an injury on the job site, general liability insurance can help cover the cost of legal fees, settlement, and damages.
Professional liability insurance: Also known as errors and omissions insurance, professional liability insurance can protect drywall contractors from claims of negligence and breach of contract. If a drywall contractor fails to perform their duties according to professional standards or breaches the contract, this insurance can help cover the cost of legal fees, settlement, and damages.
Worker's compensation insurance: This type of insurance can provide financial assistance to drywall contractors who suffer a job-related injury or illness. It can help cover medical expenses, lost wages, and other related costs.
It's important for drywall contractors to have the appropriate insurance coverage to protect themselves and their business from unexpected lawsuits. It can also help give clients peace of mind knowing that they are working with a contractor who takes their responsibilities seriously and is prepared for potential risks.
Commercial Insurance And Business Industry Classification
- SIC CODE: 1742 Plastering, Drywall, Acoustical, and Insulation Work, 1771 Concrete Work
- NAICS CODE: 238310 Drywall and Insulation Contractors
- Suggested Workers Compensation Code(s): 5480 Plastering NOC & Drivers, 5022 Masonry NOC, 5445 Wallboard, Sheetrock, Drywall, Plasterboard, or Cement Board Installation - Within Buildings & Drivers
Description for 1742: Plastering, Drywall, Acoustical, and Insulation Work
Division C: Construction | Major Group 17: Construction Special Trade Contractors | Industry Group 174: Masonry, Stonework, Tile Setting, And Plastering
1742 Plastering, Drywall, Acoustical, and Insulation Work: Special trade contractors primarily engaged in applying plain or ornamental plaster, including the installation of lathing and other appurtenances to receive plaster, or in drywall, acoustical, and building insulation work.
- Acoustical work-contractors
- Ceilings, acoustical installation-contractors
- Drywall construction-contractors
- Insulation installation, buildings-contractors
- Plastering, plain or ornamental-contractors
- Solar reflecting insulation film-contractors
- Taping and finishing drywall-contractors
Description for 1771: Concrete Work
Division C: Construction | Major Group 17: Construction Special Trade Contractors | Industry Group 177: Concrete Work
1771 Concrete Work: Special trade contractors primarily engaged in concrete work, including portland cement and asphalt. This industry includes the construction of private driveways and walks of all materials. Concrete work incidental to the construction of foundations and concrete work included in an excavation contract are classified in Industry 1794; and those engaged in construction or paving of streets, highways, and public sidewalks are classified in Industry 1611.
- Asphalting of private driveways and private parking areas-contractors
- Blacktop work: private driveways and private parking
- Concrete finishers-contractors
- Concrete work: private driveways, sidewalks, and parking areas
- Culvert construction-contractors
- Curb construction-contractors
- Foundations, building of: poured concrete-contractors
- Grouting work-contractors
- Gunite work-contractors
- Parking lot construction-contractors
- Patio construction, concrete-contractors
- Sidewalk construction, except public-contractors
- Stucco construction-contractors
Drywall Contractor Insurance - The Bottom Line
Our drywall contractor insurance contractor packages are developed by identifying special needs, as well as potential exposures that you as a drywall contractor may face on a day-to-day basis. Our drywall contractor insurance covers are designed for your growing business.
Through monitoring changes in the construction industry, we've developed insurance packages that take into account current new trends in construction, offering you with the peace of mind that you deserve to perform your work with excellence. This means you can worry less about exposure to risk, and focus more on growing the business.
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
- Tank Cleaners
- Tool Grinding And Repair
- Tree Surgeon
- Tree Trimming
- Upholstery Shop
- Waste Haulers & Garbage Collection
- Water Well Drilling
- Welding Contractor
- Wildlife & Pest Control
- Window Cleaning
- Specialty Contractors
The contracting industry is a field that involves a lot of risks, both for the contractor and for the clients they work for. This is why commercial insurance is so important for contractors. Insurance can protect contractors from a variety of potential losses, such as:
Liability: If a contractor causes damage to a client's property or if a client is injured while on a job site, the contractor could be held legally responsible. Liability insurance can cover legal fees and any settlements or judgments that may be awarded.
Property damage: Contractors often use a lot of expensive equipment and tools, and there is always a risk that this equipment could be damaged or stolen. Commercial property insurance can help cover the cost of replacing damaged or stolen equipment.
Business interruption: If a contractor is unable to work due to an unforeseen event, such as a natural disaster, insurance can help cover their lost income during this time.
Workers compensation: If a contractor or one of their employees is injured on the job, worker's comp can help cover medical expenses and lost wages.
Overall, commercial insurance is an important risk management tool for contractors. It can provide financial protection against a wide range of potential losses, helping contractors to stay in business and continue serving their clients.
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.