Flooring Contractor Insurance Policy Information
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 flooring contractor insurance, you should consider the following things as necessary coverage that your business needs to have.
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.
Below are some answers to commonly asked flooring contractor insurance questions:
- What Is Flooring Contractor Insurance?
- How Much Does Flooring Contractor Insurance Cost?
- Why Do Flooring Contractors Need Insurance?
- What Type Of Insurance Do Flooring Contractors Need?
- What Are Flooring Contractors Risks & Exposures?
- What Does Flooring Contractor Insurance Cover & Pay For?
What Is Flooring Contractor Insurance?
Flooring contractor insurance is a type of insurance specifically designed for businesses that install, repair, or maintain flooring in commercial or residential properties. This type of insurance typically includes coverage for property damage, liability, and worker's compensation.
It may also include coverage for equipment and materials, as well as protection against job-site accidents and injuries. The exact coverage may vary depending on the specific policy and the needs of the contractor.
How Much Does Flooring Contractor Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for flooring installation and repair businesses ranges from $37 to $59 per month based on location, size, payroll, sales and experience.
Why Do Flooring Contractors Need Insurance?
Flooring contractors need insurance for a number of reasons. First and foremost, it protects them financially in the event of an accident or injury on the job. If a worker is injured while installing flooring, the medical bills can be significant. Insurance can cover these costs and help the contractor avoid financial ruin.
Additionally, insurance protects contractors from liability claims. If a customer is unhappy with the quality of the work or if there is damage to the property during the installation process, they may file a liability claim against the contractor. Insurance can cover the cost of these claims and protect the contractor's financial well-being.
Insurance is also important for protecting contractors from potential lawsuits. If a customer or worker decides to take legal action against the contractor, insurance can cover the cost of legal fees and any settlements or judgments.
Finally, insurance can provide peace of mind for contractors. It gives them the confidence to focus on their work without worrying about the potential for financial ruin due to an unexpected event.
Overall, insurance is a necessary investment for flooring contractors to protect their business and financial stability.
What Type Of Insurance Do Flooring Contractors Need?
Some of the most common small business insurance policies flooring contractors carry are:
- 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 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.
What Are Flooring Contractors 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.
What Does Flooring Contractor Insurance Cover & Pay For?
Flooring contractors may be sued for a variety of reasons, including:
- Personal Injury Claims: If a person is injured on a property due to the flooring contractor's negligence, they may sue the contractor for damages. For example, if the flooring contractor installs a slippery floor and someone slips and falls, they may sue the contractor for compensation.
- Property Damage Claims: If the flooring contractor damages a property during the installation or repair process, the property owner may sue for damages. For example, if the contractor damages the walls or furniture during installation, the property owner may sue for the cost of repairs.
- Breach of Contract Claims: If the flooring contractor fails to complete the work as agreed upon in the contract, the property owner may sue for breach of contract. For example, if the contractor fails to complete the project on time or uses inferior materials, the property owner may sue for compensation.
- Warranty Claims: If the flooring contractor provides a warranty for their work and the work fails to meet the warranty standards, the property owner may sue for compensation. For example, if the floor tiles begin to crack within the warranty period, the property owner may sue for the cost of repairs.
Insurance can protect flooring contractors from these types of lawsuits. Here are some examples of how insurance can help pay for the lawsuit:
General Liability Insurance: This insurance can protect flooring contractors from personal injury claims and property damage claims. If a contractor is sued for these reasons, their insurance company can pay for the legal defense and any damages awarded up to the policy limit.
Professional Liability Insurance: This insurance can protect flooring contractors from breach of contract and warranty claims. If a contractor is sued for these reasons, their insurance company can pay for the legal defense and any damages awarded up to the policy limit.
Workers' Compensation Insurance: This insurance can protect flooring contractors if one of their employees is injured on the job. If an employee sues the contractor for compensation, their insurance company can pay for the legal defense and any damages awarded up to the policy limit.
In conclusion, flooring contractors may face various types of lawsuits, but insurance can provide protection against legal defense costs and any damages awarded up to the policy limit.
Commercial Insurance And Business Industry Classification
- SIC CODE: 1752 Floor Laying and Other Floor Work, NEC
- NAICS CODE: 238330 Flooring Contractors
- Suggested Workers Compensation Code(s): 5437 Carpentry - Installation of Cabinet Work or Interior Trim, 5645 Carpentry - Construction of Residential Dwellings Not Exceeding Three Stories in Height, 5651 Carpentry - Construction of Dwellings - Three Stories or Less
Description for 1752: Floor Laying and Other Floor Work, Not Elsewhere Classified
Division C: Construction | Major Group 17: Construction Special Trade Contractors | Industry Group 175: Carpentry And Floor Work
1752 Floor Laying and Other Floor Work, Not Elsewhere Classified: Special trade contractors primarily engaged in the installation of asphalt tile, carpeting, linoleum, and resilient flooring.
This industry also includes special trade contractors engaged in laying, scraping, and finishing parquet and other hardwood flooring. Establishments primarily engaged in installing stone and ceramic floor tile are classified in Industry Group 174; those installing or finishing concrete floors are classified in Industry 1771; and those installing artificial turf are classified in Industry 1799.
- Asphalt tile installation-contractors
- Carpet laying or removal service-contractors
- Fireproof flooring construction-contractors
- Floor laying, scraping, finishing, and refinishing-contractors
- Flooring, wood-contractors
- Hardwood flooring-contractors
- Linoleum installation-contractors
- Parquet flooring-contractors
- Resilient floor laying-contractors
- Vinyl floor tile and sheet installation-contractors
Flooring Contractor Insurance - The Bottom Line
To find out exactly what type of flooring contractor insurance you need and how much coverage you should have, speak to an experienced insurance broker to go over your options.
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.
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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.