Framing Contractor Insurance Policy Information
Framing Contractor Insurance. Doing business in the building framing industry means you'll be working with post-frame contractors and those who are responsible for different framing tasks on building projects.
With the increased confidence of investors, this industry is currently experiencing enormous growth in employment and revenue.
If you are a contractor in this industry, then you know there are many risks involved with this type of work. As a result, it's vital that you get the right framing contractor insurance for your company.
Framing contractor insurance protects your business from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked framing contractors insurance questions:
- What Is Framing Contractor Insurance?
- How Much Does Framing Contractor Insurance Cost?
- Why Do Framing Contractors Need Insurance?
- What Type Of Insurance Do Framing Contractors Need?
- What Does Framing Contractors Insurance Cover & Pay For?
What Is Framing Contractor Insurance?
Framing contractor insurance is a type of insurance policy specifically designed for contractors who specialize in building the framework or structure of a building. It covers risks and losses related to the construction process, such as property damage, bodily injury, and liability claims.
The policy provides protection for the contractor and their employees, as well as any sub-contractors who may be involved in the project. It also covers materials, equipment, and other assets used in the construction process.
The purpose of framing contractor insurance is to provide financial protection and peace of mind to those involved in the construction process, ensuring that they can continue with their work without worrying about financial losses due to unforeseen events.
How Much Does Framing Contractor Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small framing contractors ranges from $67 to $79 per month based on location, size, payroll, sales and experience.
Why Do Framing Contractors Need Insurance?
As a framing contractor, there are several reasons why insurance is important:
Protection from liability claims: Framing contractors are at risk of liability claims from clients, customers, or third parties for property damage, personal injury, or other losses. Insurance can provide coverage for these claims and help protect the contractor from financial loss.
Employee coverage: Employees of framing contractors are at risk of injury while working on job sites. Insurance can provide coverage for medical expenses, lost wages, and other costs associated with workplace accidents.
Protection of equipment: Framing contractors use a variety of tools and equipment in their work, and these items can be damaged or lost in the course of a job. Insurance can provide coverage for the cost of repairing or replacing damaged or stolen equipment.
Compliance with state laws: In many states, insurance is a requirement for contractors to be licensed and legally operate in the industry.
In conclusion, insurance protects framing contractors from potential financial losses and provides peace of mind, allowing them to focus on delivering quality work to their clients.
What Type Of Insurance Do Framing Contractors Need?
As a business in the construction industry, the most important part of your coverage will be commercial general liability insurance. This type of coverage is required in many states before you can become a licensed framing contractor.
Proof of this type of framing contractor insurance coverage will be required most times before you begin working on a project.
Most times when you are hired as a subcontractor by a general contractor you may need to add them to your liability coverage policy. You would be able to add them as an additional insured for the length of time you spend working on the project. It works the same way if you hire by subcontractors to work for you.
Commercial General Liability For Framers
The exposure you may have as a framing contractor is covered with by this type of insurance. Property damage or injury while working is covered with this kind of insurance coverage. However, this insurance will not cover things that happen because of lack of planning.
Anything done wrong on the project because of a lack planning will be counted as business expenses. If your error causes other subcontractors to have to redo their work, then this coverage will cover the losses.
Commercial Auto Liability Coverage
When doing work on a job site, you will probably have to move tools to and from the site. As a result, you must get insurance on the vehicles that you are using. This insurance doesn't cover employees using their vehicles to transfer tools.
If while an employee is transporting to a job site and they get in an accident, your company may be in trouble especially if that employee is on your time. Having hired or non-owned vehicle insurance can keep you employees protected.
Umbrella Insurance Coverage
Mistakes in this industry can lead to large liability claims. As a result extra liability insurance is critical for your business. Most times the insurance company you're working with may not offer enough coverage for you to protect your company adequately.
With umbrella insurance coverage you can get the level of framing contractor insurance coverage you need for a price you can afford.
Worker's Compensation Coverage For Framers
Worker's compensation insurance is normally required before you begin working for somebody. Having this type of coverage is a requirement in most states for any company's non-owner employees. Typically before working on a project, you may need to provide proof that you have this type of coverage.
Working in this industry is dangerous, and this is why it is a good idea to have this type of insurance coverage. You want to ensure that when something does go wrong you and your employees are fully protected. Taking the time to speak with an commercial insurance agent to find this type of coverage for you is the best move you can make to protect your business and your employees.
With this type of coverage, you can protect your workers if they are ever injured while on the job. Workers compensation coverage will help with the medical expenses from the injury of an employee as well. If an accident happens on the job that results in a fatality, a workers compensation coverage plan will provide help to the surviving family.
What Does Framing Contractors Insurance Cover & Pay For?
Framing contractors may be sued for a variety of reasons, some of which include:
- Defective workmanship: If the framing work is faulty or does not meet building codes, the contractor may be held liable for any damages that result. For example, if a wall collapses or a roof leaks due to poor framing, the contractor may be sued for the cost of repairs.
- Personal injury or property damage: If someone is injured or their property is damaged due to the framing contractor's negligence, they may file a lawsuit against the contractor. For example, if a worker falls off a scaffold and is injured or if a framing crew damages a homeowner's property, the contractor may be held liable for the damages.
- Breach of contract: If the framing contractor fails to fulfill their contractual obligations, such as completing the work on time or using specified materials, they may be sued for breach of contract.
- Code violations: If the framing contractor violates local building codes or regulations, they may be sued for any resulting damages.
Insurance can help protect framing contractors from the financial losses associated with these lawsuits. Here are a few examples:
General liability insurance: This type of insurance can provide coverage for personal injury or property damage claims. If a worker or homeowner is injured or their property is damaged due to the framing contractor's negligence, the general liability insurance may help pay for the damages.
Professional liability insurance: Also known as errors and omissions insurance, this type of insurance can provide coverage for claims related to defective workmanship. If a framing contractor is sued for faulty framing work, professional liability insurance may help pay for the cost of defending against the lawsuit and any damages that result.
Workers' compensation insurance: This type of insurance can provide coverage for workplace injuries. If a worker is injured on the job, workers' compensation insurance may help pay for medical expenses and lost wages, reducing the likelihood of a lawsuit against the framing contractor.
Builder's risk insurance: This type of insurance can provide coverage for damages to a construction project while it is in progress. If a framing contractor damages the project during construction, builder's risk insurance may help pay for the cost of repairs.
In summary, insurance can help protect framing contractors from the financial losses associated with lawsuits by providing coverage for personal injury or property damage claims, claims related to defective workmanship, workplace injuries, and damages to construction projects.
Commercial Insurance And Business Industry Classification
- SIC CODE: 1751 Carpentry Work, 1521 Single-Family Housing Construction
- NAICS CODE: 238130 Framing Contractors
- Suggested Workers Compensation Code(s): 5645 Carpentry - Construction of Residential Dwellings Not Exceeding Three Stories in Height, 5437 Carpentry - Installation of Cabinet Work or Interior Trim, 5403 Carpentry - NOC
Description for 1751: Carpentry Work
Division C: Construction | Major Group 17: Construction Special Trade Contractors | Industry Group 175: Carpentry And Floor Work
1751 Carpentry Work: Special trade contractors primarily engaged in carpentry work. Establishments primarily engaged in building and installing cabinets at the job site are classified in this industry. Establishments primarily engaged in building custom cabinets for individuals in a shop are classified in Retail Trade, Industry 5712. Carpentry work performed by general contractors engaged in building construction is classified in Major Group 15.
- Cabinet work performed at the construction site
- Carpentry work-contractors
- Folding door installation-contractors
- Garage door installation-contractors
- Joinery, ship-contractors
- Ship joinery-contractors
- Store fixture installation-contractors
- Trim and finish-contractors
- Window and door (prefabricated) installation-contractors
Framing Contractor Insurance - The Bottom Line
It's important to have the right framing contractor insurance coverage when you have a business in the building framing industry. It will help you to protect your business from financial ruin in the case of injury on the job site or property damage. Having the right protection means you and your employees can feel safe while working on a project.
Expanding your company's insurance portfolio is a smart move, and its advise that you take the time to speak with an insurance professional so that you can find the right coverage for your business today. The worst thing to allow to happen is something going wrong while on the job, and you do not have the adequate amount of insurance coverage to handle it. Something as simple as this could lead to you losing your business.
Additional Resources For Construction Contractors Insurance
Learn about construction contractors insurance, including how much the premium costs and what is covered - and how business insurance can help protect your construction business from lawsuits.
- Blasting & Drilling Contractors
- Bridge Contractors
- Building Contractors
- Cable Layers
- Demolition Contractors
- Dock & Pier Contractors
- Dredging Contractors
- Foundation Layers
- General Contractors
- Road Contractors
- Sewer Contractors
- Steel Erection Contractors
- Surety Bonds
The construction industry is a high-risk industry that requires business insurance to protect against potential losses. There are several reasons why the construction industry needs business insurance:
Liability risks: Construction projects often involve working on other people's property, which can lead to potential liability risks if any damages or accidents occur. Liability insurance helps to protect against these risks by providing coverage for any legal fees or damages that may arise.
Property damage: Construction projects can also be at risk for property damage, whether it's the company's own equipment or tools, or the property being worked on. Commercial property insurance including inland marine helps to cover the cost of repairs or replacement of any damaged property.
Worker injuries: Construction is a physically demanding industry, and accidents and injuries are a common occurrence. Wrokers comp helps to cover the cost of medical treatment and lost wages for injured workers.
Financial losses: Construction projects can be disrupted by a variety of factors, such as weather, delays, or changes in scope. Business insurance helps to protect against financial losses that may occur as a result of these disruptions.
Overall, insurance is an essential component of the construction industry as it helps to protect against a range of potential risks and losses. Without it, companies in the construction industry would be vulnerable to financial ruin and may not be able to continue operating.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Surety Bonds, Accounts Receivable, Builders' Risk, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Umbrella Liability, Business Automobile Liability and Physical Damage, Hired and Nonowned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Contractors' Equipment, Goods in Transit, Installation Floater, Cyber Liability, Employment-related Practices Liability, Environmental Impairment Liability, Stop Gap Liability, Unmanned Aerial Vehicles (UAV) (Drones).