The drywall and insulation installation industry is made up of workers who do a number of different kinds of jobs, including but not limited to installation of drywall, acoustical ceiling tiles and panels, drop ceilings, insulation and gypsum board. Also included in this industry are lathing contractors, firestop contractors and soundproofing contractors. With so many different types of jobs under the drywall and insulation umbrella, it is a good idea to work with an independent agent who can help you build a drywall contractors insurance portfolio that is suitable for your particular business.
Drywall and Insulation Installers Industry Statistics From IBISWorld, 2014
- There are currently 131,196 drywall and insulation contractor businesses operating in the U.S.
- These businesses employ approximately 331,916 people.
- The drywall and insulation installation industry generates about $48 billion in revenue each year.
Liability Coverage Is a Crucial Part of Drywall Business Insurance
The most important aspect of your drywall contractors insurance portfolio is liability insurance. Legally, you cannot do commercial installation work without it. It is required in order to obtain and maintain state licensure, and anyone who hires you to do drywall or insulation installation work on their building project can require you provide them with proof of general liability insurance before they allow you to begin working.
If you are hired by a general contractor to work on new building construction, they will probably mandate that you have your insurance company add them to your general liability and completed operations coverage with an additional insured endorsement for the duration of the job. An independent insurance agent can help you obtain these drywall business insurance endorsements.
In our litigious society, liability insurance is necessary to protect your business finances in the event of a liability lawsuit. This insurance covers the high costs of legal defense as well as court costs and financial damages. However, in order to have this coverage when you need it, your drywall contractor insurance portfolio must include the right kinds of liability insurance. Your independent insurance agent can explain your options and make recommendations based on the factors inherent to your particular business. Some liability insurance types you may want to consider include:
- Commercial general liability insurance: Also known as CGL, this insurance is a standard part of any drywall business insurance policy. It provides coverage for common liability exposures faced by drywall installers, such as injuries or property damage your workers may accidentally cause to third-party interests while doing their job. It also provides product liability insurance in the event that your business is sued for installing a product that ends up being recalled for safety or structural concerns.
- Auto liability insurance: Your drywall and insulation installation business likely owns a van or truck – or maybe even a fleet of vehicles – that are used to transport tools and supplies to and from job sites. By law, you will need to cover your company-owned vehicles with a commercial auto insurance policy. These policies typically offer higher liability limits than standard auto insurance policies do so you can better protect your business.
- Hired or non-owned vehicle insurance: If an employee is responsible for a motor vehicle accident while driving a personally owned vehicle to do a work-related errand or while driving a rented vehicle to transport tools or supplies to and from a job site, your business may face a liability lawsuit. In such a case, you will not have liability coverage unless you have included hired or non-owned vehicle insurance in your drywall contractor insurance portfolio.
- Employment practices liability insurance (EPLI): This insurance shields your drywall or insulation business from large financial losses if a current or former employee sues your firm for a perceived illegal business practice, such as harassment, discrimination or wrongful termination.
- Umbrella insurance: Insurance companies have limits to how much liability coverage they will offer. If you feel that the maximum amount of liability insurance offered by your provider is not high enough to fully protect your business, you may be interested in acquiring extra liability coverage by supplementing your drywall business insurance portfolio with umbrella insurance coverage. Adding umbrella insurance to your drywall contractor insurance portfolio is an affordable way to get additional liability coverage for all of your policies that include liability insurance.
Your Drywall Business Insurance Should Include Workers' Compensation
In most states, businesses are required to cover their employees with workers' compensation insurance. This insurance covers paying for medical treatments for injuries sustained on the job, paying employee wages while they are recovering from covered injuries, and even paying out death benefits to surviving family if a work injury is fatal. Regardless of whether or not the state in which your business is located requires this coverage, contractors who hire you to do installation work are likely to ask you to show proof of workers' compensation insurance.
Workers compensation insurance is particularly important in the drywall and insulation industry because the risk of worker injury is high and because it can prevent your company from facing liability lawsuits related to these injuries. When building your drywall contractor insurance portfolio, an independent insurance agent can help you find a workers' compensation insurance company that specializes in covering construction type businesses. A good workers' compensation company is a helpful resource when it comes to safety protocols.
Your Drywall Contractor Insurance Portfolio Can Cover Business Property
If you have a central office where you handle administrative work or store your tools and materials, your drywall business insurance policy should include coverage for the property kept in this location. You and your insurance agent may also want to discuss adding extra expenses insurance coverage to your drywall contractor insurance portfolio. It covers the costs involved with renting and setting up temporary office space if a covered event has made your office temporarily unusable.
The tools and equipment you use in day-to-day operations can be very expensive to replace. You will therefore want to be sure that your drywall contractor insurance also includes coverage against loss, damage and theft while they are away from your central location.
If you are working on drywall or insulation as part of a new building construction, the top contractor on the job will probably have purchased a builders risk insurance policy. This type of insurance covers property that is used and stored on the job site during the duration of the project, and in most cases, this would include your drywall business property.
If you are doing drywall or insulation work on an existing building, you will need inland marine insurance to cover your tools and equipment when they are away from your central office or storage area. This insurance covers your business property both on-site and while in-transit to and from jobs.
Get Help Building a Comprehensive Drywall Business Insurance Portfolio
Building a suitable drywall contractor insurance portfolio for your business can be a complicated process. By ensuring that you have all the coverage types you need and that you have purchased sufficient amounts of coverage, you can protect your business finances from losses that could potentially bankrupt your company. The best and easiest way to build a comprehensive portfolio is by working with an independent insurance agent in the Trusted Choice® network. These agents can help you identify your various exposures, recommend the right kinds of coverage to mitigate those risks and shop around to find you a selection of competitively priced policies. Find a Trusted Choice agent near you to learn about drywall business insurance.