3 Coverage Types Protecting Painters from Lawsuits
The Paint Quality Institute recently organized several test panels to address exterior house paint quality. These panels determined that exterior paint applied in dry, moderate weather conditions vastly outlasts paint applied in very cold, very hot, or windy weather. A good paint job can help homeowners save big dollars - a $3,000 paint job done well can last 10 years, or $300 per year. Paint jobs done in less-than-ideal weather conditions usually last only 5 years, doubling your customer's potential investment. Skilled painters are in high demand from those homeowners and business owners who seek efficiency and a quality product.
You've worked hard to get your painting business up and running. Or, maybe you're just starting out. Either way, you don't want a paint spill, a fall from a ladder or scaffold, or some other unfortunate event to put your business at risk. No matter if you are a one-person operation, or you run a large company with many employees, you need to make sure you have a painters insurance policy that fully protects you and your business.
3 Coverages Painters Need
- Liability insurance: Protection for general liablity claims, property damage claims and other risks
- Worker's compensation insurance: Provides medical payments if employees get injured, sick or die due to work-related causes
- Commercial vehicle insurance: Insures cars, pickup trucks, vans, or other types of trucks used for business purposes; typically included in a business owners insurance policy.
Liability Coverage and More with Business Owners Insurance
The primary part of your painters insurance coverage will typically be a business owners policy or (BOP). The BOP is designed for small businesses with less than 100 employees and $5 million in sales. The policy bundles all the main property and liability coverages together. The advantage of a BOP package is that you pay a lower overall premium than if you were to pay for each component separately.
Normally, a BOP policy consists of:
- Bodily injury and property damage liability insurance: Protects against damage that you, your workers, products or services cause to other people or their property. Note that you can buy painters liability insurance separately as well. You may want to increase this coverage, or purchase excess liability insurance in the form of an umbrella policy to ensure you are fully covered against liability claims.
- Business interruption insurance: Pays up to a year of lost revenue due to an insured property loss.
- Property insurance: Covers damage to your property and equipment.
- Medical payments: Covers injuries to others on property you rent or own.
- Commercial vehicle coverage: Insures the vehicles you buy or rent for business purposes; optional addition for business owners with vehicles
The cost of these policies can vary greatly depending on the dollar amount of the liability coverage required by your state, the number of employees you have, the number of vehicles you own or rent, whether you paint interiors or exteriors, and any add-on coverage you choose.
What Is Workers Compensation?
As a business owner and employer, you are liable for your employees. Workers compensation insurance covers your employees if they get injured, sick or die from a job-related incident or illness.
Workers comp is required by every state, though the laws and requirements vary. Your workers compensation coverage pays for the medical and hospital expenses necessary to diagnose and treat the medical issue. The policy also covers disability payments to the injured worker, if necessary. It can include rehabilitation treatment. Normally, an employee who receives these benefits cannot sue the employer for damages related to the incident.
If you own a one-person painting business or have 2 to 4 employees, you should be able to get a policy for about $100 a month; your premium price will be higher with a larger operation and will depend upon the number of employees you need to cover.
Whether you have a small operation or a larger painting company, it is important to understand the requirements of your state and ensure that you are in compliance. An insurance agent can be a big help in this area.
Who Can Benefit from Painting Insurance?
Commercial painters need to have a painters insurance policy in place to protect themselves, their workers and their business investment.
Additionally, there are several other types of businesses that can benefit from this type of policy, even if the business is not exclusively a painting contractor. These include:
- General contractors
- Construction companies
Researching Painters Insurance
Now that you have a handle on how painters insurance can protect you from the many risks associated with your business, it is time for you to find the coverage you need. Keep in mind state requirements on painters liability and other business insurance coverages can vary widely from state to state.
Researching you options can take time. It's very important to find an agent and insurance package that will work best for your enterprise; it may be just as vital as ensuring you meet the regulations of the state you work in. Take time to compare quotes and read consumer reviews about insurance agencies. Independent agents can help you speed up this process so you don't have to cold-call and go through a long interview each time you need a policy. The more quotes you can review before you buy, the more educated you'll be.
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