As a painting contractor, there is a lot to juggle and a lot of projects to keep track of. Painting contractors are in high demand right now as so many people are doing home renovations given the crazy housing market right now. This blog post will help you decide what insurance you need as a painting contractor and if your current policy is the right fit for your company operating in Lancaster PA.
General Liability
The first step into the insurance world for a painter is to obtain a general liability insurance policy. This policy is usually one million dollars per occurrence and two million dollars of general aggregate. This policy protects you from claims or lawsuits that you may face from injury or damage that you could be found liable for. Many homeowners will ask to see your insurance certificate and they are looking for your proof of general liability. Also if you work on some commercial properties many property managers or owners will require you to carry a general liability insurance policy. This is the first line of defense to protect your business.
Here is an example of what your general liability policy would cover for your painting business:
- A homeowner trips over a paint can that you placed in the hallway and breaks their leg. Your general liability policy will protect your business from this lawsuit and help cover the medical costs for the homeowner.
Coverage for Contractor’s Tools & Equipment
After you have locked down General Liability you have the option to add another layer of insurance to protect your business. The GL protects other people while the Contractors tools and equipment, Business personal property, or inland marine coverage, protects the assets and tools owned by the business. Some tools can be self-insured, such as rollers or paint brushes, but for the more expensive tools and equipment, you will want to make sure that they are covered by your insurance policy. In doing so, if they get stolen, vandalized, burnt down, or something to that degree, you are covered. We typically recommend insuring tools and equipment that are worth over $2,000. You rely on your equipment to get the job done right, so you will want to make sure the key tools are covered.
Voluntary Property Damage Coverage
This is an endorsement that can be added to a business policy that covers things that are under your care, custody, and control. Insurance is not meant to be a warranty program for you and as a professional, you should know what you are doing when you go into a project. If you are working in a home and are moving vases, picture frames, or anything of that sort to paint, it is highly recommended that you have this coverage on your policy. Many contractors don’t know about this coverage and are surprised when they call their agent to file a claim and learn that they don’t have any coverage. These sudden financial losses can be very detrimental to a painting business. In Lancaster we have some beautiful ornate homes that are highly decorated inside and out. That is why we recommend this coverage to all of our painting contractors.
Two examples of voluntary property damage coming into play would be in the following scenarios:
- You are painting a wall in someone’s home, and you go to move a trophy and accidentally drop it. Little did you know that trophy was worth $10,000. Since the trophy was under your care, custody, and control, your general liability would not cover the cost of the trophy. Your voluntary property damage coverage would kick in to cover that expense.
- You accidentally spill some paint on a piece of furniture or a tv. This would be covered under your voluntary property damage coverage.
Additional Insured Coverage
Another element you will want to consider is adding “additional insured status”. If you are working on a handful of commercial projects or commercial buildings, you might need to have additional insured coverage listed on your certificate of liability insurance before completing any work on their property. This is becoming more standard in Lancaster and Central Pennsylvania as litigation across the country picks up. There is a small charge to add an additional insured to your policy due to the increased risk that your insurance company is taking on. You can add them one by one, or you can ask for a blanketed additional insured status where you pay a one time fee and you can add as many as you would like.
Those are the four biggest components of insurance that painting contractors should have for their business. If you have any questions regarding your current policy or would like your current policy to be reviewed, simply reach out to us here at Susquehanna Insurance and our agents would be more than happy to help you! We work with many painting contractors in Lancaster, Lititz, and across Central Pennsylvania. Don’t leave your business exposed, call us for a competitive Erie insurance Business Quote!