Why Should a Painting Contractor Purchase General Liability Insurance?
There are many painting contractors in the United States. From painting kitchen cabinetry to the interior walls of a building, it can be an exciting and rewarding profession.
Over 365,000 people work as construction and maintenance painters across the country. If you work as a painting contractor, you provide a valuable service that is typically in demand.
The question is - why do you need general liability insurance? Compared to other areas of the industry, the risks involved with a painting business may seem relatively low. But in order to avoid unnecessary complications you need to have the right business insurance in place.
Let's find out what general liability insurance is and why painting businesses should think about purchasing it.
What Is General Liability Insurance?
General liability insurance could help protect your business if it causes damage to another person or their property. It may also provide coverage for slander and misleading advertising.
Why Painters Obtain It
For example, you may be contracted to repaint a living room. If you accidentally damage your client's property, they can potentially make a claim against your business. This is where general liability insurance comes in. It could cover costs to repair, replace, or reimburse the client for the damages that occurred.
In more serious cases, you may inadvertently injure a third party. For example, your business could cause injury to a guest at a home you're working at. The guest can file a claim to help cover expenses resulting from the accident.
General liability insurance can also cover your legal expenses. Even a relatively minor accident could become an existential threat to your business as legal fees and other costs mount up. If you don't want to take the risk, you could make sure that your business is protected with general liability coverage.
Is General Liability Insurance Mandatory?
General liability insurance is not mandatory in all states. However, many states require painting contractors to have it in order to obtain a contractor's license.
It is recommended to check your local and state laws to determine if your business needs to acquire general liability coverage.
Even if it is not a requirement, it is a good idea to consider this type of business insurance as an extra layer of protection for your business.
What General Liability Insurance Doesn't Cover
General liability insurance can help protect against third parties. It does not cover your workers if they experience a workplace accident or get sick on the job. It also does not protect any property that your painting business owns.
That's why several business owners combine general liability coverage with other policies. This can give you the confidence to help grow your business, knowing that you could be protected if something goes wrong.
Why Purchase a Business Owners Policy?
Many painting businesses consider taking out a Business Owners Policy. This policy combines general liability insurance with other forms of protection.
Property insurance helps cover items that your painting business owns or rents. This encompasses inventory, equipment, and tools.
Property insurance coverage varies but it usually provides a level of protection against:
- Accidental damage
Most painting businesses collect personal data about its clients. This includes their name, address, and payment details. This is exactly the kind of information hackers want to get hold of.
If you experience a cyber-attack, would you be able to cover the costs of responding to the breach? What about the legal costs? A Business Owners Policy includes cyber coverage, to help provide you with "peace of mind."
Workers' Compensation Insurance for a Painting Contractor
A Business Owners Policy can provide great coverage, but it does not include Workers' Compensation insurance. If you have employees, you might want to consider taking out a Workers' Compensation insurance policy in addition to a BOP to help ensure that your employees could be protected if an accident occurs at work.
Just like general liability coverage, some states may require your business to have Workers' Compensation insurance. Requirements vary by state, so it is best to review your state laws.
Workers' Compensation insurance could help pay medical and wage benefits to workers who get injured or fall ill because of their work conditions.
Benefits for Employees
Workers' Compensation insurance can cover lost wages if an employee gets injured at work. It could also cover medical expenses that result from injuries and illnesses contracted on the job.
Benefits for Employers
Workers' Compensation insurance can also help protect your business if an employee gets sick or injured at work. It could reduce out-of-pocket expenses and financial harm by helping to cover expenses because of a claim.
Get Insurance for Your Painting Business
At PolicySweet®, we strive to simplify the process of obtaining insurance for painters.
Our Business Owners Policy has several types of coverages a painting contractor might need. Top it off with Workers' Comp, and your business could be well protected.
It takes only a few minutes to get a quote for your painting business insurance. Click here to start the process now!