Painting contractor‘s liability insurance protects your painting business against common perils like paint spills, broken windows, falls, and such other incidences that might lead to costly property damage or injury. Even a single unfortunate incident can be incredibly difficult to overcome if you don‘t have the right insurance coverage. Liability insurance for painting contractors makes your clients more confident while procuring your services. It lets them know that you and your employees will be financially covered in the event of damages.
The following are the 4 reasons why painting contractors need the right liability insurance:
To Protect Business Assets
As a painting contractor, you should carry adequate commercial liability insurance. This insurance shields your business from liability relating to injury and damage that emanates from your business operations. A general liability policy usually covers the expenses relating to the claim, including legal costs and liability costs up to the coverage limit. If your expenses exceed your liability limit, your business assets will be on the line. For instance, if you spill paint on a client’s floor, your general liability insurance will cover the cost of replacing or cleaning the floor coverings. If the homeowner slips and falls due to the spill, your liability insurance policy will cover the medical costs and the bodily injury claims. Your general liability insurance can also cover liability claims relating to false advertising and slander.
To Protect Personal Assets
If your painting business is incorporated as a limited liability company, your personal assets will be protected from lawsuits relating to your business‘s operations. However, if you choose to operate your business as a sole proprietorship, you can be personally liable for judgments and settlements that exceed your business‘s liability insurance limits. Therefore, liability insurance policies, such as business auto insurance, are vital. It is worth noting that personal car insurance only covers personal driving. This means you should not use your personal car for work purposes without the right insurance coverage. Specifically, you should carry commercial auto insurance for all the vehicles you use for your business operations, including visiting job sites and transporting equipment and supplies.
To Pay for Liabilities Incurred by Employees
Your painting contracting business can be held liable for your employees‘ actions even if an incident occurs away from your worksite. Therefore, you should consider adding an extra layer of protection by getting insurance that protects your business against such employee-related liabilities. For instance, if one of your workers is in a crash while driving a company vehicle, your general liability insurance won‘t protect you. Therefore, you should get additional liability insurance like commercial auto insurance, which pays for injuries and damages when you or your employees are at fault for an accident that happens when they‘re using a company vehicle.
To Obtain More Job Opportunities
General contractors that sub-contract their work to self-employed painters usually prefer that painters carry a workers‘ compensation insurance policy that will cover them in case of workplace injuries, says the Insurance Information Institute (III). You may have an advantage when seeking subcontracting work from general contractors when they are assured that they won‘t have to pay for workers’ compensation insurance. Additionally, contractors who are looking for corporate and government jobs are typically required to be adequately insured before they can bid on projects.
Many of the services that you provide as a painter expose you to potential liability. These services include disposing of lead-based paints and removing old wall covers. You can also be sued because of slip-and-fall accidents, damaging paint spills, or even the comments you‘ve made about a client after business hours. Contact our experts at Artisan Insurance Solutions for painting contractor‘s liability insurance that adequately protects your personal and business assets.