Because painters usually work at heights and in confined places, they generally face many occupational hazards such as falls, eye injuries, and exposure to mold, bacteria, and paint chemicals. These hazards can easily translate to third-party liability claims. This is where liability insurance coverage comes in handy.
Specifically, the benefits of carrying liability insurance coverage include:
Protects Business Assets
When working, your painters can potentially damage the client’s property either accidentally or intentionally. For instance, if a painter uses the wrong type of paint that ends up damaging the wall, the client can sue your business for compensation. Additionally, a painter can also pour paint on a visitor’s designer suit, and this can also trigger a lawsuit or claim. If you don’t have contractors’ liability insurance, you will most likely have to sell your business assets to settle the claims and legal costs, especially if you don’t have enough savings. The affected parties can also get a court order to auction your business assets. This will, in turn, harm your business assets and finances and possibly put you out of business. Thankfully, the right contractors’ liability insurance will cover any costs resulting from such scenarios and save your business assets.
Personal Asset Protection
If you run a limited liability company, your personal assets and finances will be safe from auctions and claims in case of third-party liability, per the Corporate Finance Institute (CFI). Unfortunately, operating your painting business as a sole proprietor means that your personal assets and finances are on the line. In other words, in case your business lacks enough money to pay for claims and legal costs, your creditors may come after your personal assets. To protect your personal assets from seizure, you should have adequate painting contractors’ liability insurance.
Responsibility for Employees
While performing their duties, your employees could cause third-party property damage or bodily injuries, leading to a lawsuit. For instance, if your painter causes a fatal traffic accident while driving to a job site in your company vehicle, you may be required to pay for the resulting funeral expenses, as well as pay compensation to the dependents of the deceased person(s). Depending on the circumstances of the accident, you could also face a lawsuit that may land you in jail. To avoid such a situation, you should carry adequate liability insurance for your business. Take note that general liability coverage typically excludes certain perils, property, hazards, or situations. For instance, it excludes fleet vehicles, meaning you need a separate commercial vehicle insurance policy to cover your fleet vehicles.
While workers’ compensation insurance is mandatory for businesses with at least one employee, according to the National Federal of Independent Business (NFIB), it does not count independent contractors as such. This means that if you hire self-employed painters to work for you, you don’t have to purchase workers’ comp for them. However, having insured employees is likely to lead to more job opportunities because clients generally prefer to hire contractors that carry adequate insurance coverage for their employees. Take note that your subcontractors are also your employees, only that you may not have full control over their operations. As such, you can protect them with the right contractors’ liability insurance.
Painting contractors need liability insurance coverage because their work exposes them to liability risks. Moreover, liability coverage can help a painting contractor access more job opportunities. For easy and convenient construction insurance services, contact the experts at Artisan Insurance Solutions today. We will help you get the right coverage for your needs.