Installing drywall may seem like one of the more straightforward projects on a site, but the risks involved are anything but straightforward. Drywall contractors need insurance to protect them from complications that can result from the work they performed, especially if someone wants to allege that their work somehow caused damage to something or injury to someone.
Commercial liability insurance, errors and omissions, workers compensation, auto insurance and other types of coverage all contribute to a portfolio of risk reduction that increases your likelihood of continued success while also making you competitive in the contracting world.
Liability is the biggest concern when entering a job site. Whether the project involves brand new construction or remodeling, your crew is always at risk of causing significant damage to the property owner’s valuable assets. You could also be held liable if your work somehow causes injury to anyone on the property.
Commercial liability insurance protects your crew in these situations so that damage or injury will be covered by your insurer and not out of your own pocket. Considering the potential for these liability costs to become quite steep without insurance coverage, most general contractors and property owners require any subcontractors to carry liability insurance before they can be allowed to participate on a job site.
Umbrella policies can extend liability coverage past $1,000,000 with coverage applying to most existing policies, including on-site liability and liability from accidents caused by work vehicles.
Errors and omissions is another important policy drywall contractors may want to consider since it protects them from costs related to projects allegedly completed below the required quality standards. That way if a product used was not the right thickness to allow the wall insulation to work, the contractor can avoid expenses or lawsuits related to resolving the situation.
Workers’ Compensation Insurance
You would never want your workers to be left responsible for their healthcare costs when their job duties caused their injury in the first place. Workers’ compensation insurance protect employees from such costs while also eliminating their need to file a lawsuit to recoup their medical losses. Drywall contractors are protected from legal costs and employees are indemnified for relevant medical needs, making workers’ comp a win-win.
Business owners should ensure that any subcontractors they hire to help with jobs carry their own liability and workers compensation insurance, or else they will have to determine a way to include the sub temporarily on their policy in order to avoid risk.
Equipment and Property Coverage
Business auto insurance and commercial property insurance are absolutely crucial to prevent accidents from derailing your business’s financial state. Vehicles are quite expensive, and so are power tools, ladders and other equipment when all totaled up. Commercial property insurance protects assets like workshops, business materials and equipment under most circumstances. Business auto insurance can protect work-related vehicles in incidents of liability or loss, including many of the contents driven around in the vehicles.
Unfortunately, materials are not always covered under these policies because of various exclusions. Here are some policies that can close these insurance gaps:
- Inland marine insurance protects materials during transport
- Installation floaters cover unused materials on job sites that have not yet been paid for by general contractors
- Equipment breakdown insurance covers expensive assets like machinery or specialized tools in case they malfunction before the business is prepared to replace them
Other Insurance Policies
There are many other insurance products that could benefit drywall contractors, such as employment practices liability insurance or employee dishonesty insurance. Review your business’s routine needs and risks encountered to help determine the best portfolio of insurance products that can protect you from costs that would otherwise cripple your business. You may not need all of them, but going without any of them is never an option for drywall contractors who want to stay afloat in their industry.