Standing on solid ground.
It’s part and parcel of what you deliver as a flooring contractor. But while you’re a pro at managing bumps, gaps, and uneven surfaces under your feet, it’s not always so easy to control other factors that can pop up and affect your business.
While knowing what may happen to your business is often a mystery, having the coverage to deal with it doesn’t have to be. This guide will walk you through some basic insurance coverages, help you decide if they’re right for you, and help you choose what you need quickly and easily.
The If-Then Guide to Coverages for Flooring Contractors
General Liability Insurance
If you work in a customer’s home or business and there’s a chance of accidentally damaging property or a customer getting hurt in the process, then you should consider general liability (GL) insurance.
Many small businesses include a GL policy as part of their insurance protection. General liability can cover claims of bodily injury to others or damage to their property. Let’s say your customer visits to check out the progress on their new kitchen floor and they accidentally trip over some tile boxes and injure their wrist. General liability insurance can help cover their medical costs, up to the limits of your policy.
In another scenario, you’re refinishing a wood floor and accidentally damage a wall or spill sealant on a piece of furniture. Once again, general liability coverage can help cover the costs to repair or replace the damaged wall or furniture.
There’s more to general liability insurance. It also can cover instances of personal or advertising injury, such as claims of stolen ideas, invasion of privacy, libel, slander, and copyright infringement related to advertising.
Tools and Equipment Insurance
If you have tools, equipment, and materials (e.g., flooring rolls, tiles, and adhesives) you use onsite, then you should look at having tools and equipment insurance.
This type of policy is also known as inland marine insurance, and it’s designed to cover theft or damage to your portable tools, equipment (e.g., carpet stretchers, tile saws, floor scrapers, adhesive mixers), and materials from theft or damage, even while they’re in transit.
For example, some jobs involve multiple days at the same location, which may mean leaving some tools and materials locked up and stored onsite. If an expensive tile saw is stolen overnight, then inland marine insurance can help replace it. Or if a pallet of valuable flooring materials is damaged on the way to a client’s home, then this coverage can help pay to replace the materials.
Business Owner’s Policy (BOP) Insurance
If you want to financially protect an office, warehouse, or other business location, as well as have general liability protection and coverage for your tools, equipment, and inventory, then a business owner’s policy may be best for you.
A BOP is a type of insurance that combines a number of coverages, such as general liability, commercial property insurance, and business interruption insurance into one package, often at a lower cost than buying those policies separately.
Commercial property insurance specifically covers your owned or rented building and its contents (office furniture, non-portable machinery, flooring inventory, supplies) against fire, theft, or vandalism. If there’s a fire at your business location, then commercial property insurance can help cover the cost to repair the building and replace damaged equipment and inventory. Or if there’s a break-in and items are stolen, this coverage could help pay to replace those items.
The third component of a BOP is business interruption insurance. If your business had to close after a fire (as mentioned above) or other covered event, this coverage could help make up for any of the usual income you may have lost as a result.
Workers’ Compensation Insurance
If you have full- or part-time employees, then you may need workers’ compensation insurance, as nearly all states require it by law.
Workers’ comp covers medical expenses, lost wages, and rehabilitation costs for employees who get injured or ill on the job. It also can financially protect your business from lawsuits that could be filed by an injured worker.
Think about this: If one of your employees cuts their hand with a utility knife while cutting carpet, then workers’ comp can cover their medical bills and a portion of their lost wages. Or if a team member suffers a back injury from lifting heavy flooring materials, workers’ comp can provide coverage for treatment and rehab.
If you’re the one who does it all for your business, this coverage can provide workers’ comp benefits if an accident or injury puts you out of action. You can find out more here.
Errors and Omissions Insurance
If you’re accused of negligence or poor performance by a customer (even if you think you’ve done nothing wrong) then this insurance can help cover claims and legal costs to defend yourself.
Errors and omissions (E&O) insurance is also known as professional liability insurance. It’s designed to protect you against the cost of mistakes, claims of unsatisfactory work, or not fulfilling a contract.
If you mistakenly install the wrong type of flooring in a commercial building, resulting in significant costs to remove and replace it, then E&O insurance could help cover those costs and any legal expenses as well. Or if a customer sues you as a result of your faulty installation work, leading to issues like buckling or premature wear, then E&O insurance can help to cover legal expenses and any damages you may have to pay.
The Certainty of Uncertainty
There are challenges and risks every business owner has to keep in mind, from a changing economic environment to honest mistakes, but even if there is a lot to keep you up at night, financially protecting your business doesn’t have to be one of them if you have the right insurance.
The Assurance of Insurance
That’s where we come in. We’ve insured more than 1 million small businesses worldwide. We know how much owners such as you value the peace of mind the right coverage can provide. We also know how to take the hassle, confusion, and time commitment out of the insurance buying process.
With just one online form and 10 minutes of your day, we can help find the coverages you need from trusted insurers who specialize in protecting small businesses such as yours. You get to choose what works best for you and your business. In fact, you can get started right now, right here. We’re certain about that.
Looking for more information about business insurance? We specialize in that, too. Here is some information we recommend: