Best Drywall Contractor Insurance
Drywall contractors come in at the last phase of commercial or residential building projects. After the plumbing is set along with electricity and mechanics are in place, drywall contractors polish the area with framing, insulation, and drywall.
Drywall contractors belong to the group of workers at risk of getting an injury at the workplace. Handling tough materials, heavy equipment, and working under harsh conditions, drywall contractors are usually physically strong people who deserve the proper protection. That is why there are several types of drywall contractor insurance out there.
What Is Drywall Contractor Insurance and How Does It Work?
Many things can go wrong when working with heavy materials and equipment. You and your workers can get easily injured even if you are careful.
Drywall contractor insurance will protect you from lawsuits and hefty medical bills. In addition, having your insurance covered will land you more jobs because people will see that you are a responsible professional who takes care of his employees and customers.
In most cases, companies will ask for general contractor insurance coverage. Nowadays, insurance coverage is demanded by construction and licensing boards.
General liability insurance policy is not as pricey as the other types of insurance and should be a must-have for every building contractor. Especially if you have employees in your team, you need to have the workers’ compensation insurance covered.
Because every business is one of a kind, the coverage is unique too. Find out what you already have and want to make sure you are well protected from unwanted situations.
Umbrella insurance coverage protects your company if you cause disastrous damage to the property. In addition, this type of insurance can be helpful if you get involved in a claim that goes over the policy limits of the other types of insurance coverage.
Depending on the state, home contractor insurance is required by law. Either way, it is recommended drywall contractors get this kind of insurance because it covers accidents, damages, physical injuries, worker injuries, mistakes, and more.
Additionally, to minimize the risk of getting sued for damaging and replacing equipment, you should get HVAC contractor insurance. This type of insurance costs around $500 per year. Depending on the size of your company, the number of employees, annual revenue, etc., the purchase coverage can go as low as $300 and up to $10,000.
Best Drywall Contractor Insurance Providers
There are so many drywall contractor insurance providers on the market right now. Each one includes different conditions and prices. Here are the top five drywall insurance providers:
- General liability
- Commercial auto
- Property (BOP)
- Property insurance
- Cyber liability insurance
- Workers’ compensation
- Employee dishonesty
- Crime insurance
- Umbrella insurance
- General liability insurance
- Workers’ compensation insurance
- Commercial auto insurance
- Contractor’s tools and equipment insurance
- General contractors insurance
- Drywall liability insurance
- Worker’s compensation
- Umbrella insurance
- General Liability
- Equipment Coverage
- $1,000,000 Limit
- Workers’ compensation insurance
Mitchell & Whale
- General Liability Insurance
- Commercial Vehicle Insurance
- Commercial Property Insurance
- Tools Coverage
What Types of Insurance Do Drywall Installation Businesses Need?
- General liability insurance – Covers protection for contractors from accidents that have occurred during everyday business operations. This includes damage done on the property, body injuries, defense costs, and personal injuries.
- Workers’ compensation insurance – This type of insurance covers wage replacement and medical bills in case your employees get injured on the job.
- Commercial auto insurance – Cars, vans, pickup trucks, box trucks, service utility, and food trucks can be covered by this type of insurance. It includes damages to your vehicle, driver injury, and damage to other people’s property.
- Crime Insurance – This type of insurance provides protection from theft, loss of securities, money, property, and other fraud events.
- Umbrella Policy – Umbrella insurance serves as an extension to your other types of insurance and offers protection beyond existing limits.
How Much Does Insurance Cost for Installation Businesses?
Insurance policy costs can vary depending on several factors, such as:
- Type of business: Some businesses tend to have a higher risk; therefore, they are required to pay higher insurance costs than those with a lower risk. The more your contractors use heavy equipment and tools, the higher chance to acquire an injury at the workplace, thus increasing insurance costs.
- Revenue: Smaller drywall businesses will be required to pay less; the bigger the revenue, the higher insurance costs.
- Location: Location can also be a deciding factor in the cost of insurance.
- The number of employees: The more people you have on your team, the higher the chance of accidents. Also, having a team working on multiple sites can also increase the insurance cost.
- Business equipment and property: More expensive tools and equipment can raise the average insurance cost for a small business; prices also depend on property location and size.
- Type of policy you want for your business: Insurance costs also depend on the type of insurance policy you want for your drywall contracts. Whether it’s umbrella insurance or general liability, policies differ from each other in prices, limits, coverage, and requirements.
Risks When Working as a Drywall Contractor
Every profession carries its own risk. Whether it’s psychological or physical, people can be exposed to the risk of acquiring an injury at the workplace.
Because drywall contractors work with heavy materials and equipment, they are exposed to a higher risk of getting injured on the job or damaging other people’s property.
Premises liability exposures
Unsafe working environments fall under premises liability exposures. Drywall contractors are required to work in unprepared or unregulated environments. For example, slip and fall hazards are very common accidents because property owners fail to sweep the floors, stairs, and yards before letting drywall contractors start their work. Also, because of the property owner’s negligence, drywall contractors are exposed to robberies, break-ins, and vandalism.
Completed operations liability exposures
Drywall contractors are also at high risk of getting sued by property owners because of damage done by their work after the job is done. If the contractors are not careful, they can end up paying property owners a lot of money in damages.
Environmental impairment liability exposures
Environmental Impairment Liability exposure is related to physical injuries and property damages that were done by some form of pollution. Drywall contractors are exposed to potentially toxic materials, depending on the type of materials they use and the environment they work in.
Workers’ compensation exposure
As mentioned above, drywall contractors usually work in small or bigger teams, thus exposing themselves to a greater risk of getting an employee injured on the job. In addition, drywall contractors are at higher risk of acquiring an injury by working with harsh materials, heavy equipment, and using a lot of force to perform work duties.
Things can go wrong when cutting and hanging panels of wallboard. That’s why drywall contractors can often damage people’s property, resulting in lawsuits and financial loss.
Inland marine exposures
Because drywall contractors are called to work in different locations, their equipment has to be transported to the location, usually by train or truck. That increases the chance of getting their equipment damaged or lost during the process.
Commercial Insurance and Business Industry Classification
Unlike personal insurance, commercial insurance is designed to protect your businesses from any future unwanted situations and accidents that occur in the workplace. It’s designed to cover every asset of your business, including vehicles, equipment, property, tools, and employees.
Business industry classifications
Depending on economic activities, business industries are classified into three sectors:
- Primary (forestry, fishing, and agriculture)
- Secondary (manufacturing)
- Tertiary (services)
Is It Worth Getting This Insurance?
Getting home contractor insurance is a must-have for drywall contractors. It helps prevent contractors from paying for damages and lawsuits with their own money, resulting in devastating losses for their business and potential bankruptcy. Also, not to mention, most property owners do not want to hire drywall contractors without insurance. Finally, having drywall contractor insurance for your business will make you look professional, and it will prove you are a serious business owner.
What does drywall insurance cover, and what does it not?
The most important types of insurance policies for drywall contractors are general liability insurance, workers’ compensation, commercial vehicle insurance, and tools/equipment insurance to make sure you have every asset of your business covered.
Most claims from homeowners are dust build-ups in HVAC systems after drywall contractors are done. General liability usually covers this type of claim but it’s always recommended that contractors use containment barriers to collect dust from the area you have worked.
If a worker gets injured on the job, general liability will not cover the claim, but if you have workers’ compensation insurance, your costs will be covered. General liability covers screws and nails getting stuck in drain pipes, which can lead to a fire hazard caused by a short circuit.
Does insurance cover bad contractors?
Unfortunately, neither general liability insurance nor homeowner insurance covers bad workmanship. There isn’t a policy to cover that kind of damage. In the best-case scenario, you can ask the contractor to come and fix the mistakes for free or hire another team to redo the job.
What is considered poor workmanship?
If a drywall and painting contractor does not follow standard industry practices, does not use high-quality equipment, and is negligent toward their employees and you as a property. In that case, you can say that the contractor is doing a poor job as a drywall contractor.
Does general liability cover poor workmanship?
As mentioned above, general liability nor any other drywall contractor insurance cannot cover the quality of your work. So, the answer is no.