2014

What Insurance Does an Interior Painting Company Need?

One insurance policy can't cover the variety of liabilities and coverage needs your painting business has. You'll need a mix of the following policies to cover your business…

General Liability Insurance for Home Paint, Wall Paint, and Interior Decor Painters

As one of the most common insurance policies, General Liability Insurance helps your business pay for many of the most common lawsuits that threaten it.

GLI covers third-party lawsuits - ones filed by customers, vendors, and other non-employees - when someone claims your business…

  • Damaged their property.
  • Caused them to get injured (either directly or by creating an environment that led to injury).
  • Harmed another person's or business's reputation.
  • Caused an advertising injury.

Here's how one of these lawsuits may occur at your business. A client is walking around the house to check on your work. As they look around, they trip over an extension cord plugged into your paint sprayer. When they fall, they try to brace themselves, but land awkwardly on their wrist, breaking it.

If this happens, your business could be liable. A lawsuit like this, even if it's over a something as seemingly minor as a fall, could end up costing your business tens of thousands of dollars. None of us has that kind of cash lying around.

To protect your business from this and other common liabilities, contact our agent and receive a free quote on your liability insurance.

Property Insurance for Small Painting Businesses

Because it covers your business from some types of unexpected property loss, Property Insurance is vital to growing small businesses. As your business expands, you invest your profits in new tools, equipment, and other capital goods.

If anything were to happen to your physical property, the best-case scenario is that your productivity would plummet; the worst-case scenario is that you'd be unable to afford the rebuilding process and have to shut down your business.

Property Insurance can cover your…

  • Painting and other equipment (tools, air compressors, paint sprayers, etc.).
  • Inventory of house paint, wall paint, and home decor supplies.
  • Offices and buildings.

Not every situation is covered under a Property Insurance policy, but many important ones are. Your business can be protected from…

  • Fires.
  • Wind storms.
  • Snow storms.
  • Less severe rainstorms (i.e., ones not named by the National Weather Service).
  • Vandalism.
  • Tornadoes.
  • Theft.

How exactly does Property Insurance work? In the days after a disaster or theft, you'll have to submit a claim to the insurance company. Usually, you provide some evidence like a police report or estimates from contractors on the cost of rebuilding / repairing your property. After that, if the claim is covered, your insurance company will send you a check for the lost value of your property.

You may be wondering how the insurance company assigns a value to your property. To a certain extent, that's up to you. You'll have to choose between two types of evaluations…

  • Cash value.
  • Replacement value.

The cash value is the original price of your property minus its depreciation. Tools, equipment, and other property frequently lose value over time due to wear and tear and other depreciation.

Replacement-value policies cover the cost to replace your property, even if it is now worth less than its original cost. These policies are generally more expensive, but can offer more coverage.

Business Owner's Policies for Interior House and Office Painting Businesses

Business Owner's Policies (or BOPs for short) are an effective small-business insurance package. BOPs bundle Property and General Liability Insurance together, and can offer your business a discount on these two crucial policies.

How do you qualify for a BOP's lower premiums? Your business will have to be considered "lower-risk" by insurance companies in order to purchase this insurance package. Typically, businesses are able to buy BOPs if they…

  • Have fewer than 100 employees.
  • Work in small or medium-sized office spaces.
  • Don't work in dangerous industries.
  • Don't need more than a year's worth of income insurance.

The last stipulation refers to the income insurance you can buy with a Business Interruption Insurance policy added to your Property Insurance. If a storm tears up your garage and damages your painting equipment, it may take time for your business to rebuild. If you have to temporarily close down your business, BII can pay you the income you would normally receive. That way, you can continue to pay your employees (and yourself) and meet your financial obligations. If you don't need 12 months of this insurance, your business may qualify for a BOP.

Cyber Liability Insurance for Interior Painting Companies

If your painting business has a website, networked computers, or any device connected to the Internet, it can be hacked. When that happens, hackers may try to steal money or data from your company.

Cyber criminals often sniff out vulnerable small businesses and plunder their computers looking for credit card information, payment data for their clients, social security numbers, and other data that can help them steal money from you or your clients.

Luckily, Cyber Liability Insurance (also called Data Breach Insurance or Cyber Risk Insurance) can protect your business, paying for…

  • Fact-finding investigations to determine the source of the attack and where your business's networks are weak.
  • Crisis management to help you deal with the difficult legal requirements when your business exposes private and financial information.
  • P.R. / ad campaigns to restore your business's reputation.
  • Reimbursement for cyber extortion attempts.

All this coverage can be purchased under a First-Party Response Cyber Liability policy.

Errors and Omissions Coverage for Home Paint, Wall Paint, and Interior Decor Painters

Errors & Omissions Insurance (aka Professional Liability Insurance or E&O Insurance) pays for lawsuits when customers claim your business…

  • Made mistakes.
  • Was professionally negligent.
  • Didn't complete a painting job.
  • Delivered shoddy work.

We're certainly not suggesting that your business is prone to poor workmanship. But as you know, some customers can be hard to satisfy.

Many E&O lawsuits are frivolous or unfounded. If a customer sues you claiming you agreed to paint their office a certain way, but failed to do so, it could be your word against theirs. In a courtroom, that's no good.

Errors and Omissions Insurance can pay the cost to defend yourself in court, as well as the settlement or judgment amount that pays damages to your customer.

Workers' Compensation Insurance for Painting Businesses

Painting ain't easy. Painters have to do a lot of hard physical work, which puts them at risk. Fortunately, Workers' Compensation Insurance (commonly called Workers' Comp or Workman's Comp) covers your business when an employee falls off a ladder or suffers another workplace injury. It also covers illnesses your employees may develop after working with paint and chemicals all day.

Among other things, Workers' Comp can pay for…

  • Legal expenses (lawsuits, settlements, judgments, and other costs associated with a Workers' Comp legal action).
  • Employee salary while they cannot work after an injury.
  • Employee medical bills.

While carrying a load of supplies upstairs, one of your employees trips. They smash their shoulder into the steps, dislocating it. For the injury, they'll need surgery and paid time off to recover. Injuries like this can linger. Loose shoulders can continue to slip out of place and require more surgery down the road. Medical costs are unpredictable, but Workers' Compensation Insurance can cover the cost so your business doesn't have to.

Free Insurance Quotes: Small Business Insurance for Interior Painting Companies

Submit our online application, and get a free quote custom-tailored to your interior painting business's needs.

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