Risk is part of running a business as a painting contractor. But it does not mean you can minimize the effect it has on your company. One of the first things you need to do as a business owner is getting insurance coverage. However, getting the right coverage is never easy. With different types of business insurance available, how do you know which one to get? That is why some would forego this very important step and start operating a business without insurance.
Why do you need insurance in the first place?
Liability insurance is one of the most common types of policies designed to protect business interests. In general, it provides protection for claims filed against you for a work-related injury, damage to property, and other incidents. But in addition to these, you may also need to apply for painters insurance before you can get a business license. Also, some big contracts require that the contractor has liability insurance before they can bid.
Does liability insurance differ for painting contractors?
A significant risk painting contractors are exposed to is causing damage to property. When this happens, general liability insurance should be able to cover the cost of repairs or replacement. Accidents that cause bodily injury is also quite common in this industry. Liability insurance will not only pay for the expenses incurred during hospitalization but will also cover monetary claims filed through a lawsuit.
In addition to general liability, a painting contractor may also opt for additional insurance coverage for their business property, company vehicles, and employees.
What happens if you do not have insurance?
Insurance is synonymous with protection, which means that if a business does not have coverage, it is exposed to all possible risks. The following are only a few of the dangers you need to avoid by making sure that your business has coverage.
- Financial ruin caused by covering lawsuit charges and all expenses resulting from damage to property and physical injury.
- Compensating employees who get injured at work out of your pocket
- Unable to secure large contracts that require insurance coverage.
- Unable to secure a license to operate in states or cities that require painting contractors to have insurance.
- Fail to secure clients who prefer to hire contractors with insurance
- Employees may choose to work elsewhere if the company does not have general liability or worker’s compensation insurance
- Damaged reputation
You may not know it yet, but the cost of paying for a lawsuit, including compensation for simple damage to property claim, is enough to put a small painting contractor out of business. That is why insurance coverage is considered a necessity for any contractor.
If you are confused about the level of coverage your company needs, you can begin by assessing your company’s operation and consult with an insurance specialist. Explain the kind of contracts you typically accept and if you have any plans for expansion. From here, the specialist should be able to determine the risks your business is exposed to so that he can recommend the right policy with sufficient coverage.