Table of Contents
Several policies, such as General Liability Insurance and commercial vehicle, are included with painters insurance. The entire cost of a business owner’s policy (BOP) with commercial auto for a one-person operation ranges from $1,170 to $3,500 per year, depending on whether the work is interior, exterior, or a combination of both.
Comparing quotes from many carriers is one of the greatest methods to obtain inexpensive painters insurance.
Costs of Painters’ Insurance
Costs of Painters’ Insurance can vary greatly, in part because some businesses need more than one policy. Buying both General Liability Insurance and commercial property would cost you around $1,170 to $9,850. Buying other coverages increases your overall costs.
Furthermore, painters with more staff, larger profits, and riskier enterprises pay more. A painter who employs people, for example, would almost certainly want workers’ compensation coverage. Workers’ compensation rates are partly determined by payroll, therefore more employees equal higher premiums.
How Business Operations Impact Costs of Painters’ Insurance
In any sector, business operations have a significant impact on insurance rates, but for painting contractors, it might be the difference between obtaining an offer and not. Many insurers will offer coverage for interior painters, but not for exterior painters, especially if the task takes them above three floors since they are more likely to injure others or themselves.
Even insurers that specialize in writing coverage for exterior painters sometimes demand a higher premium. We obtained bids from two painting contractors, one who only performs outside painting and the other who only does inside painting, to highlight the differences. Here’s what we discovered:
- The cost of General Liability Insurance for an interior painter ranges from $530 to $870 per year.
- The cost of General Liability Insurance for an outside painter ranges from $1,183 to $1,925 a year.
While not a scientific research, the findings clearly suggest that even if an outside painter is able to secure an offer, the premium would be substantially greater.
Painters Insurance: How to Save
Costs of Painters’ Insurance can vary greatly, so the first step to saving money is to compare quotes from top painters’ insurance carriers. Most should be able to offer painters a special package called a BOP that combines General Liability Insurance, property insurance, and business interruption coverage at a reduced rate. Our research puts the higher end of the General Liability Insurance premium range at approximately $1,700 per year, but a similar business might pay another $100 to $200 for a BOP that bundles multiple policies.
Painters insurance policies
Because each sort of company insurance covers a specific type of damage, painters must assess their risk in order to decide which coverage they need. Most painters, for example, need General Liability Insurance insurance in the event that a third party, such as a vendor or a client, sues them for physical harm or property damage. Some of the most popular insurance and what they cover are listed below:
General Liability Insurance
General Liability Insurance insurance covers third-party bodily injury, property damage, and reputational harm. A third party is essentially anyone who doesn’t work for your business, so General Liability Insurance covers events like:
- A consumer filing a lawsuit for medical costs after you drop a paint can on their head.
- The expense of replacing your customer’s new flat-screen television after your helper crushes it with a ladder.
- When your paint peels and bubbles after you finish the work, a client accuses you of bad judgment.
General Liability Insurance is an essential policy for most businesses, but it’s especially important for painters because they work at customers’ homes and offices. Also, some states require General Liability Insurance to obtain a painter’s license.
Property Insurance for Businesses
Property Insurance for Businesses pays to repair or replace business-owned property, such as ladders, sprayers, brushes, and scaffolding, if it’s damaged by a covered event. Normal wear and tear aren’t covered by property insurance, but painters can typically get office space and equipment covered if they’re damaged by events like fire, theft, and vandalism.
Many painters and independent contractors who keep equipment in business cars make the mistake of thinking that their auto insurance covers goods taken from the trunk. This isn’t correct. Instead, painters need inland marine coverage, which is often included in painters’ property insurance.
BOP
For cost-efficiency, many small business owners consider getting a BOP instead of separate General Liability Insurance and Property Insurance for Businesses policies. Getting a BOP will help painters cover their businesses from claims resulting from fire, theft, or other disasters. If you’re a painter with a one-person business, a BOP won’t only save you money but also give you the best coverage, especially for claims that can arise from your business operations.
Insurance for Commercial Vehicles
Insurance for Commercial Vehicles helps cover repair bills and medical costs related to auto accidents, depending on the type of coverage you add to your policy. Most states require drivers to have some liability coverage, but painters can also choose additional coverage like collision, comprehensive, uninsured and underinsured motorist, and medical payment insurance.
Painters who use their own automobiles for work may not be protected by their personal auto insurance coverage. Most personal vehicle plans do not cover business usage because insurers consider business driving to be riskier than personal driving.
Bond of Surety
A Bond of Surety is a financial guarantee between three entities:
- You, the company owner, or the principle
- The obligee (or customer) who requires you to get a bond
- The surety, often known as the bonding firm, is the entity that provides the bond.
By issuing a Bond of Surety, the bond company is guaranteeing that you’ll perform a job ethically and according to your client’s requirements. If your client files a claim, the bond company covers the client’s damages but expects you to reimburse the costs.
Compensation for Employees
Most states require painters with employees to get Compensation for Employees insurance to cover their staff’s work-related injuries or illnesses. Coverage typically includes medical bills, lost wages, and rehabilitation services. Coverage requirements vary by state—there are penalties for not having a policy if you’re supposed to, so it’s a good idea to learn your state’s requirements.
State-by-State Insurance Requirements for Painters
Painters insurance is a fantastic idea whether you’re a one-person company or have a team of 50 since it protects your business assets if anything goes wrong. Some jurisdictions, however, require painters to carry certain insurance or bonds before they may get a license or register their firm. You may obtain a short summary of the criteria in your state by clicking the link below.
Note: The information provided is only the requirements to get a state license or register with the state. Cities and counties may have additional requirements. Moreover, most states mandate employers to carry Compensation for Employees, even if they don’t require it for a license.
Conclusion
Whether you’re an individual contractor, a home or commercial contractor, or an interior or exterior expert, painters insurance is a good investment. Each painting business’s insurance needs will be different, but all businesses need some amount of coverage.
It’s critical to locate the correct insurance provider to guarantee that you obtain the coverage your company need without overpaying. CoverWallet is an insurance broker that sells insurance plans using a user-friendly smartphone. Answering a few easy questions can assist them in locating the best insurance provider for your company’s requirements.
