Coverage And Costs – Forbes Advisor – Technologist

Painting transforms spaces and inspires imagination. But without proper insurance, the unpredictability of the painting business can quickly turn a dream project into a financial nightmare. For example, while working on a client’s home, you might accidentally spill paint on an expensive carpet or hardwood floor, causing significant damage that requires professional cleaning or replacement.

Think of painting insurance as a customized palette designed to cover your painting business’s specific risks and needs.

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What Types of Business Insurance Do Painters Need?

Painters insurance is a tailored small business policy for painters that covers various risks, such as lawsuits, stolen or damaged tools, lost income and work-related injuries or illnesses. Your painting business’s specific needs will determine the coverage types you should get.

A good place to start is with a business owners policy (BOP). This policy bundles three essential coverages in one plan, which is usually more cost-effective than buying each policy separately.

Here’s what’s in a BOP:

General Liability Insurance

With general liability insurance, you’re covered if you’re held liable for someone else’s property damage or if someone gets injured. It also covers issues like advertising injury and reputational harm. For example, if one of your ladders falls and injures your client’s leg, this coverage can help pay for their medical bills and your legal fees if they sue you.

Commercial Property Insurance

If any of your business property—such as tools, equipment or your building—gets damaged, destroyed, or stolen, commercial property insurance can help cover the cost. For example, if someone steals paint cans and tools from your shop, this insurance will help cover the cost of replacing the stolen items. This type of coverage is also known as business property insurance.

Business Interruption Coverage

If something unexpected like a windstorm or fire hits your workshop and you can’t keep operating your business as usual, business interruption insurance can replace your lost income. It can also cover short-term moving costs if you need to relocate to keep your business running.

Other Small Business Insurance Types

Buying a BOP is a great starting point, but it might only cover some of the risks specific to your painting business. You may need to add other types of insurance to ensure you have sufficient coverage.

Here are some additional insurance types to consider:

Commercial Auto Insurance

If you have a work vehicle, you’ll need commercial auto insurance. This insurance covers liability, which means it pays for property damage and injuries you accidentally cause to others. It can also provide coverage for injuries to you and your passengers. Additionally, a commercial auto policy can cover theft and help pay to repair or replace your work vehicle if it’s damaged in an accident or non-crash event such as severe weather or fire.

Remember that your personal auto insurance won’t cover your vehicle if you use it for your painting business.

Commercial Umbrella Insurance

General liability insurance policies usually have coverage limits that might not be enough in a lawsuit. That’s where commercial umbrella insurance comes in, filling in any gaps when your general liability insurance falls short.

For example, let’s say your business faces a $1 million lawsuit for property damage, but your general liability coverage maxes out at $500,000. In this case, a commercial umbrella policy can cover the remaining amount up to its limits.

Equipment Breakdown Insurance

When your painting projects require specific machinery and tools, equipment breakdown insurance helps cover the cost of repairs and replacements when they unexpectedly break down. This type of insurance doesn’t cover normal wear and tear.

Inland Marine Insurance

This type of insurance covers equipment, tools, materials, and machinery when moved on land via truck or train from one place to another. Inland marine insurance is also known as “property in transit” insurance.

Tools & Equipment Insurance

This insurance covers the cost to repair or replace your tools and equipment if they’re lost, stolen, or damaged. For example, this policy can pay for replacements if someone vandalizes your air compressors and brushes. Some tools & equipment policies even cover rented items.

Professional Liability Insurance

This type of insurance covers your painting business from claims of mistakes or unsatisfactory work, whether the claims are valid or not. For example, if you couldn’t finish a project on time for a client’s store opening and they sue you, professional liability insurance can cover the legal and settlement costs. This type of coverage is also known as errors and omissions insurance.

Workers’ Compensation Insurance

Workers’ compensation insurance for painting businesses covers disability benefits, medical costs and lost wages if employees get hurt or sick on the job. Almost every state requires this policy for businesses with employees.

Surety Bond

If a client claims you failed to honor a contract or botched a project, a surety bond can pay out for claim-related costs. It also covers fraud and theft. You may need one to get a license for specific work.

What’s Not Covered by Painters Insurance?

Many problems are not covered by painters insurance. Here are a few examples:

• Earthquakes and floods (you’ll have to purchase individual policies for each one)
• Government seizures
• Infectious diseases
• Intentional and fraudulent acts
• Radioactive fallout
• War
• Wrongful termination (unless you have employment practices liability insurance)

How Much Does Painters Insurance Cost?

On average, painters insurance costs around $84 per month for a business owners policy (BOP), according to Insureon. The price of your painters insurance policy hinges on factors such as:

• Coverage types and policy limits
• Location
• Number of employees
• Yearly income
• Past insurance claims

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Painters Insurance Frequently Asked Questions (FAQs)