Flooring Contractor Insurance: What you need to know

Posted by Matt Simon on Oct 20, 2016

Are you a flooring contractor trying to figure out how to protect your business and comply with insurance requirements, all within your budget?

Then read on...

Owning a flooring installation business can be hectic and stressful. You install a variety of materials, including tile, hardwood, linoleum and carpeting for a variety of residential and business clients.

Not to mention, you have to manage employees, schedules and supplies.

Any good flooring installation starts with a solid product, and a great installation contractor. And as a flooring contractor, you know you have a responsibility to provide both.

Your business might consist of a retail or office space for your customers to select the products they want.  Maybe you’re just responsible for providing the installation services at the customer’s location.  Or perhaps you sell the product, and provide the installation services.

Wherever you find your business on this spectrum, the fact is, you face serious risks on a daily basis that if not addressed properly, could cause a major hit to your finances… or even worse, put you out of business.

You have a lot to think about and we can help. Protecting the business you've built, before a loss happens that could force you to suspend or lose work, requires due diligence on your part, and a Licensed Insurance Advisor that truly understands your industry. 

Like any other business, flooring installers need a variety of insurance coverages to ensure their operation is protected. Additionally, rules and coverages can vary from state to state, so understanding Ohio Flooring Installation Insurance is essential.

Commercial General Liability Insurance

As a flooring installation contractor, a Commercial General Liability (CGL) insurance policy is a must.  It would protect when lawsuits or financial losses occur.

A typical CGL policy provides coverage for claims of bodily injury or other physical injury, personal injury (libel or slander), advertising injury and property damage as a result of your products, premises or operations.

For example, you install new carpeting throughout the entire house of your client. At the completion of the project, there's one area where the tack strip is exposed and it goes unnoticed for several days. Then you get the call from your client, furious because her toddler stepped on the exposed tack strip and needed to be taken to the ER.

What would you do if you received this type of phone call?

Maybe you think you’re in the clear because you subcontracted the installation to someone else.  Unfortunately, that’s not the case… you can still be held liable even though you didn’t actually complete the installation.

And if you did the install, well then it’s pretty clear that you’re liable.

The good news is, you’re a responsible business owner.  You made sure you had the right General Liability Insurance in place. Your policy covered your legal expenses, and even took care of the medical expenses suffered by your customer.

But without CGL coverage, a business would be on its own to handle the legal expenses – which are costly – and any judgment against the business.

As a safeguard against liability, CGL enables you to continue your normal operations while dealing with real or fraudulent claims of negligence or wrongdoing. CGL policies also provide coverage for the cost to defend and settle claims.

Commercial Auto Insurance

Commercial Auto Insurance is another important policy that all Ohio flooring installation businesses must consider because you’re relying on vehicles to get you from one client to another.  Doesn’t matter if you have one truck, or a fleet of 100, you still need Commercial Auto Insurance.

The trucks or trailers that you’re using to haul your equipment and materials should be insured. A Commercial Auto Policy can be used to insure vehicles for:

  1. Liability – this would protect the business owner in the event of an at-fault accident where the owner, or any employees, caused injuries to others while driving a company vehicle
  2. Physical damage to the vehicles owned by the business if they’re involved in an accident, stolen or vandalized
  3. Or both Liability and Physical Damage

For example, one of your employees could be hauling a trailer with all the flooring for a new project, and they’re involved in a severe collision with another driver.

Your employee is at fault, there is extensive damage to both vehicles, all the flooring materials are damaged and there will be medical expenses for both drivers.

Your Commercial Auto policy could cover the property damage, the medical expenses and any potential legal costs involved.

Contractor’s Equipment Insurance

Flooring installers usually have a fair amount of tools and products to be installed.  These items could be located at your business, in one of your vehicles, or on the job. Because these items move around, the best way to insure them is with an Inland Marine Insurance policy (also known as a Contractor's Equipment policy or floater).   

For example, you left tile, hardwood and carpeting that needed to be installed at your customer’s site, along with all of your tools, locked in the jobsite trailer overnight. When you returned in the morning, the trailer was gone.

An Inland Marine policy would cover the costs even though the theft didn’t occur on your business premises. 

If you were relying on your Commercial Property policy to cover your loss, you’d be very disappointed to learn that you had no coverage because the loss occurred away from your business premises.

Conclusion

Finding the best insurance policy for Flooring Installation Contractors in Ohio, and figuring out the types of coverage needed to protect your business, can be confusing, time consuming and difficult.

However, the right insurance protection is still critical to the success of your business.  Without it, you're one claim away from being out of business.

And remember, not all policies are created equal.

You probably wouldn’t go to your eye doctor instead of your dentist if you were having a toothache, right?  Just because they’re both doctors doesn’t mean they have the same skillset.

Just the same, you need an Insurance Advisor that understands your industry, your risks of loss, and how best to protect you and your business.

We can help.

We know the industry, we understand your needs, and we work with multiple insurance companies so we can deliver the insurance solution that’s perfect for your business, and your budget.

When you have confidence in your business insurance, you have greater peace of mind knowing that you can keep working to generate revenue, even when disaster strikes. 

To get started on your customized solution, contact one of our Licensed Advisors, or Request a Proposal and we’ll get to work right away.

Category: Business Insurance (3), Commercial Auto Insurance (3), General Liability Insurance (3)