Flooring installation businesses face unique risks whether they sell, deliver, or directly install flooring. Understanding and securing the right insurance policies is crucial to protecting against potential financial losses from property damage, accidents, or lawsuits. Proper insurance can also ensure the business can continue operating smoothly in the face of claims.
It’s important to note the different risk exposure levels involved with various flooring installation operations. For instance, a retailer who also performs installation will have a much heavier exposure than one who uses subcontractors exclusively for delivery and installation purposes. By working closely with the right insurance carrier who understands these nuances of the trade, flooring installers can protect their assets and reputation while minimizing insurance costs.
In this article, we’ll delve further into the essentials of flooring installer insurance with insights from Thomas McMillan, commercial lines staff underwriter at Central Insurance.
The Essential Insurance Coverage Every Flooring Installation Business Needs
McMillan outlines the four insurance policies every flooring business needs and those that might be a good fit depending on your organization.
1. Property Insurance
Commercial property insurance is essential for flooring installers with showrooms due to the significant fire load from storing materials like wood and adhesives. Unlike contractors in other trades, flooring installers face heightened fire risks, necessitating robust property insurance to cover potential damages to their owned or rented premises.
“The showroom is not just a place to showcase products but also a storage area for inventory,” McMillan explains. “This dual purpose heightens the risk, particularly with flammable materials. Property insurance not only covers the building itself but also the valuable contents inside.”
Learn More about commercial building Insurance if you operate a retail showroom
2. Automobile Insurance
Automobile insurance, particularly auto liability, is critical for flooring contractors who travel regularly to and from job sites. This coverage protects against claims arising from accidents that occur while transporting materials or your employees. Additionally, non-owned Auto Liability coverage can protect the business if an employee causes an accident while driving their vehicle for work purposes.
Because flooring installation often requires transporting large, heavy materials, Auto Liability insurance will protect your business from the financial consequences of accidents. “Imagine a scenario where a company truck, loaded with expensive hardwood, is involved in a collision,” McMillan offers. “Without adequate insurance, the costs could be devastating, covering not just vehicle repairs but also potential third party medical expenses and legal fees.”
Did You Know? As of 2023, there are 122,016 flooring installer businesses in the U.S.
3. General Liability Insurance
General liability insurance is a cornerstone of risk management for flooring installers. General Liability covers premises and operations exposure, protecting against third-party claims of bodily injury or property damage. For instance, if a client trips over improperly installed flooring or a defect in the product causes damage, this insurance can cover the consequences that come as a result. This coverage is crucial for the job site and the contractor’s showroom, where customers and vendors frequently visit.
Flooring installers will have a significant liability exposure at the jobsite and for any owned, occupied, or rented facilities like a showroom. Third parties can include homeowners, other contractors, and employees working in a commercial building where the installation is being performed. Working with an experienced company like Central can help you navigate your business’s risk exposure to ensure that it stays solvent even when unexpected incidents occur.
Learn More: What Commercial Insurance Policy Does My Business Need?
4. Workers’ Compensation
Workers’ Compensation insurance is vital for protecting flooring installation employees from injuries sustained on the job, such as those caused by heavy lifting or cutting tools. This coverage not only protects employees but also helps employers manage the costs associated with workplace injuries.
“This trade is physically demanding, with workers often lifting heavy materials, kneeling for extended periods, and using power tools,” McMillan states. “ Injuries in this field can range from minor cuts to more serious conditions like carpal tunnel syndrome or back injuries. Workers’ Compensation provides financial support for medical treatment and rehabilitation, helping employees recover and return to work.”
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Additional Insurance Coverages Beneficial to Flooring Installers:
- Pollution: Covers spills of adhesives or other chemicals.
- Employment Practices Liability Insurance (EPLI): This policy safeguards the business against claims of wrongful termination, discrimination, or harassment.
- Crime: Covers theft, including employee theft of specialized equipment.
- Inland Marine: Protects tools and materials in transit, even for equipment like forklifts.
Risk Mitigation: Protecting Your Business and Budget
Implementing safety controls and proper hiring practices can significantly reduce insurance premiums and the likelihood of claims. McMillan recommends utilizing telematics in vehicles, ensuring proper safety training, and having clear contractual controls with subcontractors as effective strategies.
Central provides loss control services that walk hand-in-hand with flooring installation companies to help improve risk controls and workplace safety procedures and provide guidance on mitigating future losses. While there can be some costs with implementing these risk controls up front, the long-term effects are advantageous to your bottom line.
Insure Your Flooring Installation Company With Central
Choosing Central Insurance as your provider is crucial for flooring contractors to safeguard their business operations and financial stability. Central excels in claims service, providing responsive and diligent support to ensure peace of mind when issues arise. Given that nearly every contractor will eventually file a claim, partnering with a carrier like Central, which prioritizes taking care of its insureds, is essential for long-term success and security.
Contact your local independent Central agent for more details about flooring installer insurance or an insurance quote.
