Drywall Contractor Insurance

Here are some of the factors that determine insurance premiums for drywall contractors during the underwriting process:

• Services offered. To evaluate your risks, insurance providers will look at the services you offer, such as hanging sheets for brand-new buildings or conducting repairs.
• Business property and equipment. It'll cost more to insure an office or a large inventory of drywall than basic supplies brought to clients' homes.
• Number of employees. A larger workforce brings a higher risk of accidents and lawsuits, which raises the cost of workers' compensation, general liability, and similar policies.
• Business size and revenue. Bigger businesses that bring in more revenue are associated with higher risks and more frequent claims, which results in higher insurance costs.
• Business location. Crime rates, population density, healthcare costs, property values, and other regional factors affect how much you pay for business insurance.
• Policy limits and deductibles. Policies with higher limits cost more but cover more expensive claims. Choosing a higher deductible can lower your premium, but your insurance won't activate until you pay the full amount.
• Claims history. A contractor who has filed an insurance claim in the past will pay more for insurance than one with a clean history of claims.

Yes, you can extend your general liability coverage to subcontractors and others with an additional insured endorsement on your policy. If a subcontractor you hire accidentally breaks something or causes an injury, this endorsement would ensure you're both protected against damages and legal costs.

Another option is a controlled insurance program (CIP). Also called wrap insurance, CIPs bundle general liability, workers’ comp, and other types of coverage into one project-specific policy for all contractors and subcontractors involved.

There are two types of coverage options for CIPs:

• Contractor-controlled insurance program (CCIP): With CCIPs, the general contractor purchases and manages the policy. This option streamlines claims and is typically cheaper when the risk is assumed by an experienced general contractor.
• Owner-controlled insurance program (OCIP): OCIPs are purchased by the project or property owner. This option is often used for larger projects as they tend to be more expensive and offer broader coverage.

Drywall installation companies often need other insurance products to fully protect their business from unexpected risks, both on the job and after a project is complete.

Here are some additional types of coverage to consider:

• Business personal property (BPP) insurance covers items like tools, equipment, computers, and furnishings at your primary business location. If you don't own an office, you can buy BPP coverage as an endorsement to your general liability policy to protect your business assets.
• Business interruption insurance, also called business income insurance, provides reimbursement for lost income and day-to-day operating expenses if your business is forced to close temporarily due to a burst pipe or other covered property damage claim.
• Employment practices liability insurance (EPLI) pays for legal costs related to claims of unfair hiring practices, wrongful termination, and other violations of employee rights.
• Products-completed operations coverage, also known as product liability insurance, covers the cost of repairing physical damage caused by a defective product or faulty workmanship. It's usually included in general liability insurance.
• Hired and non-owned auto insurance (HNOA) provides liability protection for personal vehicles driven for work purposes. It also covers leased and rented vehicles used for business.
• Surety bonds reimburse your clients for financial losses if your company is unable to fulfill the terms of its contract.
• Contractors pollution liability (CPL) insurance is a type of environmental insurance that covers pollution liability risks for contractors, such as dust from a construction site that impacts neighboring properties.
• Commercial umbrella insurance, similar to excess liability insurance, boosts coverage on your general liability, commercial auto, or employer’s liability coverage once the limit is reached. For installers working on high-value properties or commercial projects, this added layer of protection can be crucial or even required.

Installation contractors and businesses can save money on insurance by comparing quotes from different providers. With Insureon, you can get free quotes from top-rated insurance companies by filling out our easy online application.

Other ways to save money include:

• Bundle policies. Small business owners can often buy general liability coverage and commercial property insurance together in a business owner's policy, which costs less than buying the policies separately.
• Customize your policies. Choose lower coverage limits or a higher deductible to reduce your premium, but make sure your policy can still cover a potential claim.
• Avoid accidents and claims. Drywall installation businesses can prevent employee injuries and customer accidents that lead to claims by implementing a strong risk management strategy that includes employee training and strict enforcement of safety protocols.

Our licensed agents can help you find the right insurance solutions for your budget and your business needs, whether you repair drywall in homes or tackle large commercial projects.