Why do insulation installers need insurance?
Business insurance helps pay for medical bills if a worker inhales fiberglass or falls off a ladder. It also covers legal defense costs if a customer is injured, or your truck gets into an accident while transporting insulation. State laws, leases, and contracts often require coverage.
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What types of insurance do insulation contractors need?
These insurance policies cover the most common risks faced by insulation installation contractors and businesses.
General liability insurance
A general liability policy covers common third-party risks, such as a client who gets injured by a contractor's fiberglass. It may be required for a commercial lease, loan, or contract.
- Client bodily injuries
- Accidental damage to client property
- Products-completed operations coverage
Business owner's policy
A business owner's policy, or BOP, is a cost-effective way for insulation installers to buy general liability coverage and commercial property insurance together.
- Customer injuries
- Damage to your building or its contents
- Business interruption coverage
Workers’ compensation insurance
Most states require workers' comp for insulation installation companies that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Legal fees from employee injuries
Commercial auto insurance
This policy covers financial losses in an accident involving an insulation contractor's van or other vehicle. Most states require it for vehicles owned by a business.
- Injuries caused by your vehicle
- Property damage caused by your vehicle
- Vehicle vandalism and theft
Tools and equipment insurance
This policy covers an insulation contractor's power saws, caulking guns, and other items that travel to worksites. It's also called inland marine insurance.
- Hand tools and power tools
- Equipment, such as insulation blowing machines
- Personal protective equipment (PPE)
Cyber insurance
Cyber insurance helps cover the cost of a data breach or cyberattack at your insulation installation business. It's sometimes called cyber liability insurance or cybersecurity insurance.
- Data breach notification costs
- Fraud monitoring services
- Cyber incident investigations
How much does insulation installation insurance cost?
An insulation contractor who works independently will pay less for insurance coverage than a larger business.
Factors that affect installation contractor premiums include:
- Your specialty, such as handyman or drywall contractor
- Value of your spray foam rigs, blowing wool machines, and other equipment
- Annual business revenue
- Policy limits and deductibles
- Coverage options, such as an additional insured
- Claims history
How do I get insulation contractor insurance?
It's easy to get insurance for insulation contractors and companies if you have your business information on hand. Our application will ask for basic facts about your company, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
- Fill out our free online application.
- Compare insurance quotes and choose a policy.
- Pay for the policy and download your certificate.
Insureon's licensed insurance agents work with top-rated U.S. insurance companies to find affordable coverage that fits the risks of installing insulation, whether you're a contractor or an employer.
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FAQs about business insurance for insulation installers
Review answers to common questions about insurance products for insulation contractors.
Do insulation installers need a license or certification?
To install insulation, you might need a license, a certification, vocational classes, or experience in the field. All of this depends on the laws in your state, which might also require insurance and bonds for the work you do.
Some states will require you to get a general contractor's license in order to install insulation. In other cases, you can work as a subcontractor under a licensed general contractor without needing your own license.
In addition to a trade license, you might need to obtain a business license from your city or other municipality. Insulation contractors also need to comply with local laws regulating asbestos and other hazardous materials.
What other types of coverage are recommended for insulation contractors?
Installation professionals often depend on the following types of coverage, in addition to those mentioned above:
- Professional liability insurance: This policy provides financial protection against accusations of professional negligence, such as insulation installed too close to a chimney that catches fire. It's also called errors and omissions insurance (E&O).
- Commercial umbrella insurance: Umbrella insurance boosts the coverage of other policies once they reach their limit, such as general liability insurance, commercial auto insurance, and employer's liability insurance.
- Installation floater insurance: If your rolls of fiberglass or other materials are stolen or damaged at a jobsite, this property coverage will help pay for your losses. It covers materials in transit and stored off-site, which is important since commercial property insurance only covers items at a fixed business address.
- Surety bonds: A surety bond acts as a financial guarantee that your insulation business will fulfill the terms of its contracts and comply with regulations.
- Contractors pollution liability insurance: This policy provides financial protection in the event of a lawsuit related to pollution caused by your business, such as improper disposal of asbestos.