What Insurance Drywall Contractors Need
You measure, cut, and fit drywall sheets for installation on walls and ceilings. As a drywall contractor, you can face problems with the joints, bubbles on the drywall, gaps between sheets, or water damage.
You need drywall contractor’s insurance to protect the business that you’ve built.
Is your drywall contracting business located on King Street West, College Street, Cawthra Avenue, St. Clair Avenue West, Weston Road, Donway West, or Lake Shore Blvd. West?
Do you serve clients in downtown Toronto, Scarborough, Etobicoke, Mississauga, Oakville, Vaughan, Woodbridge, Concord, Richmond Hill, or Brampton?
Wherever your drywall business is located in Toronto, Greater Toronto Area (GTA) or anywhere in Ontario, your Western business insurance expert will give you top-notch insurance advice and ways to save.
How will drywall insurance protect my business?
You need to protect your drywall business from any potential risks it may face on a daily basis. A customer could ask for proof of insurance before hiring you as a self-employed drywaller or as a drywall contracting business.
In Ontario, drywall contractors must have liability insurance to operate. A drywall finisher is also skilled trade in Ontario.
As a drywaller, you know that accidents can happen. When you have the right drywall insurance package it helps provide legal and financial coverage when something goes wrong on the job.
A drywall contractor’s insurance package can help protect you from these 3 common claims:
- As a drywall contractor, your client says you didn’t cover her kitchen floor when installing drywall and you damaged them. The client sues you for damaged property. Commercial General Liability (CGL) insurance would help cover the cost of repairing or replacing the floor.
- You are transporting drywall sheets in your own van and you get into an accident. Commercial vehicle insurance protects you from liability related to car accidents. Your personal car insurance does not cover your drywall business.
3. Your tools and equipment get stolen, putting your drywall work on hold. Your Tools and Equipment insurance policy would help cover the costs to replace the tools equipment.
What’s in a drywall insurance package?
Commercial General Liability (CGL) insurance: This type of insurance protects your business against common claims like third-party property damage (damage to a customer’s property) or bodily injuries if a client slips, falls, and is injured at your drywall business’s premises. CGL can help cover a client ’s medical expenses and your legal fees regardless of the outcome of a lawsuit you face.
Without this type of insurance, you would be paying for these expenses out of your own pocket.
It’s not uncommon for a drywall business to have CGL with a $2-million policy limit. A large drywall company would be expected to be insured for more than that amount, and a single drywaller, less than $2 million in CGL.
Equipment and Tools Insurance: It replaces, or repairs damaged, stolen, or lost equipment and tools, accessories, or other property that you use as a drywall contractor.
Anything valued at less than $1,500 is considered a tool and anything above that limit is considered equipment.
It can also be called equipment floater insurance instead of equipment and tools insurance.
Commercial vehicle insurance: Commercial vehicle insurance protects you from liability related to car accidents in the same way your personal auto insurance does. It also covers bodily injury and property damage to third parties. Your personal car insurance does not cover your work as a drywaller.
Commercial Property Insurance: It keeps you and your drywall business protected from property losses, such as theft or vandalism. You can also add earthquake insurance, sewer backup or flood coverage extensions.
Property you may need to insure:
- Buildings and other structures
- Furniture, equipment, supplies
- Inventory and computers
- Documents such as payroll, accounts receivable
Contractors’ Errors and Omissions Insurance: It’s also called E&O insurance and it protects your drywall business from damages due to faulty workmanship, recall of your work, or use of defective materials.
Cyber Liability Insurance: If your businesses is online, you likely have your customers’ names, addresses and credit card information. If your computer system is hacked, cybercriminals can steal this information and sell it.
Without cyber insurance, you will have to pay out of your pocket for the cost of restoring your system. You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform customers affected by a breach.
Business Interruption Insurance: If there is an insured loss at your drywall business that’s severe enough to prevent it from being open, the expenses associated with getting your business running again will be covered.
This type of policy usually covers vandalism, fire, wind, flooding, and other risks (make sure to understand what your policy covers). Your policy will help compensate you for lost income and expenses that you will need to continue paying even while you are unable to work.
How to avoid common drywall contractor claims
Dust
Dust can be a common insurance claim for drywall businesses. Drywall dust can easily get into HVAC systems and electronics if it is not contained and can be difficult to clean up.
Drywall dust can be a problem especially in buildings with multiple units because it can affect the HVAC system for the whole building. CGL insurance will help protect you if this type of accident happens on your job site.
Always set up containment barriers that contain dust to the area you are working in and seal off air intakes in the area.
Nails and screws
Screws and nails accidentally hitting plumbing or wiring is another common drywall insurance claim. If a screw nicks a wire or pipe, water damage or a short circuit can occur. A screw or nail hitting a pipe can cause water damage, which can be obvious right away or might some years to become apparent. If you suspect a screw has nicked a wire or pipe, remove it immediately and check for damage. CGL insurance helps protect you from this type of claim.
How much insurance does my drywall business need?
It will depend on the size of your business and the kind work that you do. It’s unlikely that all drywall businesses would pay the same rates monthly or annually.
Ask your Western business insurance expert to determine the right level of coverage for your drywall business.
What do I do if my drywall business has an insurance claim?
- Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
- Know your policy so that when you contact your broker you are familiar with what will be covered or not.
- Document the damage. Take photos right away and write down what happened.
- Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
- Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
- Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get your drywall business the right insurance package. Our experts are available now to help you navigate the business insurance journey to protect your business.
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