Contractors Liability Insurance is one of the most important forms of coverage for painting contractors. Moreover, it protects your business in the event of a liability claim. A third party claim can ruin your business.
Let’s talk through the details of this coverage, and why it is so important.
What is the definition of Contractor’s Liability Insurance?
This is liability insurance. Its purpose is to assist your painting contractor business when sued. It covers you for claims of causing bodily injury to a third party or damage to their property.
What coverage does Contractors Liability insurance provide?
Contractors Liability Insurance protects painting contractors for claims of bodily injury, damage to property, reputation damage, and advertising mistakes. Some examples of the coverage provided are:
- An employee knocks over a tin of paint onto your client’s carpet. The client comes to inspect the damage and slips on the paint. Consequently, he falls and breaks his arm. This coverage would pay for the medical costs as well as the cost of repair.
- You post a picture of your paintwork in a client’s home on social media. The client has not given you permission to do so, and they sue you for violation of privacy.
- In your latest advert, you include the logo of some of the products that you use in your work. You do not have permission from this supplier for the use of their logo, and subsequently, they sue you.
Contractors Liability coverage assists with the cost of your defense team in the event you’re sued. Above all, this includes legal fees, costs of evidence, and witness fees. It also assists with the settlement costs.
What’s NOT covered by Contractors Liability Insurance?
It is important to be aware of what’s not included in this insurance. You may need additional coverage. Indeed, there are two important areas not covered by this insurance:
- The first is liability that arises out of your professional services. Consequently, if you provide incorrect advice in your capacity as a painting contractor and client suffers a loss as a result, they could lay a claim of professional liability against you. Errors and Omissions Insurance covers this. This is also known as Professional Liability Insurance.
- The second is injury to your employees. Workers Compensation covers this. It assists with medical care costs. Additionally, it assists with the loss of income suffered by the employee. This is mandatory coverage. You can face a hefty fine (and costs) if you do not have it and an incident occurs.
Do painting contractors need this liability coverage?
Moreover, there are many reasons why liability insurance is valuable coverage for your painting contractor business. Some of these include:
- Many clients want the reassurance that you have this coverage in case of an accident
- In the event you’re sued, your painting business’ protected
Speak with Farmer Brown Insurance
Do you have questions about painting contractor insurance? Farmer Brown Insurance can assist you with your Contractors Liability Insurance. Call Farmer Brown Insurance on (888) 973-0016.