Flooring contractors, indispensable in remodeling, repairing, and new construction projects for homes and businesses, improve the efficiency and aesthetics of every place they touch. They typically sell and install various flooring materials, such as hardwood flooring laminate, carpet, ceramic and porcelain tile, because of how they work, which includes manual work, exposure to environmental contaminants, and the possibility of property damage, flooring contractors might require specialized insurance to guard against the risk of liability.
This article reviews the potential dangers flooring contractors might face and the most common forms of construction insurance to consider.
Potentially Exposed
It can be challenging to manage the risks involved in the construction industry. Here are some of the most frequent dangers flooring contractors could confront:
- Injury – Flooring contractors are at risk of slips and falls on slippery surfaces and damages caused by carrying different substances, like carpet and tile. Other parties can get hurt in construction locations if the flooring is unfinished.
- Property Damaged – As flooring contractors generally perform jobs at the homes of others and businesses, damages to a customer’s property could occur during and after the project gets completed.
- Auto Accidents – Any company that uses vehicles is vulnerable to automobile accidents. Accidents can cause severe injuries or even fatalities. In addition, the cars involved in an accident may be completely useless due to significant damage.
Most Common Types of Construction Insurance
Flooring contractors must have sufficient insurance to protect themselves from risks. The most important types of insurance that these contractors should consider include the following:
Workers’ Compensation
Insurance for workers’ compensation pays for expenses resulting from employees’ accidents or illnesses that result from their job. Because flooring installation can be physically demanding, workers are at risk of knee or back injuries or suffer injuries from tools like saws and nails, or hammers. While damages are rare, they can be severe and require extensive medical attention, resulting in a loss of capacity to work. Workers’ compensation insurance is essential since it provides care for injured employees if an incident occurs. It will cover medical expenses resulting from workplace injuries and provide compensation for employees’ lost wages, which could occur when injuries are severe enough to warrant doctors’ use of off time. Additionally, Workers’ compensation policies usually include employers’ liability coverage. It could protect employers should lawsuits be filed against them due to their negligence in workplace accidents.
General Liability
General liability insurance covers third-party injuries or property injuries caused by routine activities. Flooring contractors may be subject to liability risks if they work in occupied buildings or when clients visit their showrooms or offices. This kind of insurance may protect flooring contractors if customers slip and fall on the flooring. General liability insurance can also save a customer’s property caused by contractors. In addition, it may protect against publicity damage or reputational damage.
Operation Completed
Completed operations claims arise when damage to property or injury results from work completed. This insurance can get used to protect companies that provide services. It only applies once their work gets completed. For instance, problems can occur if flooring contractors fail to conduct a proper moisture test before the start of the project, which can result in damaged floors in the future. Suppose the flooring gets installed improperly or the flooring materials need to be of better quality. In that case, the completed work could reduce the liability risk.
Commercial Auto
Flooring contractors can utilize vans or box trucks for transporting employees’ equipment, materials, and other items to work sites, which can cause a variety of auto-related risks. Commercial auto insurance may get used to cover damages to company vehicles and damage to other cars, as well as medical costs arising due to auto accidents. Physical damage insurance protects against damages to company vehicles, and liability insurance protects injuries that other cars suffer. The coverage for non-owned and hired vehicles covers employees’ and rental vehicles used for business use.
Property
Even if flooring contractors operate in their homes and don’t have their facilities and business assets like computers, equipment, and tools remain susceptible to damage to property. Physical assets, such as businesses and buildings, could cause property damage. The fire risk is more significant for flooring contractors when they store flammable substances like stains and wood flooring. Property insurance only covers the risks outlined within the policies. For instance, floods are generally not considered to be covered circumstances. In some cases, the need for additional coverage gets required.
Inland Marine or Equipment Floating
Commercial property insurance is only for businesses’ property in the area listed on the policy; in-water marine insurance could get needed for items lost or damaged in transport. Equipment floater policies may also protect from transportation-related risks. Flooring contractors generally go to work sites using equipment and tools, including forklifts and installation tools.
Cyber Liability
The flooring industry is increasingly relying on technology to manage its work. In the end, large-scale projects typically require digital information transfer and financial exchanges that get not mediated between contractors, client suppliers, and other third-party suppliers. While technology can assist contractors in performing these tasks, it also could increase the risk of suffering financial losses due to cyber-related events. Cyber liability insurance may aid flooring contractors by covering third-party and first-party cyber-related claims.
Conclusion
To minimize their risk, flooring contractors must research every policy option to find adequate coverage tailored to their needs. Contact Commercial Insurance Ottawa at (613) 454-5640 or email us at info@commercialinsuranceottawa.com today.