What are the specific insurance coverages tile contractors need to consider when purchasing an insurance program?
How do you get the most competitive rate in the marketplace for your tile contracting insurance program?
This article will answer these questions and more.
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Tile Contracting Insurance
When it comes to tile contracting insurance, there are a couple of things you need to consider before you purchase.
The good news is, that insurance carriers have a long history of insuring tile contractors. This means you will a good number of options when it comes to choosing the right insurance program.
General Liability Insurance
You’ve probably heard of general liability insurance. There is a good chance you’ve had general liability in the past or worked for a company with general liability.
Regardless, general liability is a MUST for tile contractors.
General liability has two coverages that are important to understand: Premise liability, which is going to cover your location (i.e., office or storage facility), and Products-Completed Operations liability which is going to cover your work after you’re done, and you leave.
These coverages are going to have separate liability limits listed on the policy. You want to ensure you have at least $1,000,000 in coverage at a minimum.
Commercial Umbrella Insurance
Our best advice is to add a layer of liability and get a commercial umbrella policy. We live in a highly litigious environment where claims are pushing up through that base layer $1,000,000 of general liability and into the commercial umbrella.
Additionally, a commercial umbrella sits over the top of your worker’s comp and your commercial auto, providing a nice layer of additional coverage if something terrible happens, which is why we have insurance in the first place.
As business owners, we purchase insurance to improve the sustainability and longevity of our business. This is why we highly recommend you consider commercial umbrella insurance.
Another coverage you want to think about is crime coverage. If you have employees, if you have multiple crews, if you’re going into clients’ businesses or homes, and there’s the potential that an employee could steal something, that’s where crime coverage comes in.
Understand that if you choose not to purchase crime coverage, most non-BOP, non-business owner insurance policies, such as a straightforward general liability policy, it is not going to pick up crime exposure.
Crime coverage is something to consider if you have employees, crews going into people’s homes, things happen, and you want to protect your business. I know it’s never nice to think about your employees stealing. It’s easy to say my employees would never do that, which hopefully is true, but things do happen.
Suppose you have valuable equipment that you’re either leaving on-site or is in transit in vehicles or you keep in a shop. In that case, an inland marine or a property insurance policy is necessary.
Don’t assume that your gear, equipment, or inventory, if you keep inventory in a shop or something, don’t assume that you have coverage for your stuff.
You need a specific property insurance policy to guarantee coverage if something happens to your stuff.
Contractors' Errors & Omissions Insurance
The last coverage we need to discuss is contractors’ E&O insurance or professional liability.
This is a coverage that not many contractors even know exists, but there is a major gap in coverage if you take on a design role in a project.
If you’re designing, if you’re making design decisions, if you’re using your expertise or experience to make decisions on where something should go or how it should be set up, you have a contractor’s errors & omissions exposure.
The contractor’s E&O insurance covers the impact of a design decision on a potential loss for your customer.
If something happens and it’s based on a design decision, understand that there is most likely a gap in your general liability where you will not have coverage for that. If that happens, the fallback is contractor’s errors and omissions insurance, which is professional liability coverage, similar to what accountants or lawyers would have. When you use your professional expertise, there will be a professional liability loss.
We highly recommend you consider that coverage.
Cost of Tile Contractor Insurance
The key to getting the best rates, the most competitive rate, is to find an insurance provider that wants to write your business. That might sound obvious at face value, but here’s the nuance, there are a lot of companies that will write a tile contractor, but that doesn’t mean that all of those companies want to write tile contractors insurance.
Just having access to a company does not mean that company is going to have the most competitive rate or the most competitive rate consistently, which is a big key.
You want to find a company that’s NOT going to be jacking your rates around every year because that consistently long term is how you protect your business because you’re not jumping from insurance company to insurance company.
You’re not having to deal with constant rate changes. This isn’t always easy, but that is the key to getting the most competitive rate long-term.
Tile, stone, and flooring installer insurance are designed to protect your business.
Rogue Risk is a one-stop shop to help you get the tile contracting insurance you need to protect your business from accidents, injuries, legal fees, and damaged vehicles.
Our insurance packages typically include:
- General liability
- Contractors’ E&O insurance
- Commercial auto
- Workers’ compensation
- Tools and equipment
- Commercial property
This is exactly what we do at Rogue Risk.
We’re artisan contracting insurance specialists.
If this is the kind of relationship you want with your insurance provider, we would love to talk to you.
- You can call or text us at 518.960.6600
- Click here to contact us via email.
I look forward to introducing you to a new way of viewing your insurance program.