5 Factors that Impact Painting Contractor Insurance Prices

Are you in the market for the perfect insurance coverage for your painting contractor business that will protect your business in case of any catastrophic loss? While you may want to find the best price, as we all do. Don’t let price dictate which coverage you select; you must also ensure that you’re not doing yourself and harm by under-insuring your business and subsequent activities.

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Know what factors to be on the lookout for and what insurance coverage will be the best fit for your business. Want to know more? Read this excellent article that lays it all out for you.

5 Factors that impact your insurance prices

1. Job site

Your job site and its working environment are a significant factor when it comes to insurance pricing. Ensuring all safety guidelines and best practices will provide you the best possible rates. For this reason, and as a matter of course, you should tour the site and do a thorough inspection. All workers should be using all safety precautions so as not to put themselves at risk. As a company, all employees should be covered by Workers Compensation. 

General Liability insurance will cover the building owner. For sites such as this, adjust the insurance accordingly.

2. Damage to property

Industry Liability Insurance will deal with your workers’ accidents at the site, such as replacing windows that may break during the job. Painting spills on carpets are also a common occurrence.

3. Unplanned work stoppages

So, you are painting at a site where errors on your part could result in the daily activity at that site being halted or interrupted. In this event, there could be significant costs for the owner.

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As a consequence, you look to your insurance, which has taken events like this into account. You need to cover any action brought against you. Therefore, an inspection of the site is necessary, and a conversation with the owner or maintenance manager. This is why you must be following all safety guidelines; if you are not, your claim may be denied or severely limited. 

4. Costing of materials

The painting industry has faced substantial cost rises in materials this year. In this business, more than 50% of the costs are allocated to raw materials. This will naturally add to your insurance bottom line. 

5. Changing job specifications

Client demands will differ, resulting in different pressures on your workers and the possibility of mental health factors coming into play. Apart from site inspections, one of the non-negotiables is a talk with the maintenance officer. There are many examples of where a contractor has been fired for not meeting expectation. Loosing your foreman can make completing the job difficult or cause other issues on the job site.  These situations must be considered when choosing the right insurance plan for your business. 

Be prepared for the upturn.

The painting industry is massive, falling into the “must-have” category. If there’s a building, it will require painting. The upturn is coming, so be ready for it.

The industry may have contracted (by 16.6%) in 2020, but a massive growth spike is in the forecast. Demand will undoubtedly increase.

Are your insurance ducks in a row? See to it that all your insurance ducks are in a row! Be careful of those unforeseen events; they could easily trip you up.