How much does insurance cost for flooring installers?

Flooring installation businesses spend an average of $63 per month, or $759 per year, for general liability insurance.

Though usually not required by law, a general liability policy may be needed in order to sign a lease, get licensed in your state, or work with some clients.

General liability coverage protects your small business from common third-party risks, such as customer property damage or bodily injury. It also covers copyright infringement, defamation, and other advertising injuries.

Most policies include product liability insurance, also called products-completed operations insurance, which covers harm caused by a defective product or a completed service. For example, if a sharp piece of cracked tile injures a customer, this policy would pay for their medical bills and any legal defense costs.

Below is the average general liability policy for flooring contractors who buy from TechInsurance:

Premium: $63 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

General liability insurance costs are based on several factors, including the type of floors you offer (carpet, wood, tile, laminate, etc.), policy limits, size and location of your business, and any subcontractors or additional insured endorsements you may have.

On average, flooring businesses pay $109 per month, or $1,304 per year, for a business owner's policy (BOP).

A BOP combines your general liability and commercial property insurance coverage together at a discount. It protects your small business against both property and liability risks, such as stolen business property, a fire at your office, or an accident that harms a client.

This is the average business owner's policy for flooring contractors who buy from TechInsurance:

Premium: $109 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

Many insurance companies include business interruption insurance, also called business income insurance, in their business owner's policies, or you can add it as an endorsement. This policy pays for lost profits and day-to-day operating expenses if a fire, storm, or other incident forces your business to close temporarily.

Flooring companies that qualify for a BOP usually are small in size (less than 100 employees) and low-risk. Learn more about business owner's policy eligibility.

The cost of a business owner's policy mostly depends on the value of your business property. Other factors include the size of your business, your location, the policy limits you choose, and your business revenue.

Flooring contractors spend an average of $193 per month, or $2,313 annually, for workers' compensation insurance. To comply with state laws and avoid penalties, businesses with one or more employees typically must buy this type of coverage.

Workers' comp coverage pays for medical costs and disability benefits when you or an employee suffers a work-related injury or illness. For example, if a contractor injures their hand on a table saw while cutting a length of flooring, a workers' comp policy would pay for their emergency room visit, medications, and physical therapy.

Workers' compensation coverage usually includes employer's liability insurance, which pays for legal costs related to workplace injuries.

Some states require sole proprietors and independent contractors in the construction industry to obtain workers' comp even if they work alone. It's highly recommended in either case, since most health insurance plans can deny claims for injuries that occur on the job.

The cost of workers' comp is based on several factors, primarily the number of employees you have and their occupational risks.

Flooring contractors spend an average of $185 per month, or $2,224 per year, for commercial auto insurance. Almost every state requires this type of insurance for businesses that own a vehicle.

If your company vehicle is involved in an accident, a commercial auto policy would help pay for any damages, including medical expenses, property repairs, and legal fees. You can also buy comprehensive coverage to gain protection against theft, vandalism, and storm damage.

To protect personal, rented, and leased vehicles used for business purposes, you'd need hired and non-owned auto insurance (HNOA) instead.

The cost of commercial auto insurance depends on many factors, including your employees' driving records, your policy limits, the number of vehicles you own, and the coverage options you choose.

Flooring installers pay an average of $14 per month, or $169 yearly, for contractor’s tools and equipment insurance.

This policy covers tools and equipment that are stolen, damaged, or destroyed, such as tape measures, flooring nailers, and saws. However, it doesn't pay for normal wear and tear. It's designed to protect gear that is on-the-go, covering items that are less than five years old and valued at under $10,000.

Tools and equipment insurance is a type of inland marine insurance, which covers business property that's in transit, stored off-site, or used at jobsites.

The cost of tools and equipment coverage depends mostly on the value of your tools and equipment. Another important factor is whether you choose to insure them for their actual cash value (the value of the used item) or their replacement cost (the cost of a brand-new replacement).

On average, construction businesses and contractors pay $65 per month, or $785 per year, for professional liability insurance.

Also called errors and omissions insurance (E&O), professional liability insurance covers financial losses related to mistakes, missed deadlines, and other instances of professional negligence. This includes attorney's fees and other legal expenses if a client decides to sue over unsatisfactory work.

For example, if a contractor installs the wrong type of hardwood flooring in a home, this policy would pay for legal defense costs if the homeowner sues.

This is the average professional liability policy for contractors who purchase from TechInsurance:

Premium: $65 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $1,250

The cost of professional liability insurance is determined by several factors, including the coverage limits and deductible you choose, the size of your business, the type of flooring work you do, and your claims history.

Small flooring businesses and contractors pay an average of $65 per month, or $783 yearly, for commercial umbrella insurance.

This policy helps boost the coverage of your underlying contractor's liability insurance, such as general liability, commercial auto, or employer's liability insurance. When the underlying policy reaches its limit on an insurance claim, your umbrella policy activates to help provide any additional coverage that is needed.

Umbrella insurance is typically available in $1 million increments. You need to have another liability policy before you can buy this coverage.

The cost of commercial umbrella insurance depends mostly on the amount of coverage you buy. The same factors that affect the cost of the underlying policies can also influence your premium.

Small construction businesses pay an average of $102 per month, or $1,220 annually, for builder's risk insurance.

This policy is also called course of construction insurance. It helps pay for damaged materials at a construction site, such as boards and tiles, as well as damage to a structure in progress. This could be due to fire, vandalism, or non-severe weather.

The cost of builder's risk insurance depends on the total completed value of the structure, and other construction project factors like materials and labor.

The average cost of a surety bond for construction businesses, including flooring installers, is $8 per month, or $100 annually.

Surety bonds protect your clients by reimbursing them in the event that your business is unable to fulfill the terms of a contract or agreement. For this reason, you may be required to obtain a surety bond in order to sign a client contract.

Some states require flooring contractors to have a surety bond as part of their legal requirements for a contractor's license. The bond guarantees that your work will comply with building codes and other regulations.

As with a fidelity bond, the cost of a surety bond is a small percentage of the total bond amount. Unlike insurance, you'll need to repay the company that issued the bond in the event of a claim.