Key Takeaways
- General liability insurance protects against lawsuits from injuries on the job or damaged customer property.
- Workers’ compensation insurance covers medical bills and lost wages if employees get hurt on the job.
- Commercial auto insurance protects company vehicles used for business.
- Professional liability insurance protects against lawsuits over faulty work or defective installations.
- Property insurance covers equipment, tools and materials from disasters like fires or floods.
- Directors and officers insurance protects business owners personally if they are sued over business decisions.
Introduction
As a tile and terrazzo contractor, there are several crucial types of business insurance needed to properly protect the company’s operations and finances. Maintaining the right insurance policies ensures the business can focus on projects without undue concern over liability risks.
General Liability Insurance
General liability insurance offers important coverage to protect tile and terrazzo contractors from financial losses due to accidents or incidents on job sites that may result in injuries or property damage. It is commonly required for this industry due to the risks involved in the work. It provides coverage for common risks like slip/fall accidents, property damage during installations, and liability from chemical exposures. The top benefits include protecting the business and personal assets from lawsuits, reimbursing legal fees if sued, and demonstrating responsibility to clients. The average annual premium is around $2,500 based on industry data.
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Based on industry data, the average annual premium for general liability insurance for tile and terrazzo contractors is around $2,500. This estimate is derived from comparing insurance rates for contractors in this industry from several top carriers, taking into account factors like annual revenue, number of employees, types of projects undertaken, safety record and claims history.
Estimated Pricing: $2,500
Workers’ Compensation Insurance
Workers’ compensation insurance is an important coverage for tile and terrazzo contractors due to the physical risks involved in their industry. It provides financial protection for both employees and employers in the event of workplace injuries by covering medical expenses and lost wages, as well as protecting businesses from costly liability lawsuits. Having workers’ comp coverage also helps attract quality candidates and support employee retention by demonstrating a commitment to their safety and well-being. The estimated pricing information provided can help contractors understand what to budget for this necessary insurance.
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Based on national workers’ compensation insurance rates and risk factors for the Tile and Terrazzo Contractors industry, the estimated average annual pricing would be between $2.50 – $3.00 per $100 of payroll. The rates are derived from the industry’s risk factors which include working with heavy equipment, risk of falls from heights, exposure to hazardous chemicals/materials. Larger and more experienced contractors with strong safety programs would see rates closer to the lower end of the range while smaller contractors or those with past claims/injuries would pay rates closer to the higher end.
Estimated Pricing: $2.50 – $3.00 per $100 of payroll
Commercial Auto Insurance
Commercial auto insurance is an essential form of coverage for tile and terrazzo contractors to protect their business vehicles and operations from financial losses. It ensures the business is protected from financial risks and lawsuits in the event of an accident involving a company or non-owned vehicle used for business purposes. Commercial auto insurance provides valuable liability and physical damage protection for contractors who rely on vans and trucks to transport crews, tools, materials and products to various job sites.
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Based on industry data and typical vehicle usage, the estimated average annual price for commercial auto insurance for a tile and terrazzo contractor business is around $2,000. This was calculated based on having 3-5 vehicles (typically trucks, vans, or other work vehicles) and an average of 15,000 miles driven per year. Coverage would include liability, collision, comprehensive, and other standard coverages. Pricing can vary depending on location, vehicle types, driver records, and other individual business factors.
Estimated Pricing: $2,000
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, provides important protections for tile and terrazzo contractors. It helps protect them against lawsuits arising from losses due to faulty workmanship, defective materials or accidental injuries on job sites. Maintaining proper coverage helps strengthen contractors’ reputation and ensures financial survival even when mistakes are made. Key benefits include protection from lawsuits, coverage for subcontractors’ liabilities, compliance with licensing requirements, and demonstrating financial responsibility to clients. Common claims that can be covered include defective installations, injuries caused by slipping hazards, failure to properly complete projects, and costs associated with rework due to incorrect site measurements or assessments. Estimated annual pricing is around $2,500 based on typical industry factors like revenue size and risk levels.
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Based on industry data and averages, the estimated annual pricing for professional liability insurance for tile and terrazzo contractors with NAICS code 238340 is around $2,500. This pricing is derived from considering the industry risk level, average revenue size of contractors in this industry, and typical coverage amounts for projects.
Estimated Pricing: $2,500
Property Insurance
This reference is a helpful resource for tile and terrazzo contractors to understand how property insurance can protect their business assets and operations. It breaks down the key aspects of property insurance like what it covers, potential payouts, and estimated costs. Understanding these details can help contractors decide if property insurance makes sense for their individual business needs and budget. It outlines the top benefits like protection from various disasters, liability coverage, and reimbursement for lost income. It also gives examples of common use cases such as fire damage, water damage, and liability from subcontractors. Finally, it estimates the typical annual premium would be around $1,000 based on average revenue and insured property value percentages.
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Based on industry standards and average values, property insurance for tile and terrazzo contractors typically falls between $2-4 per $100 of insured value. Considering the average revenue for NAICS 238340 businesses is around $600,000, with property and equipment making up around 15% of business value, the estimated annual property insurance premium would be around $1,000.
Estimated Pricing: $1,000
Umbrella Insurance
Umbrella insurance provides valuable extra liability protection for tile and terrazzo contractors. It offers higher coverage limits above standard business policies to help protect against costly litigation and claims from accidents or injuries on job sites. Some key benefits of umbrella insurance for this industry include additional protection from liability lawsuits, coverage for risks not included in other policies, and lower overall premium costs compared to increasing individual policy limits.
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Based on typical factors such as annual revenues, number of employees, past claims experience for the industry, and risk exposure, the average estimated pricing for umbrella insurance for tile and terrazzo contractors with NAICS code 238340 would be around $2,000 – $3,000 annually. Umbrella insurance pricing is usually based on the underlying commercial general liability limits that a business already carries. Businesses in this industry typically have $1M in underlying coverage, so umbrella policies would provide additional liability protection above that amount, usually in $1M increments up to $5M or more. Higher revenue/larger contracting businesses may pay near the top of this range or above depending on additional risk factors.
Estimated Pricing: $2,000 – $3,000
Directar’S And Officers Insurance
Directors and officers liability insurance (D&O insurance) provides critical protection for businesses and their leadership from potential lawsuits. It covers legal fees and settlements if a director or officer is held personally liable for their decisions or actions related to running the business. This allows leadership to focus on operating the business without undue concern over personal liability risk. D&O insurance can also help defend against shareholder litigation, derivative lawsuits, and claims related to discrimination, harassment, wrongful termination, and issues that may arise from construction projects. The estimated annual cost for D&O insurance for tile and terrazzo contractors is $3,000-$5,000.
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Based on industry data and average claims, the estimated pricing for D&O insurance for businesses in the tile and terrazzo contractors industry with NAICS code 238340 would be around $3,000-$5,000 per year. This pricing takes into account factors like annual revenue, number of employees, claims history, and risk level of the specific business operations.
Estimated Pricing: $3,000-$5,000
Conclusion
Understanding the key types of coverage required for this industry helps tile and terrazzo contractors make well-informed decisions about their insurance needs. With the right protections in place, contractors can strengthen their reputation for responsibility while keeping their business financially secure even when accidents or errors occur.