The Top Business Insurance Policies for Framing Contractors (NAICS 238130)

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Learn about the key insurance policies framing contractors need to protect their business and employees, such as general liability, workers' comp, commercial auto and more.

Key Takeaways

  • General liability insurance protects against costly lawsuits from injuries on work sites or defective work.
  • Workers’ compensation covers medical costs and lost wages if employees are hurt on the job.
  • Commercial auto insures company vehicles and protects against accidents.
  • Commercial property insures buildings, tools and equipment against disasters.
  • Commercial umbrella provides additional liability coverage above primary limits.
  • Commercial crime protects against theft, employee dishonesty and cyber risks.
  • Inland marine covers valuable movable property used in operations.
  • Professional liability protects against lawsuits over defective or negligent work.
  • Cyber liability covers data breaches, ransomware attacks and system failures.

Introduction

As a framing contractor, there are a variety of insurance policies critical to protecting your business, employees and clients. Whether covering risks of injuries on work sites, vehicle accidents or errors in workmanship, the right insurance portfolio is essential to avoid financial ruin from unforeseen incidents.

General Liability Insurance

General liability insurance provides important protections for framing contractors. It covers costs associated with accidents on work sites, injuries to workers or customers, and property damage claims that could threaten the financial stability of the business.

Some key benefits of general liability insurance for framing contractors include protecting the business from costly third party lawsuits, covering legal fees and potential settlements if sued, providing coverage for accidental property damage from work, and meeting requirements to work with other companies as a subcontractor. Having this insurance also helps demonstrate to customers that the business takes risk seriously and is properly established.

Category List
Benefits
  • Protects your business from third party lawsuits if a customer/member of the public is injured on your worksite or by your work
  • Covers legal fees and potential settlements if you are sued by a third party
  • Protects your business assets like equipment and property in the event of a lawsuit
  • Required by many contracts to work with other companies as a subcontractor
  • Covers accidental property damage if your work damages a customer’s existing property
  • Provides non-owned and hired auto liability coverage if you or your employees use a personal vehicle for work
  • Recommended and sometimes required to get jobs through larger construction companies
  • Demonstrates to customers that your business is properly established and takes risk seriously
Use Cases
  • Covers bodily injury and property damage claims from accidents on work sites
  • Protects the contractor from lawsuits if a worker is injured on the job
  • Provides coverage if a customer slips and falls on a work site
  • Covers legal costs if the contractor is sued for faulty workmanship

Based on industry data, the average annual cost for general liability insurance for framing contractors is around $2,500. This price is derived from considering average revenue, number of employees, claims history, and risk level of the business operations for this industry. For a mid-sized framing contractor with 10 employees and $1 million in annual revenue, their general liability insurance would be priced around this average.

Estimated Pricing: $2,500

Workers’ Compensation Insurance

Workers’ compensation insurance provides essential protection for framing contractors and their employees. It covers medical expenses and lost wages for injured workers, protects the business from lawsuits, and can help lower insurance costs over time with a strong safety program.
Having workers’ compensation coverage is especially important for framing contractors due to the inherent risks in construction work. Many job sites have hazards like working at heights, heavy lifting, equipment use, and other factors that could lead to injuries for employees. Insurance ensures employees receive medical care and wage replacement if hurt, while also shielding the contractor from large costs associated with on-the-job accidents. Coverage is also legally required in most states.

Category List
Benefits
  • Covers medical expenses and lost wages for injured employees
  • Protects your business from lawsuits if an employee is injured on the job
  • Required by law in most states
  • Reduces costs of liability insurance since it replaces negligence lawsuits
  • Provides return-to-work programs and vocational rehabilitation to help employees recover and return to suitable work
  • Premiums may be reduced when your company maintains a good safety record
Use Cases
  • Cover medical expenses if an employee gets injured on the job
  • Cover lost wages if an employee cannot work due to a job-related injury or illness
  • Protect the business from lawsuits if an employee sues due to a job injury
  • Cover rehabilitation costs such as physical therapy if needed for an injury recovery
  • Pay death benefits to families if a fatal job injury occurs

Based on typical workers’ compensation insurance rates for framing contractors (NAICS 238130), the average estimated annual premium is around $2.50 to $4.00 per $100 of payroll. This rate is derived from considering factors like payroll amount, claims history, employee job duties and classifications. For a framing contractor with an annual payroll of $500,000, the estimated annual premium would be between $12,500 to $20,000.

Estimated Pricing: $12,500 to $20,000

Commercial Auto Insurance

Commercial auto insurance provides important protections for framing contractors who use vehicles in their businesses. It covers liability, physical damage, medical payments and other essential risks associated with operating commercial vehicles.

Additional intro paragraphs could summarize some of the key benefits, use cases or pricing information provided in the references. For example:

Commercial auto insurance offers framing contractors essential liability protection if an accident occurs, as well as coverage to repair or replace damaged vehicles. It can help cover medical bills, lost wages or lawsuits arising from vehicle-related incidents. Estimated annual premiums for commercial auto policies range from $2000-3000 on average for framing contractors depending on vehicle fleet size, miles driven and claims history.

Category List
Benefits
  • Liability coverage to protect from lawsuits if an accident occurs
  • Physical damage coverage to repair or replace vehicles if damaged
  • Medical payments coverage to pay for injuries to others
  • Uninsured/underinsured motorist coverage to protect from drivers without insurance
  • Additional insured endorsements to protect contractors and clients
  • Coverage for transportation of materials and tools to job sites
  • Hired and non-owned auto liability to protect contractors when using other vehicles
  • Deductible options to customize costs
Use Cases
  • Cover liability if a company vehicle causes an accident
  • Cover medical bills and lost wages if an employee is injured in a vehicle related accident while working
  • Repair or replace a company vehicle if it is damaged in an accident

Based on average commercial auto insurance rates, the estimated average annual pricing for framing contractors in NAICS 238130 industry would be around $2000-$3000. This pricing is derived based on typical vehicle fleet size of 2-5 trucks for framing contractors, average miles driven of 15,000-25,000 miles annually per vehicle, and average claims experience for this type of business and industry. Location and drivers’ records would also impact the final rates.

Estimated Pricing: $2000-$3000

Commercial Property Insurance

‘Commercial property insurance is an important protection for framing contractors to mitigate risks to their business assets and operations. It can cover expenses from unexpected property damage, theft or other losses that could disrupt business activities. The top benefits of commercial property insurance for framing contractors include protecting buildings, equipment, inventory, covering liability if a worker gets injured, paying expenses if the business must close due to a covered loss, and replacing lost income if the business has to shut down to repair damage.’

Category List
Benefits
  • Protects assets like buildings, equipment, inventory from disasters like fires or floods
  • Covers liability if a worker gets injured on the job
  • Pays for expenses if you have to close or relocate your business temporarily due to a covered loss
  • Replaces lost income if your business has to shut down to repair damage
  • Provides coverage for equipment while working on jobsites
  • Peace of mind knowing your business is protected from unexpected losses
Use Cases
  • Protect equipment and tools from theft or damage
  • Cover building and property if damaged by fire, wind or other disasters
  • Provide reimbursement if building is unusable due to damage
  • Cover inventory, supplies and materials stored on site
  • Replace vehicles or heavy machinery if in an accident

Based on industry data and risk factors, the estimated average annual pricing for commercial property insurance for framing contractor businesses (NAICS 238130) is $2,500-$5,000. This pricing range takes into account factors like the types of equipment/machinery used, types of structures worked in, average business revenue, liability risks, past claims experience, and required insurance policy limits/coverage.

Estimated Pricing: $2,500-$5,000

Commercial Umbrella Insurance

Commercial umbrella insurance provides an additional layer of liability protection above a business’s regular insurance policies. It is especially useful for framing contractors due to the risks involved with their construction work. Some key benefits of commercial umbrella insurance for framing contractors include higher liability limits to protect assets, coverage for risks not covered by primary policies like pollution or cyber liability, and protection from large liability claims and lawsuits that exceed primary insurance limits. Commercial umbrella insurance can help framing contractors mitigate risks from their job site work and potential liability issues.

Category List
Benefits
  • Provides additional liability coverage above your primary insurance limits
  • Protects assets like home and personal vehicles from large liability claims
  • Covers gaps in your primary insurance like some types of liability not covered
  • Can provide coverage for punitive damages which regular policies may exclude
  • Offers protection for claims stemming from work done by your subcontractors
  • Increases your total insurance limit so you have adequate coverage for major claims
Use Cases
  • Protection from liability lawsuits above primary insurance limits
  • Potential coverage for some liabilities not covered by primary insurance policies
  • Higher liability limits than primary insurance policies to protect assets
  • Covers defense costs above primary limits if sued
  • Covers job site risks like falls, injuries to workers or the public

Based on typical rates for framing contractors, the average pricing for a $1 million commercial umbrella insurance policy would be approximately $1500-$2500 annually. Rates are usually based on factors like payroll, number of employees, loss history. For framing contractors classified under NAICS 238130, an estimated annual payroll of $500,000-1,000,000 was used to derive this price range.

Estimated Pricing: $1500-$2500

Commercial Crime Insurance

Commercial crime insurance provides important protection for framing contractors against risks of theft, fraud and other dishonest acts that could threaten their business operations and finances. It reimburses contractors for losses and helps them strengthen financial controls to avoid future crimes. Some key benefits include covering employee theft, third party liability, investigative costs, tool/equipment theft and more. Common risks contractors face involve employee embezzlement, job site theft, and cybercrime. Estimated annual premium is around $750 based on average revenue and employee size.

Category List
Benefits
  • Covers employee dishonesty like theft, forgery and embezzlement
  • Protects against third party liability like errors and omissions
  • Reimburses for costs associated with investigating a loss like forensic accounting fees
  • Covers damage or loss of tools, equipment and materials at job sites or in storage
  • Protects against funds paid by customers or clients that go missing
  • Provides access to risk management resources to help prevent losses
Use Cases
  • Employee theft or embezzlement
  • Third party theft/burglary of company property
  • Loss due to computer fraud or cybercrime
  • Loss of money or securities due to forgery and counterfeiting
  • Loss of customer information due to data breaches
  • Theft of building materials and equipment from job sites

Based on typical commercial crime insurance pricing models, the estimated average annual price for a framing contractor business with NAICS Code 238130 would be around $750. This was calculated based on average revenue size of $500,000 and 10 employees. Larger contractors may see higher pricing while smaller contractors may see lower pricing. Location and loss history also impact pricing.

Estimated Pricing: $750

Commercial Inland Marine Insurance

Commercial inland marine insurance is an important type of insurance coverage for framing contractors. It protects their valuable tools, equipment, materials and vehicles essential for daily operations from risks like theft, damage and loss.

Category List
Benefits
  • Protects equipment, materials, and tools used in daily operations
  • Covers equipment and materials during transit for jobsites
  • Provides flexibility to customize coverage for various equipment and property
  • Covers liability if insured property causes damage to others
  • Reimburses for theft or damage to equipment on and off job sites
  • Coverage extends to temporary storage locations in addition to job sites
Use Cases
  • Covering tools and equipment used at worksites
  • Covering materials stored at worksites or in warehouses/storage units
  • Covering vehicles used to transport tools, equipment and materials
  • Protecting uninstalled building materials and supplies from risks like fire, theft and damage

Based on average values, the estimated pricing for commercial inland marine insurance for framing contractors with NAICS code 238130 would be around $1.50 per $100 of insured equipment and tools. This price was calculated based on the typical equipment and tools used in this industry such as power tools, scaffolding, ladders as well as the relatively high risk of damage or theft of these items at construction sites. Most inland marine policies for this industry have a deductible of $1,000.

Estimated Pricing: $1.50/100 insured value

Professional Liability Insurance

As a small-to-medium sized framing contractor, professional liability insurance provides important financial protection for your business. It can help cover the costs of defending yourself against lawsuits and paying damages if a client claims your work was negligent or defective. Some key benefits of professional liability insurance for framing contractors include protecting against lawsuits if a project goes wrong due to accidents or faulty work, covering the costs of repairs if improper framing causes structural issues, and demonstrating to clients that you stand behind your work. Estimated average annual premiums are $2,000-$4,000 depending on factors like annual revenue, claims history and risk management practices.

Category List
Benefits
  • Protects against lawsuits from clients if a project goes wrong
  • Covers costs of defending yourself against legal claims
  • Pays damages and legal fees if a client wins a lawsuit against you
  • Protects your business assets if you are found legally liable
  • Provides access to experienced lawyers to handle claims
  • Reduces stress of worrying about being held personally liable
  • Demonstrates to clients that you take professional responsibility seriously
Use Cases
  • Protect against lawsuits from customers if a project is not completed properly or on time
  • Cover costs if a customer claims faulty workmanship in a project
  • Cover costs if a customer is accidentally injured on a job site due to negligence
  • Cover costs of repairs or re-work if improper framing results in structural issues with a building
  • Protect the contractor’s business assets like tools and equipment if they are sued for negligence

Based on industry research and analysis of typical risks and claims in the framing contractors industry, the estimated average annual premium for professional liability insurance would be around $2,000-$4,000. Premiums are usually calculated based on factors like annual revenue, number of employees, types of projects undertaken, claims history, and risk management practices. For a typical small-to-medium sized framing contractor with $2-5M in annual revenue, 5-10 employees, and a good claims history, an estimated price would be $3,000 per year.

Estimated Pricing: $3,000

Cyber Liability Insurance

As a framing contractor dealing with sensitive client information, cyber liability insurance is an important protection against the financial risks of cyber incidents and privacy breaches. It can help cover costs of responding to events like data breaches, ransomware attacks, as well as liability if customers sue over damaged caused. Coverage also includes loss of income if a cyber attack disables business systems. Policies may provide risk management services to help prevent incidents.

Category List
Benefits
  • Protection against costs of a data breach including legal services, notification expenses, and credit monitoring
  • Coverage for data recovery and restoration in the event of cyber attack or data loss
  • Liability protection in the event a customer or third party attempts to hold the company responsible for damages due to a cyber incident like a data breach
  • Reimbursement for cyber extortion or ransomware demands to recover access to systems or data
  • Coverage for loss of business income or extra expenses if systems are offline due to a cyber attack like ransomware
  • Access to risk management and loss prevention services like IT security assessment or training
  • Insurance expertise and negotiated legal fees in responding to a cyber incident
  • Coverage for reputational harm costs like a public relations campaign to mitigate negative customer impact from a cyber incident
Use Cases
  • Ransomware attacks and system downtime
  • Data breaches involving customer, employee or business partner information
  • Network security failures that expose private data
  • Cyber extortion and cyber terrorism threats targeting infrastructure
  • Costs associated with forensic investigations and notification of impacted individuals following a breach
  • Lawsuits by customers whose private information was compromised in a data breach
  • Regulatory fines and penalties from state and federal agencies for privacy violations

Based on research, the average annual premium for cyber liability insurance for framing contractors is estimated to be around $1,500. This pricing is derived from looking at average premiums for contractors of similar sizes and risk profiles. Factors like annual revenue, number of employees, security practices, and claims history affect the final pricing. For an average framing contractor with 10-20 employees and $2-5M in annual revenue, $1,500 would be a reasonable estimate.

Estimated Pricing: $1,500

Conclusion

By understanding the key business insurance policies tailored for framing contractors like general liability, workers’ comp, commercial auto and more, you can make informed decisions to fully safeguard your company’s future. Don’t leave your livelihood at risk – ensure you have the proper protection in place.

Frequently Asked Questions

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