Step by step guides for starting a Painting Contractor business has one thing in common. They list insurance as a ‘must-have’ on the business startup checklist. Is insurance essential in Texas? If so, what is the cost implication on the overall startup costs?
The reasons why Painting Contractor Insurance is necessary
The nature of your work suggests that your business carries certain risks. You have employees under your care and entrusted with the property of clients. Also, you have invested in your business, which you must safeguard.
A report on employee safety published by the National Library of Medicine states work-related deaths are 3 to 5 times higher in construction painting than in the general industry.
Also, the Occupational Safety and Health Administration (OSHA) has this to report. One-tenth of construction workers are injured every year.
What insurance does a Painting Contractor need In Texas?
Commercial General Liability Insurance
This is an essential cover to have, as accidents can occur due to your business activity.
A visitor may be injured at your job site, or there is damage to a client’s property. The insurance protects you from financial costs. It will cover legal defense and medical expenses.
Workers Compensation insurance
Unlike other states, Workers Compensation insurance is optional in Texas. Failure to procure it can leave you liable to personal injury lawsuits. This insurance offers care for workers. It eliminates the worry about finances that comes with an injury at the job site.
The coverage takes care of medical costs and offers wage replacement. When you obtain this cover, it boosts the morale of your employees. They are reassured that you care about their welfare.
Commercial Property Insurance
Your investment in the business may include physical assets. These would consist of business property, office furniture, and tools of your trade. If you suffer property damage or loss, Commercial Property Insurance will step in. It will cover the costs and help your business recover.
What does it all cost?
Insurance companies tailor coverage to suit individual requirements. Every business has a unique set of risks and needs.
Factors taken into consideration when calculating costs
- The size of your labor force
- When you launched your business
- The value of your property
- Your location
- Your business claims history
- Your gross annual sales
- The square footage of your property
Estimated Insurance Costs in Texas
Commercial General Liability – This ranges from $300 – $5,000 per year.
Workers Compensation insurance – The estimated cost is 75 cents per $100 of payroll. A small business owner can expect to pay between $2,000 and $3,000 per year.
Commercial Property Insurance – The annual costs range from $755-$1,000.
Don’t leave your insurance to chance
Money spent on painting contractor insurance is money well spent. This is because, without the right coverage, the cost of potential litigation will most likely be much higher. It could easily result in significant losses and financial ruin for your business.
Talk to an insurance industry expert today and get professional advice that’s right on the money for your painting contractor business.