Plastering, drywall, and insulation contractors are exposed to many hazards in the course of their work, from unintentional property damage or physical injury to unexpected disasters like a fire. When you purchase business insurance to fit your needs, you can feel confident that your business will be protected from the financial consequences of a costly lawsuit or accident.

What insurance coverage do I need as a plastering, drywall, and insulation contractor?

There are many types of insurance coverage to consider, but these policies are particularly relevant to drywall, insulation, and plastering businesses:

General Liability Insurance

General liability insurance protects your business from claims of accidental third-party property damage, bodily injury, personal injury, or advertising injury. Since drywall, insulation, and plastering contractors work at a variety of homes and businesses, there’s always a chance that your work could unintentionally cause someone an injury or damage their property. If your business is sued for a third-party injury or property damage, general liability insurance can cover legal fees and damages, in addition to medical payments in the case of an injury.

General liability insurance also includes coverage for products and completed operations. If property damage or injuries are caused by your work after it has been completed, this aspect of general liability insurance will provide coverage. Drywall, insulation, and plastering contractors often install materials designed for waterproofing or fireproofing; if a problem in installation causes materials not to function properly, you could be held liable for any damage that results. It’s important to note that products and completed operations coverage does not cover damage to your product or completed work itself; it only applies if the completed work causes damage to a customer’s other property.

Examples:

• Bodily injury: One of your employees accidentally drops a drill from a scaffold, striking someone below. The person suffers a head injury. General liability insurance would cover medical expenses, as well as any legal fees if the injured person sues.
• Property damage: While removing old drywall from a client’s home, an employee of yours accidentally breaks an expensive stained glass window. General liability insurance would cover the damages. 
• Products and completed operations: A mistake in applying stucco to the exterior of a client’s home allows moisture to seep in, causing severe water damage to the home. Your general liability insurance would cover damages.  

Commercial Property Insurance

Commercial property insurance will provide funds to replace or repair your business property if it is destroyed or damaged by a covered peril. For businesses in the drywall, insulation, and plastering industry, there can be a higher risk of property damage since insulation materials may be flammable. If a disaster strikes your office or storage area, replacing or repairing damaged items can be costly and time-consuming. Commercial property insurance can help you recover from losses caused by common perils including windstorms, hail, fire, vandalism, explosion, and water damage.

Commercial property insurance covers the following:

• Buildings belonging to or leased by your company
• Contents of the building, including furniture, equipment, and tools
• Property of others while it is under your care, custody, or control

Example:

• A lightning strike causes a major fire to start in your storage warehouse. The building is damaged and equipment and inventory are destroyed. Your commercial property insurance would cover the loss.

Commercial Auto Insurance

Drywall, insulation, and plastering contractors typically rely on vehicles to transport materials, equipment, and employees to worksites. You will need to secure commercial auto insurance for any vehicles your company owns or leases. If one of your employees is driving a company vehicle and causes an accident, your commercial auto insurance will pay for any resulting third-party bodily injury, property damage, or pollution cleanup. Commercial auto insurance also covers the value of the vehicle itself if it’s damaged by a collision or another peril, like a falling object or theft.

If your employees drive their own vehicles to clients’ locations, you may need to add hired and non-owned auto insurance. This coverage will protect your company if an employee is at fault in an accident while driving a personal vehicle for work purposes.

Example:

• While driving to a worksite, one of your employees makes a right turn without noticing an approaching pedestrian entering the crosswalk. The employee hits the pedestrian, who suffers a broken jaw and fractured ribs. Commercial auto insurance would cover her medical bills. 

Workers’ Compensation Insurance

Installation of drywall, insulation, and plaster is physically demanding and can be risky for employees, with common injuries including cuts, eye and lung irritations caused by dust, falls from ladders or scaffolding, and back injuries or sprains. This is why it’s critical to obtain sufficient workers’ compensation insurance as well as encourage safe working practices. If employees suffer an occupational injury or illness, workers’ comp will provide funds for their medical expenses and a portion of lost income during recovery. Workers’ comp also provides financial benefits to surviving dependents if an employee dies in a work-related accident.

Workers’ compensation insurance laws vary from state to state, but almost every state requires employers to secure this coverage. Failing to secure adequate coverage can result in heavy fines and penalties for your business, so it’s important to check your local workers’ comp laws to confirm that your business is complying with regulations. 

Example:

• Your employee develops a back injury from lifting a piece of drywall in an awkward position. Workers’ comp would pay for medical bills and a portion of lost income while the employee recovers and is unable to work.

Inland Marine Insurance 

Inland marine insurance provides financial protection for your business property that does not remain at a fixed location and is not covered by a standard commercial property insurance policy. Since your company likely transports tools, equipment, and supplies to various locations, it’s a good idea to obtain inland marine insurance to protect this property in case it’s damaged by a covered peril. 

Installation floaters are a common type of inland marine insurance for contractors. An installation floater covers materials, supplies, and equipment while it’s in transit, waiting to be installed, and during the installation process. You can purchase coverage for a specific project or to cover all projects for a specified period of time. It’s a good idea to purchase this coverage to cover your business while building or renovation projects are in progress. 

Example:

• Overnight, a fire breaks out on a property where you had been installing insulation, destroying your materials and equipment. Inland marine insurance would reimburse you for the loss. 

Additional Coverages

• A business owner’s policy (BOP) combines general liability, property, business interruption, and extra expense coverage into a single package. For small or midsize businesses, this is a convenient insurance product that could help you obtain a wide range of coverage. Premiums for a business owner’s policy are typically cheaper than the cost of buying each coverage separately.
• Business income coverage will reimburse you for lost income and operating expenses if your business is forced to close due to a covered peril, such as fire, storm damage, or other property damage.
• Equipment breakdown insurance covers repairs or replacement for equipment that breaks down as well as lost business income while the equipment is out of commission. Since drywall, insulation, and plastering companies may depend on specialized equipment to perform their work, this is a good coverage to consider. 
• Pollution liability insurance covers third-party bodily injury, property damage, cleanup costs, and legal defense costs that result from pollutants released by your company. You may encounter asbestos in existing structures or use solvents, sealants, and other chemicals in your work; this can lead to environmental pollution claims.

Pricing and Quotes

Pricing for plastering, drywall, and insulation contractors insurance will vary based on the type of insurance coverage and the risk profile of your business. Insurers consider factors such as:

• Business size
• Industry
• Location
• Number of employees
• Claims history

Businesses with higher risks will have higher premiums than those deemed lower risk. For example, a drywall contractor with a history of frequent claims will face higher premiums. Premiums also rise as you increase the limits of insurance. Different insurance companies have different models for rating risks, so it is worth comparing pricing across different insurers.

In order to get an accurate estimate on pricing, it’s best to get a quote from a reputable insurance company. Below we’ve highlighted a few of our trusted partners who offer coverage for plastering, drywall, and insulation businesses:

Provider	General Liability	Professional Liability	Business Owner's Policy
Embroker	??	??	??
CoverageSmith	??	??	??
CoverWallet	??	??	??
Hiscox	??	??	??
Thimble	??	??	??

Final Word

Working with drywall, insulation, and plastering can bring risks, and it’s important to make sure your business is prepared for unexpected incidents. If your company is affected by an injury caused by your work, an expensive auto accident, or a fire, recovering can be difficult and costly. Purchasing business insurance can give you the financial protection you need to continue operating even after a disaster.