Exterior Painters: Insurance Essentials For Nys Homes

If you're hiring an exterior house painter in New York State, it's important to ensure they have the appropriate insurance. While New York doesn't require painters to be licensed at the state level, there may be specific requirements set by local governments. In New York City, for instance, painters need a Home Improvement Contractor License, which entails passing an exam and providing proof of insurance.

When hiring a painting contractor, it's crucial to ask for their insurance information. Request to see their insurance documentation and confirm that it covers the scheduled project dates. It's also recommended to ask to be named as an additional insured on their policy.

There are different types of insurance that painters may need, depending on the specifics of their business. Basic business liability protection, also known as general liability insurance, is often required and covers instances of bodily injury and property damage. Workers' compensation insurance is essential if the painter has employees, as it provides coverage for work-related injuries or illnesses. Commercial auto insurance is also important for painters who drive to job sites or transport equipment and supplies.

By ensuring that your exterior house painter has the necessary insurance coverage, you can protect yourself from potential financial risks and liabilities.

Workers' compensation insurance

• Legal representation for the employer by the insurance carrier
• Protection for the employer against most lawsuits for work-related injuries or illnesses
• Payment of medical services needed to treat work-related injuries or illnesses
• Temporary payments to the employee to help replace lost wages
• Payments to the employee to compensate for the permanent effects of the injury
• A death benefit for the employee's survivors in the event of a fatal injury

The New York State Insurance Fund (NYSIF) is a public insurance carrier and a separate entity from the New York State Workers' Compensation Board. NYSIF must provide insurance to any employer seeking coverage, regardless of the employer's type of business, safety record, or size. However, if an employer owes NYSIF money from a previous bill or account, coverage can be denied.

For painting businesses, workers' compensation insurance is crucial as it covers expenses related to ladder injuries, vehicle accidents, damaged customer property, and lawsuits. It also protects sole proprietors from job-related medical costs excluded from health insurance.

When considering a residential painting contractor, it is essential to verify that they have appropriate insurance, including workers' compensation. This is because workers' compensation is required in most states to cover the contractor's W2 employees in case of injury on the job. While it is a legal requirement, some contractors who subcontract their crew may not have workers' compensation insurance, putting customers at financial risk if an accident occurs.

As an example, if a contractor doesn't have workers' compensation insurance and one of their crew members is injured, the homeowner may be responsible for medical bills and any loss of wages. Therefore, it is essential to ask for proof of insurance and ensure that workers' compensation is included in the coverage.

General liability insurance

This type of insurance is often required by clients before they will contract your services. It can also be necessary to obtain a commercial lease or sign a client contract. The cost of general liability insurance for painters is, on average, $59 per month, or $704 per year. However, the cost can vary depending on factors such as the coverage limits, the size of your business, the amount of foot traffic, and whether you have subcontractors.

In addition to general liability insurance, there are several other types of insurance that painters may want to consider, including:

• Workers' compensation insurance: This covers medical costs and lost wages for employees who are injured or become ill due to work-related activities.
• Commercial auto insurance: This is required in most states for vehicles owned by a painting company. It provides protection in the event of an accident involving a company vehicle, covering property damage, medical bills, and legal costs.
• Professional liability insurance: This covers legal fees related to accusations of professional negligence, such as using the wrong type of paint.
• Commercial umbrella insurance: This provides additional protection if your covered liability losses exceed your policy limits.
• Contractor's tools and equipment insurance: This covers lost, stolen, or damaged tools and equipment.
• Business owner's policy: This bundles general liability insurance with commercial property insurance, offering protection against common lawsuits and damage to business property.

It is important to note that insurance requirements may vary depending on the state and local regulations, so it is always a good idea to consult with a local insurance agent to ensure you have the appropriate coverage for your business.

Commercial auto insurance

In addition to commercial auto insurance, there are several other types of insurance that exterior house painters in New York State should consider. These include general liability insurance, which covers a wide range of accidents and basic risks, and workers' compensation insurance, which is required in most states and provides coverage for employees who are injured or become ill on the job. Painters may also want to consider professional liability insurance, which can help cover costs in the event of a business disagreement or if the painter is accused of making a mistake that causes financial loss for the client.

To obtain a contractor's license in New York State, painters may also need to provide proof of insurance. While there is no state-level painter's license requirement, there may be local license rules, so painters should check with their local governments before taking on jobs. Overall, it is important for exterior house painters in New York State to have the appropriate insurance coverage to protect themselves and their business from financial risk.

Professional liability insurance

Additionally, painters can be sued for slip-and-fall accidents or even for making comments about clients after work hours. Professional liability insurance can cover the costs of these claims, protecting the business's assets and reputation.

This type of insurance is often required by residential and commercial clients, who want the assurance that they will be financially protected in the event of any mishaps. By having professional liability insurance, painters can also take on more projects and grow their business with greater confidence.

To obtain professional liability insurance, painters can contact specialised insurance providers who can tailor coverage to the specific risks faced by their small business. It is worth noting that insurance costs can vary depending on factors such as the types of projects, location, and safety measures in place.

Business Owners Policy (BOP)

A Business Owners Policy (BOP) is a great option for small business insurance in New York as it combines general liability insurance and commercial property insurance into a single policy. This is more cost-effective than purchasing each type of insurance separately.

BOPs are designed for small and medium-sized businesses (SMBs) with fewer than 100 employees and less than $5 million in revenue. They typically include property and liability insurance, with the option to add other coverages as needed. For example, if your business requires you to travel off-site, you will need an Inland Marine provision in your BOP to cover any equipment or inventory you bring with you.

A BOP will usually insure lost or damaged property for the replacement cost, rather than the actual cash value, which would subtract the property's depreciation from its replacement cost. It also includes an Inflation Guard endorsement, which automatically increases the coverage limits of your building and business personal property according to the annual rate of inflation in your geographic area.

In addition to property and liability insurance, a BOP can also include:

• Business Income and Extra Expense insurance: covers the actual loss of income and necessary expenses if your business operations are suspended due to property damage or destruction.
• Extended Business Income coverage: helps you get back up and running within a reasonable time frame after business interruption, as it can take time to regain customers and acquire new ones.
• Employee Dishonesty insurance: covers theft of money, securities, or property by employees.

Frequently asked questions