What is drywaller insurance?
Drywaller insurance is a policy meant for professional drywallers or plaster contractors. As you know, your job involves more than just putting up drywall. You also install panels and plasterboard to create or fix walls depending on your clients' needs. But having so many different tasks and working with so many different materials come with a risk. Thankfully, insurance can help.
Drywaller insurance is an umbrella term for different policies that are designed to protect you and your drywalling business from the specific risks associated with your job. For instance, if you accidentally damage a client's floor because you dropped a tool while installing a panel, commercial general liability insurance would cover the repair costs for your client. Drywall insurance also typically includes tools and equipment coverage, and you also have the choice of adding additional protection, like commercial property insurance, which will protect your property, such as an office, warehouse or storage facility, from accidents.
Who needs drywaller insurance?
You will need drywaller insurance if you fall into the following categories:
- Independent drywallers: These contractors work solo, which could be either as a sole proprietor or freelancer.
- Drywaller businesses: These are companies that specialize in offering a range of drywall installation and repair services to both residential and commercial properties.
- Subcontractors: They are professionals hired by general contractors to complete specific drywall tasks on larger construction projects and will require their own insurance as they will not be considered as an employee.
What does drywaller insurance cover?
Drywaller insurance typically covers these three main areas:
- Commercial general liability insurance: Known as CGL, this coverage is mandatory in some regions, like Ontario, for every contractor. It protects you financially against lawsuits related to third-party property damage or bodily injury. For example, after you complete a project, if a section of drywall falls and causes damage or injury, CGL insurance can cover claims related to the work you have finished.
Important note: When choosing your coverage limit, you can apply it collectively to all employees or per individual. The latter usually results in higher premiums. - Professional liability insurance: Also called errors and omissions (E&O) insurance, this covers claims related to professional errors or negligence. This insurance will protect you financially if a client claims that your work was not up to standards or not what was agreed upon. In this case, E&O insurance would cover the costs associated with the claim and lawsuits.
- Tools and equipment insurance: If your tools or equipment are lost, stolen or damaged, this is the policy that will reimburse you for their repairs or replacements. Usually, the rule of thumb is tools are items that are worth less than $1,500, while anything over that amount is classified as equipment. Insurance policies might have different rules for what they call a tool and what they call equipment, so it's important to look at a policy's details to know how things are classified and covered.
What insurance add-ons are recommended for a drywaller?
Based on your business operations, consider these add-ons:
- Commercial property insurance: If you have a physical space for your business such as an office or warehouse, you should consider adding this policy as it will protect your space and its contents. For example, if your storage facility suffers water damage, which soaks and ruins your equipment or inventory, commercial property insurance would cover the repair costs of the storage facility as well as the replacement costs for your damaged goods.
- Commercial auto insurance: You will need this policy if you have a company vehicle. It covers the vehicles you use for work in case of an accident, theft or damage. If your service van happens to be in an accident while on a work call, commercial auto insurance helps cover repair costs of the vehicle and any damages to your work supplies that were damaged as a result of the accident.
- Business interruption insurance: This policy will protect your business from lost income when things go wrong, like natural disasters or fires. If a fire damages your tools and stops you from finishing a job, it helps pay for things like rent, utilities and salaries, if you have employees.
How much does drywaller insurance cost in Canada?
The cost of drywaller insurance in Canada varies based on several factors, like the size of your business, what services you offer, your claims history and the type of coverage you choose. Here are some general pricing estimates:
- General liability insurance: Usually starts at about $450 per year for $2 million in coverage.
- Comprehensive insurance packages: Can start at around $575 per year.
To get your actual rate, consider pulling a quote via a comparison site like RATESDOTCA.
What factors determine drywaller insurance rates?
The price of drywaller insurance in Canada depends on different things, including:
- Business equipment and property: The value and type of equipment you use can affect your insurance costs. More expensive or special equipment will raise the premiums as they are more expensive to replace.
- Revenue: If your business makes more money, it will increase your insurance quotes because insurers see it as more risk, since you're taking on more and bigger projects.
- Deductible: This is the amount you pay out-of-pocket before your insurance starts to help. If you choose a higher deductible, it will lower your premium since the insurer will have to pay less in case of an incident.
- Location: Where your business is located can affect costs. Busier areas with more people or those that are prone to natural disasters are often riskier to insure.
- Years in operation: Businesses that have been around longer with a good track record often get lower premiums than newer ones.
- Claims history: Making a lot of claims will increase your insurance costs over time.
How does drywaller insurance work?
Drywaller insurance protects you financially against unexpected incidents. When you make a claim, your insurer checks the situation, and if it’s covered, they pay for the expenses up to your policy’s limits. This helps you manage losses and keeps your business running smoothly.
How to get the cheapest drywaller insurance quote?
To get the cheapest drywaller insurance quote in Canada, try these steps:
- Compare multiple quotes: Use online platforms like RATESDOTCA to look at quotes from different insurers and find the best rate for you.
- Bundle policies: If you need more than one type of insurance (like general liability and commercial auto), getting them from the same provider can often give you discounts.
- Increase your deductible: Choosing a higher deductible can lower your premium. Just make sure you can afford the deductible if you need to make a claim.
- Maintain a good claims history: If you have a good claims history, insurers will usually lower your rates. You can use different safety measures to reduce the chance of accidents and claims.
- Choose the right coverage: You should only be paying for the coverage that your business needs. For example, if you don’t use vehicles for your business, you can skip commercial auto insurance.
- Ask about discounts: Some insurers will give you discounts for things like paying annually instead of monthly or having a good safety record.
