There are a plethora of business opportunities in the painting industry. As of 2024, there were 178,477 house painting companies in the U.S., an increase of 1.2% from 2022.
Whether you’re considering opening a painting company or you’ve operated one for a while, it’s important to evaluate the types of insurance policies you need to protect your organization best.
In this article, Thomas McMillan, commercial lines staff underwriter at Central Insurance, shares his expertise on the most important policies every painting company owner should have to decrease exposure to claims or risk hazards. By understanding your specific risks, selecting appropriate coverage types, evaluating costs, and partnering with a reputable insurance provider, you can mitigate financial uncertainties and confidently focus on growing your business.
Policy #1 – General Liability Insurance for Painters
Painting contractors have both operational and completed operations general liability exposures in their work.
“The premises/operations exposure would be primarily focused on job sites, including causing bodily injury to another contractor who may be on site,” McMillan says. “Many contractors utilize scaffolding and ladders, and those can fall, and sometimes people are underneath them when they fall.”
To further demonstrate the importance of this coverage, McMillan offers a personal example of a premises exposure:
“I’m having the exterior of my house painted currently and the guys are doing a great job but they’re onsite working on ladders as the neighborhood kids are outside playing. I was definitely raising my eyebrows as the kids were running around my backyard with the ladders present.”
Central goes above and beyond to help protect painting company owners from what can arise in the course of business operations with a General Liability Plus endorsement providing some automatic policy coverage enhancements. “Our General Liability Plus endorsement includes a $1 million limit for Employee Benefits Liability,” McMillan explains. “This provides coverage for the insured if they fail to administer employee benefits such as life, health, dental, etc. Also, our GL Plus form provides blanket additional insured coverages, which are very critical and most likely required for a painting contractor when working with general contractors on projects.”
Policy #2 – Workers’ Compensation Coverage
Painting company owners have significant workers’ compensation exposure due to the chemical nature of the paint and solvents. Worker’s Compensation insurance helps to protect you and your employees from the hazards of fumes that can lead to burns, respiratory issues, or a medical condition as a result of that exposure.
“In addition, painting contractors will have a significant fall from heights exposure, which will be their dominant exposure,” McMillan offers. “Any fall from above eight feet in height can cause significant bodily injury, including death, and those employees need to be protected. Your independent local agent can help guide you through the workers’ compensation requirements for your state.”
Policy #3 – Pollution Liability Coverage
Central offers Pollution Liability coverage for painting contractors or business owners who have the potential to generate hazardous waste exposure. It’s essential coverage in case you disturb existing pollutants onsite while performing painting operations.
McMillan notes that if you store a lot of chemicals on your owned, occupied, or leased site, any seepage into the ground or groundwater can cause a pollution condition that would need to be remediated and Central’’’s Pollution Liability coverage could respond to those claims.
Policy #4 – Auto Liability and Physical Damage Coverage
Painting contractors are on the road quite a bit throughout the day, going to and from job sites, transporting equipment and supplies from hardware and paint stores, as well as transporting employees. Due to the mobile nature of the business, auto liability insurance is required coverage that protects the insured from bodily injury and property damage as a result of negligence while on the road. It can cover an accident that causes property damage to another driver’s vehicle or buildings, as well as bodily injury to third-party persons in other vehicles.
Auto Physical Damage insurance will protect your owned vehicles while on the road. “This coverage has been receiving more attention in the industry recently because automobiles are simply more expensive to repair now,” McMillan discloses. “When I started driving, if you had an old truck, you probably weren’t going to carry physical damage coverage because it was not going to be worth repairing it. But today, most vehicles and work trucks have cameras and other computerized components that are much more expensive to repair even with a simple backup claim.”
The good news is painting business owners can save on Automobile insurance costs by implementing appropriate risk management controls. “At Central, we deviate our pricing based on the controls the insured has in place, whether that be a formal safety program, telematics on their automobiles that assist the insured in determining if driver controls are being followed, or hiring drivers that have appropriate experience and good driving records,” McMillan offers.
Policy #5 – Property Insurance
Although most painting contractors won’t have as immense property exposure as other businesses, there is a level of risk inherent in storing paint or chemicals like paint remover or solvents that could increase your fire load at occupied or leased premises.
“To ensure adequate coverage for their equipment and materials, I recommend coverage for their personal property and business income,” McMillan says. “While they’re not necessarily tied to an occupied premises, if they were to have a fire that damaged those premises, it could lead to some business income losses as a result of that covered peril.”
Additional Recommended Coverage to Safeguard Your Painting Business
When purchasing commercial insurance for your painting company, it’s important to consider the following policies in addition to those listed above.
- Employment Practices Liability—coverage for the insured in the event of a wrongful firing or discriminatory practices
- Inland Marine or Contractor’s Tools and Equipment—insures your tools and your employees’ tools from damage and other types of claims for that owned property
- Contractor’s Errors and Omissions—provides insurance for business mistakes that would typically not be covered by the General Liability coverage, such as applying the wrong paint to the wrong premises.
Working With a Partner Who Understands Your Business is Key
A reputable insurance provider like Central will help you navigate the complexities of insurance for painters. “Central has deep expertise and experience in the painting and construction industry, as well as a robust Loss Control department and a very responsive Claims department,” McMillan advises. “Claims are going to happen eventually, so you need to know how much the carrier can assist you in developing more robust risk management controls to protect the business. It can be much more expensive on the backend if adequate insurance coverage is not purchased or is neglected.”
Contact your local independent Central agent for more details about insurance for painters or a commercial insurance quote.
