Business guide
Painting Contractor Insurance: What Coverage You Need
One spilled gallon on a hardwood floor can cost more than the whole job. Here is the coverage most painting businesses carry, what each policy pays for, and when clients will ask to see it.
This is general information, not insurance or legal advice. Requirements differ by state and by client. Talk to a licensed insurance agent who works with contractors.
The core policies
| Policy | What it covers | Painting example |
|---|---|---|
| General liability | Damage to other people's property and injuries to people who aren't your employees | A ladder tips into a client's window; overspray lands on a neighbor's car |
| Workers' compensation | Medical bills and lost wages for your employees hurt on the job | A crew member falls from a ladder |
| Commercial auto | Vehicles used for business | Your work van rear-ends someone on the way to a job |
| Tools and equipment | Theft or damage to your gear, on site or in transit | A sprayer and ladders are stolen from your truck |
General liability
This is the policy clients, property managers, and general contractors ask for first. It pays when your work damages someone else's property or injures someone who isn't on your payroll.
Many commercial clients and general contractors set minimum limits in their contracts, and $1 million per occurrence with $2 million aggregate is a common requirement. Check the contract before you buy.
Workers' compensation
Once you hire employees, most states require workers' comp. The employee count that triggers the requirement varies by state, and sole owners with no employees are often exempt. Texas is the notable exception: private employers there can choose whether to carry it, though going without has legal trade-offs.
Paying helpers as independent contractors doesn't automatically get you out of it. States look at how the work is actually controlled, and misclassification can bring penalties.
Commercial auto
A personal auto policy may not cover a vehicle used mainly for business, especially one carrying equipment or driven by employees. Ask your agent whether your use needs a commercial policy.
Tools and equipment
Often sold as an "inland marine" policy, this covers gear that moves between job sites. Homeowners and renters policies usually limit or exclude business property.
Coverage people forget
- Pollution liability for lead jobs. Many general liability policies exclude pollution, which can include lead dust. If you work on homes built before 1978 under the EPA's RRP rule, ask whether you need contractor's pollution liability.
- Umbrella coverage. Extra liability above your other policies' limits, useful for larger commercial work.
- License bonds. Some states and cities require a surety bond to get or keep a contractor license. A bond protects the client, not you.
Certificates of insurance
A certificate of insurance (COI) is a one-page summary your agent issues to prove you're covered. Expect to send one before starting work for property managers, commercial clients, and many homeowners. Some will ask to be named as an "additional insured," which extends your liability coverage to them for your work. Your agent can usually issue these quickly.
What affects your premium
- Payroll and annual revenue
- Interior versus exterior work, and how much is done on ladders or lifts
- Residential versus commercial jobs
- Your claims history and years in business
- Your state
Show it on your estimates
A line such as "Fully insured, certificate available on request" on every estimate answers a question homeowners are already asking. Add it to the license field in the estimator.
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