Why You Need Business Insurance for Your Home Improvement Company

Are you thinking of starting a home improvement company in Central Jersey? This is likely to be a winning business idea as more Americans invest in significant renovations and home improvement projects. But starting a home improvement company will take more than just the right tools and the right know-how. You’re also going to need the right business insurance.

Read on to learn why you need business insurance for your home improvement company and what types of coverage you need to secure.

Business Insurance Requirements for New Jersey Contractors

If you’re running a home improvement company, you’re most likely working as a contractor. That means that you will need to acquire a contracting license, which comes with some insurance requirements. Let’s take a lot at the insurance you’ll need to run a compliant home improvement company in Central Jersey.

General Liability Insurance

To get your contracting license in New Jersey, you will have to meet several requirements. One of them is proof of a general liability insurance policy that provides a minimum of $500,000 of coverage per incident. General liability insurance for contractors typically covers:

  • property damage during a project
  • property damage resulting from negligent work
  • injuries during a project
  • injuries resulting from negligent work

For example, if you or one of your employees damages a client’s home while completing a project, you will be held liable for that damage, but general liability insurance will step in to provide the coverage you need to avoid paying for that damage out of pocket.

Worker’s Compensation

With a few exceptions, most home improvement business owners will need to take out a worker’s compensation policy. While general liability protects your finances and your client’s homes and health, worker’s compensation protects the finances and health of your employees. If an employee sustains an injury on the job, you may need worker’s compensation to cover their medical bills as well as any lost income they accrue during recovery.

Going Beyond Insurance Requirements

There are additional business insurance policies that you may want to consider investing in even though they aren’t required. You can often bundle these types of business insurance options into one policy with a single premium or pick up only those policies that you need. Let’s take a look at common types of nonessential business insurance that home improvement companies benefit from.

Commercial Property Insurance

If you have a brick-and-mortar location, whether that’s an office space or a warehouse, you should get commercial property insurance. Commercial property insurance covers:

  • damage to the building or structure
  • damage to tools and equipment
  • vandalism and theft

Whether you lease or own your property, this coverage is crucial. 

Commercial Auto Insurance

If you have a work truck or work van, you will need commercial auto insurance. Commercial auto insurance covers any damage caused while operating the vehicle or any damage sustained by the vehicle. You may also want to take out non-owned liability insurance to cover any accidents your employees may have while at a job site in their vehicles. 

Business Income Insurance

We know how unexpected changes can impact businesses in every industry. Business income insurance can provide coverage when you are unable to earn money due to property damage. A policy that includes interruption insurance can also provide coverage when your business gets temporarily shut down for unexpected reasons.

The Benefits of Getting Proper Coverage

We’ve talked about the different types of business insurance you should have for your home improvement company. Now let’s talk about the importance of getting a policy that truly fits your needs. The right insurance plan always provides better protection.

Protection Against Financial Loss

Ultimately, business insurance prepares you for worst-case scenarios. No, you don’t want to damage a client’s home or lose employees to on-site injuries. However, life happens fast, and insurance protects you from losing financial stability when the worst does occur. 

Meeting Licensing Requirements

At the end of the day, it’s never a good idea to try to get around legal licensing requirements. Running a home improvement company without proper licensing exposes you to unnecessary legal risks. Letting your insurance policy lapse is a surefire way to lose your license, which can spell ruin for your company.

Boosting Client Confidence

Today. consumers are well-educated and do their research before making a decision. Most of your potential clients will know that hiring an uninsured contractor can leave them vulnerable. As a result, you’re likely to lose business if you don’t have any insurance protecting your business. And the inverse is also true–getting the right coverage will boost client confidence. 

Central Jersey Insurance Associates Can Help

Now is a great time to take your home improvement skills and turn them into profit. If you’re considering starting a home improvement company, you’re already on the right track. Learning about business insurance is a key step in the process of launching a contracting business.

Now, it’s time to make sure that you’re getting the best rates and best coverage for your needs. Central Jersey Insurance Associates are here to help. With years of experience, we can help you to create a customized insurance plan and get better protection for your company.

To get started, contact us today. We look forward to helping you turn your dreams into a reality.