Paperhanging Contractors serve residential, commercial, and governmental customers by applying all types of decorative wall coverings, but not including paint or paneling. Most types of products installed are paper, vinyl, cork, burlap, and carpet type wall coverings. In many cases, a paperhanging contractor will also have to remove previous wallpaper products and therefore will have to use sharp specialty tools and ladders.
Like many other contractor categories, paperhanging contractors frequently must work from elevated surfaces such as ladders or scaffolding and as such, there is significant risk for bodily injury and proper damage to third-parties. Since hazardous specialty tools are frequently used by installers, there is also significant risk for injury to employees and subcontractors. In order to mitigate the risks involved while on the job, Fairbanks Insurance Brokers recommends a package of insurance coverages designed for paperhanging contractors.
The general liability policy acts as the basis for all contractors insurance packages. GL will provide coverage for the costs of claims resulting from bodily injury or property damage to third-parties and it will cover defense costs for representation by attornies and investigators.
Even though most state licensing boards require an active workers’ compensation policy before they are willing to issue your contractor’s license, most project managers and project owners will require proof of this coverage before you can start on a project. Your workers’ compensation rates are predicated on the type of contracting services you offer and also any claims history that your company has had in the past.
Although your state’s licensing department will require a licensing bond in order to become a licensed contractor, you can also expect to be required to purchase a Bid Bond and Performance Bond to protect your customer, subcontractors, and suppliers. It’s important to note that although bonds are provided by insurance companies, a bond is more like a line of credit than an insurance policy.
As a paperhanging contractor, you are likely to employ vans, box trucks, and trailers to transport your tools, equipment, and product to the jobsite. Your commercial auto insurance policy will cover all of your company vehicles in the event of an at-fault accident or if any of your vehicles are damaged in an accident, damaged from vandalism, or are stolen.
Paperhanging contractors must use various types of expensive tools and equipment in the shop and at the job site. Your Tool & Equipment coverage (Inland Marine Insurance) provides the coverage needed when tools and equipment are stolen or damaged as the result of a covered peril.