Whenever you budget the expenses of your business, sandblasting insurance must be near the top of the list because you can’t always know exactly what is going to happen in the future.
Need General Liability Insurance for Your Sandblasting
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With the protection provided by liability insurance and all the other sorts of insurance we will tell you about, you can protect your business and yourself in case something unwanted happens.
Like any business owner, for your sandblasting enterprise, you must consider how much financial liability you are taking on.
If your sandblasting business runs without proper insurance, you are taking a giant chance not just of losing some money but of a final wipe-out.
This is because the laws in every state are very strict in enforcing liability on the owners of businesses for the results of their actions.
In this article, we are giving very general guidelines for startup businesses to explain what the main kinds of insurance that you need are, and where possible, a rough guide to how much you can expect to pay.
The question is, can you afford to NOT have insurance for your sandblasting business?
What this means, for any sandblasting business owner, is that if some customer claims that your actions caused them some physical or economic damage, a court can award damages far beyond the total size of your business.
Your sandblasting business is not protected by laws in the same way as states are, where legislation can place a “cap” on the maximum level of liability.
In some states, like Texas, there are specific monetary levels that limit the amount an adjudicator can award in any case against the state.
In a court case, it’s purely the privilege of the jury to award whatever amount they deem appropriate, even sometimes giving a person more than they have sued for.
When you are running your sandblasting operations, you can’t deny responsibility for the outcomes of your actions.
Even more importantly, unless you have spent beforehand the money necessary to have your business running as an LLC, all of that liability belongs to you as an individual.
What does sandblasting insurance protect you from?
For your sandblasting business, the most important kinds of insurance are meant to cover the risks to your business from accidents, from unexpected events, and from mistakes.
Also there are some mandatory kinds of insurance that various states require.
In the next few paragraphs, we will outline the most important points any sandblasting business owner should consider when negotiating the insurance needed.
The main headings of insurance for your sandblasting businesses are liability insurance, commercial insurance, asset insurance and workers compensation insurance.
General liability insurance
Any sandblasting business is dealing directly with customers, and that means you generally have the danger that some accident can happen to them personally or else something of theirs can be damaged.
In such a case, they can sue you for compensation.
General liability insurance policy for your sandblasting business insures you against claims coming from injury to clients or damage to their property.
It protects your sandblasting business from the claims themselves and also to any resulting court costs and legal fees of the lawsuits.
In many cases, it should help you to qualify for extra business from city and state organizations, where contracts require proper liability insurance.
The usual level of general liability insurance for your sandblasting business would be with a cap of $1 million for a single claim and a total of $2 million for the whole year.
See the table in the costing section below for average prices of general liability insurance for your sandblasting insurance operations.
Professional liability insurance for your sandblasting business
In the event where a client alleges some negligence, errors, or omissions in how you conducted your sandblasting business for them, you can quickly face a monetary claim.
Even if the matter against you is decided in your favor, the cost of defense can be large, and the impact on your reputation can be damaging.
Almost all small sandblasting business should have enough professional liability insurance to cover a once-off claim of $25,000, with annual cover of $50,000.
See the table in the cost of sandblasting insurance section below for average prices of professional liability insurance for your sandblasting operations.
Product liability insurance
Whatever goods you sell or advice you give about the goods, you are running a risk that clients may claim that the results didn’t meet your description of function, or that your recommendation was basically incorrect.
You need to be aware of the particular laws of product liability in your own state.
For example, in California, all businesses in the supply chain can be held liable for injuries caused by products claimed to be defective.
To cover yourself against any possible lawsuit, you need Product liability insurance for sandblasting
Only you can know exactly how much insurance you must have.
Best advice is to contact experienced insurance agents, brokers or company representatives for support.
Commercial vehicle insurance for your sandblasting business
Beware! – almost all policies for private vehicle insurance do not cover any event like theft or accidental damage when the car is being used for business purposes.
The proper way to make sure that your vehicle is insured for both its own value, and the valuable contents, is by taking out a proper commercial vehicle insurance package.
Commercial car policies guarantee the value of any vehicle in case of accident, malicious damage, fire, or theft.
Also, in case of any accident, the truck itself, the content and any legal bills, medical expenses, and property damage is guaranteed if your van is involved in an accident.
Most states, other than Virginia and New Hampshire, insist on this type of insurance.
The required value of the insurance is worked-out for the depreciated value of the vehicle, and your intended level of cover of contents.
Tools and Equipment insurance
Since your sandblasting business needs unique and dedicated equipment, you will realize how much it can cost to replace it in case of any damage, loss, or theft.
The tools may be subject to malicious damage, deliberate fire, theft, other such unexpected acts.
In addition, acts of nature like lightning strikes, hurricanes, earthquakes, and other highly damaging natural events can eliminate your whole business in one stroke.
Unless you can afford to immediately replace such specialized gear quickly out of your own pocket, you need full-level equipment insurance so that you can immediately buy everything needed to keep your sandblasting business running.
It is impossible to advise how much equipment insurance you need – it’s really dependent on how much you have invested in your sandblasting business’ equipment.
Commercial Property insurance
Any sandblasting business that owns or rents space in a building must have a commercial property insurance policy.
If you own the space, you certainly have a substantial capital investment, along with a big liability if there’s a mortgage.
Every physical building location should carry insurance coverage for the value of the premises and contents against accidental occurrences like fire and storms, and against criminal damages like theft and vandalism.
If your sandblasting business works in areas of high risk, like Florida or South Carolina, extra coverage may be needed for earthquakes and hurricanes or tornadoes.
In other states like Illinois, where extreme cold snaps can cause damage to outer coverings of sandblasting business premises, there is a need for more supplementary cover than in warmer climes.
Whereas the level of cover depends mainly on the value of the property, it’s not possible to say what cover your need, but we have been able in the table in the cost of sandblasting insurance section below to give some indication of the average prices per million dollars of property insurance for your sandblasting business.
Temporary insurance by month, week or day for your sandblasting business
Is your sandblasting business working part-time or casually, or is the level of business variable?
Using short-term insurance makes perfect sense. Business insurance by the month, day, or week – temporary insurance for sandblasting – are special policies where you can cover a designated period when you want to be covered.
By only paying for that period of cover, you will save by having lower premiums but still having adequate risk cover.
The key feature of short-term insurance is that you pay for the cover for a defined period – a designated date, or a week or month starting on a specific date, for example for 30 days beginning on the specified date.
When you are expecting periods of better business activity, get the existing cover increased.
Talk to your insurance agent, broker or the company’s representatives to see what options you have.
Business Owners Policy BOP for your sandblasting business
You have the chance to combine most of the important kinds of small business insurance in one policy that is known as the business owner’s policy – BOP.
A BOP integrates commercial property and public liability insurance by packaging these coverages into one insurance policy, which can save you money.
BOP insurance will cover you if any claims of injury or property damage are made.
It is often the right choice for small and medium-sized sandblasting businesses, such as yours.
There are two limits that will determine whether BOP is suitable for your own business.
BOPs do not cover your professional liability or commercial vehicle cover.
Also, the size of your business will rule whether you are eligible to take out BOP cover.
The usual business that is allowed to take a BOP policy must have less than one hundred employees, and under five million dollars in annual turnover.
Plus, you must separately take out the required worker’s compensation, health and disability insurance as determined for your state.
Workers Compensation insurance for your sandblasting business employees
In many states, it is mandatory to have workers compensation insurance when your sandblasting business has one or more employees.
Workers compensation insurance covers the operation against any costs that arise if a worker experiences an injury or becomes sick as a result of work.
The benefits cover medical expenses, death benefits, lost wages, and vocational rehabilitation.
Failure to meet a state’s laws in this regard can leave you as the employer required to pay penalties levied by the states.
Some states, such as North Dakota, Ohio, Washington, West Virginia, and Wyoming only allow coverage from the government-run monopoly state funds.
In these states, you may not take out your workers compensation obligations from private insurance providers.
Workers compensation rates are computed based on the employee’s pay, and usually come out at around $1.00 per $100 per month.
However, you must consult the relevant authorities in your state.
Average costs of these types of insurance
Although every sandblasting insurance level is unique, there are enough examples of average quotes from insurance companies for us to give approximate guidelines, including what are the cheapest rates offered.
Of course, you should always check with an agent what’s relevant for your business.
The list below is of annual premiums we have researched for the main types of insurance your sandblasting businesses needs.
|Types of insurance||Price range|
|Equipment insurance||$395 – $1025|
|Commercial insurance||$970 – $2505|
|Public liability insurance||$320 – $725|
|Product liability insurance||$245 – $560|
|Commercial vehicle insurance||$1845 – $3060|
|General liability insurance||$745 – $945|
Cost of insurance for your sandblasting operations depends on many different factors.
We have calculated these figures for small freelance sandblasting businesses.
In larger states like Texas, premiums are generally about 20%-30% higher than national averages, while in smaller states like New Mexico, they can be about 20%-30% lower.
The location and size and type of your sandblasting business can have a big effect on the cost of different policies.
You should discuss with professional insurance agents and brokers, or insurance company representatives.
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As well you can let the internet do the work for you by enquiring about insurance companies near where your business is located.
Another good source of information is the local Better Business Bureau in your town.
What is small business insurance for sandblasting operations?
This is a wide term used to describe common insurance policies designed to protect sandblasting business owners from risks like bodily injury, property damage, claims of negligence.
Does my sandblasting business have to have insurance?
Some of the types of insurance are not mandatory for you to open your business, but they can protect you from risks in your business operations.
Several other forms are required by state law, such as workers compensation and vehicle insurance.
What does a small sandblasting business insurance policy cover?
Liability insurance provides protection against lawsuits or claims filed by a third-party for bodily injury, property damage, or negligence.
The specific cover will vary based on your own operations.
See the table in the costing section above for average prices of the most common policies for sandblasting insurance.
How much will sandblasting business insurance cost?
On top of the size of the business, some other factors, such as location and claims history, are used to determine your policy’s cost.
You should discuss with professional insurance agents and brokers, or insurance company representatives.
You can search for more information insurance for sandblasting , in the search box below, and follow the relevant links.