As we all know, fires are incredibly dangerous and can even turn deadly, especially when things get out of hand. A single spark can be the cause of a raging fire, and an entire building could be engulfed in flames within a couple of minutes. Fires claim the lives of so many people every year, and not only that, but it’s also the cause of many major injuries and property damages.
In an effort to minimize, if not prevent, the dangers involved with fires in a commercial setting, such as restaurants, schools, office buildings, hotels, and more, it is required by law that these infrastructures install fire sprinklers or any fire suppression system.
However, even when these systems are already installed, there’s still a minor chance that things won’t go as intended and a massive fire will spread out. For instance, there’s always the possibility of faulty equipment or that the installation wasn’t done correctly. If someone gets hurt because of this and files a lawsuit against you, you could end up paying hefty fees. As such, it’s important that you have coverage to help with any financial burdens.
Why Is It Important to Have This Kind of Insurance?
Even though fire sprinkler contractors have undergone ample training and education to ensure satisfactory service, there’s still a chance that unexpected issues will occur after the fire suppression system has been installed. Some examples include improper installation and damaged or malfunctioning equipment, to name a few.
If for any reason, the installed fire suppression system doesn’t work in the event of a fire or if someone from your team accidentally damages the property during installation, the owner of the building or establishment may take legal action against you. Whether you’re liable or not is out of the question—you’d still end up paying a hefty amount.
That’s why it’s important to have the right kind of fire sprinkler contractor insurance to help lessen the financial burden. With such insurance, you can rest easy knowing you, your staff, and your company are well-protected.
Cost
The monthly fee for this kind of insurance policy definitely depends on where you live, the size, experience, sales, and even payroll. However, based on the standard General Liability Insurance policy, which is around $1,000,000 to $2,000,000, a fire sprinkler contractor insurance should be around $87 to $119. But again, it depends on the factors mentioned.
The Different Types of Insurance Needed
There are different types of insurance coverages that fire sprinkler contractors should have. Some of them are legally required, while others are merely optional. However, it’s always a good idea to invest in all of them to ensure protection no matter the situation.
Workers’ Compensation
In case your employee gets hurt or injured while on the job or if they develop some kind of illness due to their line of work, workers’ compensation insurance will be able to help cover any medical costs. This particular insurance can also help provide funds to that employee in lieu of their lost wages.
Commercial Auto
It’s highly likely that you and your team use vans, trucks, or any vehicle in general in order to do your work. As we all know, there’s always a certain risk to being on the road. In case your staff gets into an accident while on duty, commercial auto insurance can help cover medical costs as well as cover any vehicle damage.
Commercial General Liability
Fire sprinkler contractors are experts at what they do, and they know to be careful when installing a fire suppression system at a client’s property. However, accidents happen and in the event that your employee damages the property during installation or if a third-party gets hurt because of your employee (e.g., a heavy tool falls and hits someone), this insurance will be able to help you cover any legal fees as well as medical fees.
Professional Liability
Lastly, professional liability insurance is one of the most important ones to invest in for your contractors. Otherwise known as errors and omissions, this type of insurance will come especially handy if your staff happens to make a mistake. For instance, if the fire sprinkler system wasn’t installed properly, professional liability can help cover any possible lawsuits as well as any damages caused by the mistake.
Risks & Exposures
Without a doubt, there are risks involved in this line of work. As such, it’s important to be prepared at all times and to always put up proper signage when on the job. That said, here’s a list of some of the most common risks and exposures.
Premises Liability Exposure
This type of exposure at the contractor’s office isn’t common because these areas are typically restricted from public access. However, off-site exposures are more prominent. Installing a fire sprinkler at someone’s property has a very high chance of property damage because you’ll be working throughout the site. As such, it’s important to always close off the area with barriers and restrictions and to put up the proper signs and warnings to protect other people from slipping over debris, building materials, tools, etc.
Workers Compensation Exposure
This type of exposure comes from welding, wiring, cutting, drilling, etc. After all, being a fire sprinkler contractor requires you to use all kinds of tools in order to do the job well. There’s always the risk of an employee getting hurt or injured due to the hand tools used, falling, or slipping. They could even develop back injuries and sprains.
You must always provide safety equipment to your staff when they’re on the job, and make sure that all of them are trained adequately.
Crime Exposure
When we say crime exposure, this typically means that an employee has been dishonest. That’s why you must always perform background checks and look up each employee for any possible criminal history before sending them out for work or allowing them to handle money. Remember that your contractors will have ready access to the client’s property, so you need to make sure that the people you send over are trustworthy.
Conclusion
If you still haven’t invested in a fire sprinkler contractor insurance, then you need to change that fact as soon as possible. If you want to protect your business from being hit by a hefty financial burden, you need to make the wise and practical choice of investing in this kind of insurance coverage. If you need assistance or more information, feel free to speak with a reputable broker.