Tile Business Insurance
Getting insurance for your tile business is essential; owners of tile businesses need to protect themselves against a variety of different risks, including employee accidents, property damage disputes, and negligent acts or omissions.
For example, an employed tiler may fall due to a slippery floor in a customer’s home, or an improperly installed floor may cause a client injury.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Tile Business
General liability insurance is — generally speaking — one of the most important insurance policies for tile businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Having said that, your tile business could benefit from purchasing additional coverage. This is because a general liability policy will not always be enough to “fully” protect you from all foreseeable risks.
Additional coverage options worth considering include:
- Business income insurance — Covers part of your lost income in the event that you need to shut down.
- Commercial auto insurance — Covers damage related to a company vehicle (e.g., as a result of a traffic accident, etc.).
- Workers’ compensation insurance — Protects you against employee-related claims.
When you are purchasing your business insurance, you will need to decide what type of insurer you will go with.
There are two options available as of 2024:
- Traditional brick-and-mortar insurers (e.g., Nationwide, etc.).
- Online insurers (e.g., Next Insurance, etc.).
All in all, you will likely benefit more from going with an online insurer as a small business owner; this is because online insurers are generally a lot more affordable as a result of having lower operating costs.
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Cost of General Liability Insurance
The average tile business in America spends between $500-$1,500 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a tile business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for a Tile Business
Example 1: A customer is visiting your store to pick out tile for a bathroom renovation. While she is rounding a corner, one of your employees runs into her, dropping a box of tile on her foot and breaking it. She asks that your business cover her medical treatment for the broken foot. Your general liability insurance policy will likely cover this expense.
Example 2: One of your employees is bringing a dolly stacked with boxes of tile to the car of a customer when he trips and falls. The dolly falls over, spilling the tiles all over the car of the customer. The damage is extensive, and the customer files a lawsuit against your business. The general liability insurance you carry will pay for your legal fees, including the cost of a settlement if necessary.
Example 3: A visitor to your store begins to rant incoherently and knock over boxes of tile, scaring both customers and employees. You call the police, and they take the man away. Later, you are notified that the man is suing your business over the incident. Your general liability insurance will pay for your legal costs related to the lawsuit. It will also pay for any payouts or settlements if you need to settle the case out of court.
Other Types of Coverage Tile Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Commercial Property Insurance
Your stock of tile, along with your other inventory, took a considerable investment to acquire. Losing all of your inventory, or even a large portion of it, would put a great financial burden on your business. But if you have commercial property insurance and you lose your property due to a covered event—like a fire—then you can get compensation to help buy new inventory. With the financial help provided by your insurance policy, you can get new tile and other supplies as soon as possible so you can get back to doing business.
Workers’ Compensation Insurance
Workers’ compensation insurance will ensure that medical treatment for employees’ work-related injuries is paid for. It will also cover some of the wages they lose while recovering. Most states require employers to carry workers’ comp.
Commercial Auto Insurance
If you have one or more vehicles that you use primarily for your tile business, you need commercial auto insurance. Your state requires auto insurance for commercial vehicles. Having commercial auto coverage will ensure that you can get your vehicle repaired or replaced in the event of an accident. It will also pay for medical care if anyone is injured.
Commercial Umbrella Insurance
The general liability insurance policy you have is excellent for most circumstances, but it is possible to exceed your policy limits—like if you lose a major lawsuit. With just a general liability insurance policy, when the limits of your policy are exceeded, you are left needing to pay the damages that are left over. But if you have a commercial umbrella policy, it will pick up where the general liability insurance leaves off so you don’t have to pay the rest out of pocket.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your tile business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Tile Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Even though getting business insurance will not be a legal requirement in most cases, it is highly recommended.
This is because as soon as you start your tile business — and begin interacting with clients and/or employees — you will inevitably open yourself up to certain risks. If you hire employees, you may also be legally required to purchase workers’ compensation insurance.
Not necessarily. Certain exceptions may be written directly into your tile business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.