Most people never think about the fire sprinkler systems in their home or business, at least not until there’s a fire, at which point there is no tolerance for error or malfunction. In other words, the fire sprinkler business is a high stakes business with substantial risk, and sprinkler contractors need to be properly insured to manage that risk.
As a sprinkler contractor, you have a lot on your plate:
- You add sprinkler systems to new construction as part of the buildout under a general contractor.
- You install new sprinkler systems in existing buildings that might have out-of-date safety features.
- You repair and replace existing systems in residential and/or commercial buildings.
- You inspect sprinkler systems to make sure they’re working properly.
- And, on top of all of that, you may be supervising employees and running a business.
The right fire sprinkler contractor insurance coverage can bring peace of mind and protect you from a multitude of risks.
Real Risks Facing Sprinkler Contractors
Your customers rely on you to help keep them and their property protected from fires. But no system is perfect. Accidents happen all the time, and fire suppression systems don’t always work as intended.
Consider just a few hypothetical scenarios that could result in a claim against you:
Contractor Risks Vary by State
Some states like Arizona, California, Oregon, Washington, New Jersey, and others require licensed contractors to carry a minimum amount of liability insurance.
In most states, fire sprinkler contractors will be required to carry workers’ compensation insurance and license bonds. It’s important to understand the type of coverage you must carry as penalties for not doing so can be significant, not only in terms of monetary penalties but you may also be at risk for losing your license to conduct business.
What Type of Insurance Do Sprinkler Contractors Need?
While the specifics may vary depending on your unique business and your coverage needs, in general there are certain policies that should be at the top of your list for coverage.
General liability insurance policies provide coverage when customers or others are injured or when their property is damaged. As its name implies, general liability insurance is “general” and offers broad coverage to protect you. Another big benefit is that, as your business grows, your general liability coverage will grow with you.
Another important type of coverage is surety bonds. Surety bonds offer a guarantee that the bids you create for customers have been created in good faith, that you will complete projects on time, following appropriate standards and that you will pay your subcontractors.
How Much is Insurance for Sprinkler Contractors?
As you might imagine, there can be a number of considerations that go into determine the precise cost of insurance for sprinkler contractors. For example, your general liability coverage might cost just a few hundred dollars—or it might cost thousands of dollars. It depends on the size of your business, how much revenue you make, how many employees to have, where your business is registered and the specific types of projects you work on.
