Fire protection contractors design, install, and repair automated systems to detect smoke and fire. These systems can protect businesses, homes, and lives from damage or injury. There needs to be more room for error in these companies’ work. Mistakes can lead to costly property damages and even lawsuits. Legal expenses and judgments rendered against a business may be covered by professional liability insurance.
Commercial Auto
Fire suppression, detection, and extinguisher systems protect buildings and people from the devastating effects of fires. But they’re not without risk for the companies that install them. Errors in work can cause damage, injury, or death. Professional liability insurance for fire protection contractors helps cover legal fees, judgments, or awards awarded against your company if held liable for damages caused by your negligence.
Your fire protection installation business likely uses trucks, vans, or box trucks to transport equipment and supplies to and from job sites. Commercial auto insurance protects if these vehicles are involved in accidents or are stolen. A good option may be a commercial combined or business owners policy (BOP) that bundles general liability with commercial auto and property insurance. The website will run a motor vehicle report when determining rates, considering the number of drivers, truck size and use, and driving history.
General Liability
Fire suppression companies offer a range of solutions to protect people and property from the dangers of fire. They can install sprinkler systems, smoke detectors, fire alarm systems, and specialty extinguishers in an emergency. As businesses that serve to keep people and things safe, they need more room for error in their work. Yet mistakes do happen – sometimes, the results of those errors can be significant damage, serious injury, or even death. In the unlikely event that you are found accountable for losses brought about by your carelessness, professional liability insurance may assist in covering court costs or awards.
A standard general liability policy can include per-occurrence and aggregate limits. Consider adding umbrella or excess liability insurance for larger jobs—other industry-specific coverages to consider workers’ compensation, commercial auto, and environmental insurance. Product liability coverage might also be necessary if your company manufactures or fabricates fire protection products.
Worker’s Compensation
Fire protection contractors install systems that are depended upon by occupants of warehouses, manufacturing plants, office buildings, hospitals, apartment complexes, and residential homes to keep them safe from life-threatening fires. These companies’ work is highly specialized and requires special training and skills to install and repair. Even though these workers specialize in a niche field, working with hazardous materials like electrical wires and steel is still dangerous. When an employee is injured, employers must pay worker’s compensation for lost income and medical expenses.
In addition, if a fire protection contractor company owns or rents any trucks or trailers to haul their equipment, they need commercial auto insurance. This coverage pays for property damage to any of their owned vehicles and liability if an accident occurs while driving them. Worker’s comp rates are based on the number of claims, so high frequency means higher costs, while lower loss experience generally results in a lower premium.
Equipment Insurance
Fire protection contractors do crucial work, often saving lives and property. They are responsible for installing equipment that can prevent severe damage and disasters, and there is a high risk involved in this type of work. Fire protection contractors must demonstrate their skills and expertise by joining industry organizations such as the National Fire Protection Association or the Fire Suppression Systems Association. These associations help keep members up-to-date on the latest equipment, practices, and code compliance.
A fire safety business can also consider product liability insurance. It would protect the company from claims arising from any products they manufacture or distribute, such as fire suppression or defective detection systems that cause injuries/damages. In addition, commercial auto coverage can help cover the cost of any vehicles your employees use while working on client sites or delivering equipment to different locations.
