Painting contractors in Central New York know their trade. You know surfaces, coatings, application techniques, and how to leave a job site looking sharp. What's less clear for many painters is how well their insurance policy actually holds up when something goes wrong on the job.
A standard general liability policy covers a lot — but not everything. Accidental damage to a customer's belongings, materials lost in transit, or a dispute involving a subcontractor can all fall outside what a basic policy addresses. When those gaps show up, they tend to show up at the worst possible time.
At the Horan insurance agency, we work with painting contractors throughout Central New York to help them understand what their current policy covers and where the gaps might be. We work with multiple carriers so we can help you explore options that fit your situation.
In this article, we'll cover three endorsements that painting contractors should know about — Voluntary Property Damage, Installation Floater, and Waiver of Subrogation — and explain why your subcontractors' insurance matters too.
How Voluntary Property Damage Coverage Can Help Cover You and Your Customers
Typical business liability policies don’t cover accidental damage to a customer’s property that isn’t part of your work but that you are responsible for or can control at a job or work site.
To paint a picture of how that works, let’s say you have a job to paint a homeowner’s interior in Manlius. The homeowner insists you move furniture to gain access to walls.
As you move an expensive ornate mirror into a room that isn’t being painted, you bump a display case that sends a delicate but pricey porcelain vase tumbling. The mirror slips from your grasp and also shatters on the hardwood floor.
Will your regular liability policy pay for the shattered vase and mirror and the damage to the floor?
Since damage to those things wasn’t directly related to you actively painting a wall, your standard policy won’t cover them. This situation could happen to you. Without adequate coverage, you could end up paying a lot of money out of pocket.
The policy option that basically removes the care, custody, or control exclusion is called Voluntary Property Damage (VPD). This means if you have to lift heavy antique furniture to get to a wall or remove expensive blinds, mirrors, vases, pianos, or any item of value that could be damaged, you’d be covered with no hassle.
Back-and-forth exchanges with an insurance agent and carrier representatives are the last thing on your mind. VPD coverage is the answer. It eliminates the uncertainty of care, custody, or control and saves contractors like you from possible huge out-of-pocket costs. Above all, it can satisfy your customers!
What Is Installation Floater Insurance, and Why Do Painters Need It?
When small contractors work on a project, they may need to insure the property they’re installing or building, such as building materials. This property can move from one place to another, so it needs a special type of coverage called installation floater insurance.
It’s a type of inland marine insurance that covers items that are being transported, stored, or installed at a customer’s premises. This coverage lasts until the property is used for its purpose or the client approves the work.
It can cover losses due to theft, fire, vandalism, or other causes of damage that may occur before the materials are fully installed and accepted by the customer.
By way of example, say a refrigerator is delivered to a customer but is still in the box — the installation hasn't happened yet. This is something that would be covered by the floater since the fridge hasn't been unpacked, plugged in, and set up.
If a sudden fire impacts the building where the fridge is stored, any damage to the fridge would be covered by the installation floater. However, the appliance dolly that was also damaged would not be.
This insurance is especially important if you’re a contract painter who works with expensive or specialized materials, such as custom-made paints. The paints could be stolen or damaged while in transit or at the job site, resulting in financial losses.
Installation floater insurance can also cover the labor costs associated with installing the materials, such as wages, taxes, and overhead.
With installation floater insurance, you can help cover your investment in materials and equipment and work toward ensuring that your projects are completed on time and within budget.
What Is a Waiver of Subrogation, and When Do Painters Need It?
A waiver of subrogation is a clause in an insurance contract that prevents the insurer from pursuing a third party who is responsible for causing a loss to the insured. In other words, it waives the insurer’s right to recover the money it paid to the insured or to a third party on behalf of the insured.
A waiver of subrogation can be beneficial for painters who want to avoid legal disputes and maintain good relationships with their clients and subcontractors.
To put it into perspective, let’s say you hire a subcontracting painter named Herman. You’ve taken Herman under your wing, but one day, he uses a spray gun to paint the exterior of a North Syracuse house, and the wind blows the paint onto the neighboring cars and windows. The vehicle owners demand compensation for the damage.
After the insurer pays for the repairs via your painter’s insurance policy, it decides to go after Herman. However, if you have a waiver of subrogation in your policy, the insurer cannot sue Herman to recover the money it paid.
A waiver of subrogation can also help cover you from being sued by your client's insurance company. So, if you accidentally spill paint on his wife's mink stole, and their insurer pays for the cleaning or replacement, the carrier may try to sue you to recover its costs.
But with a waiver of subrogation in place, or if the client agrees to sign one before hiring you, the insurance company cannot pursue a lawsuit to recoup its loss.
A waiver of subrogation usually comes with an additional cost to you, as it increases the risk for the insurer. Therefore, weigh the benefits and drawbacks of having such a clause in your policy.
Also, consult with your insurance agent or broker before signing any contracts that include a waiver of subrogation clause.
Why Your Subcontractors Need to Be Insured
Contract painters often hire subcontractors to help them complete large or complex projects. You’ve probably done this too. However, hiring subcontractors also comes with risks. If a subcontractor causes property damage or injury to themselves or others, you and your client could be held liable for the costs.
That’s why you need to make sure your subcontractors have their own insurance policies. This way, the subcontractor’s insurance can cover the claims arising from their work, and you can avoid paying out of pocket or having your insurance rates go up.
Some of the insurance policies that subcontractors should have include:
- General liability insurance: Covers claims of bodily injury or property damage caused by the subcontractor’s work.
- Workers compensation insurance: Helps cover medical expenses and lost wages for employees who get injured or sick on the job.
- Commercial auto insurance: Helps pay for damages or injuries caused by vehicles used for business purposes.
Learn more about these painter’s insurance options.
You should always ask for proof of insurance from your subcontractors before hiring them. And request to be added as an additional insured on your subcontractor’s policies, as this gives you extra protection if a claim is filed against you because of the subcontractor’s work.
When your subcontractors have their own insurance, you can help cover yourself, your clients, and your business from potential lawsuits and losses.
Understanding Your Painter's Insurance Options in Central New York
Painting contractors face real risks on every job — accidental damage, materials lost in transit, subcontractor disputes. A standard policy doesn't always address all of them. We covered three endorsements worth knowing: Voluntary Property Damage, Installation Floater, and Waiver of Subrogation. Each one addresses a gap that a basic policy leaves open.
We also covered why your subcontractors' own insurance matters — and how requesting additional insured status can reduce your exposure if a claim arises from their work.
At the Horan insurance agency, we work with multiple carriers, which means we can compare coverage options and help you think through what makes sense for your painting business. We'll walk you through what your current policy includes and where it may fall short.
Click the Get a Quote button below to start a conversation with one of our licensed insurance agents about your painter's insurance options.
Topics:
