Siding Installation Contractor Insurance

Business insurance helps you keep your business running by covering legal expenses, professional mistakes, and client disputes.

Why Do Siding Installers Need Insurance?

Siding installation contractors need protection against many things, particularly injury at a job site or mistakes. Siding installation can be very challenging, especially if there are extreme heights involved, steep drops around the building, or overhead power lines.

Without the right insurance, siding installers can be on the hook for significant losses if there is an accident or other damage and might be financially responsible for any damages resulting from a lawsuit.

Then you add the risk of liability like severe accidents and injuries for employees or other contractors. General liability insurance can provide protection for a siding installation business against claims of property damage, bodily injury, or even lawsuits.

It also adds credibility—many customers and clients require proof of insurance before hiring a siding installation company. If you’re an independent contractor, or you have a business with several contractors under your employ, having the right insurance helps you operate confidently, knowing you’re covered if something goes wrong.

What Insurance Do Siding Installation Businesses Need?

Running a siding installation company involves specific risks, such as working at heights or handling heavy materials near client property. To safeguard your business against lawsuits, injuries, or accidents, you need a robust insurance strategy.

Here are the key business insurance policies siding contractors should review.

General Liability Insurance

Consider this the foundation of your protection plan. General liability covers third-party bodily injuries, property damage, and personal injury claims. If your business operations cause harm to a client or a bystander, this policy helps pay for medical expenses, repairs, and legal defense costs.

Example: While removing old siding, a worker accidentally drops debris that shatters a client’s patio door. General liability would pay to replace the door and handle, related legal costs.

Workers’ Compensation Insurance

Siding installation is physically demanding work. If you hire employees, most states require you to carry workers’ compensation. This policy provides coverage if a crew member gets hurt or sick because of their work. It handles medical bills, lost wages, and rehabilitation costs.

Example: An employee slips off a ladder and breaks their ankle. Workers’ compensation pays for their hospital visit and a portion of their income while they heal.

Commercial Auto Insurance

Personal car insurance policies rarely cover accidents that happen while driving for business. If you own trucks or vans to haul siding materials and ladders, you need a commercial policy. It covers liability and vehicle damage if you or a worker gets into an accident.

Example: You are driving the company truck to a job site and side-swipe a parked car. Commercial auto insurance covers damage to the other vehicle.

Professional Liability Insurance

Also known as Errors and Omissions (E&O), this insurance covers financial losses caused by the quality of your advice or work. It protects you if a client claims you were negligent or failed to deliver the services promised in your contract.

The average cost for this type of protection is roughly $74 per month.

Example: You finish a project, but the client claims the siding was installed improperly, leading to moisture buildup inside the walls. They sue for damages. Professional liability helps cover legal claims.

Business Owner’s Policy (BOP)

A BOP is a cost-effective way to get broad coverage. It usually bundles General Liability and Commercial Property insurance into a single package. This is often cheaper than buying the policies individually and is great for small to mid-sized siding businesses.

Example: A windstorm damages the sign outside your office and breaks a window. The BOP covers the repairs to your building.

Hired and Non-Owned Auto (HNOA) Insurance

This coverage is vital if your business uses vehicles it does not own. This includes employees driving their personal cars for work errands or vehicles you rent for temporary use. It provides liability protection for the business if an accident occurs in these vehicles.

Example: You ask an office assistant to drop off permits at the city hall in their own sedan. On the way, they cause a minor traffic accident. HNOA steps in to cover the liability costs.

Umbrella Insurance

Sometimes a standard policy limit is not enough. Umbrella insurance provides an extra layer of liability protection that sits on top of your other policies, such as general liability or commercial auto. It kicks in once the limits of the primary policy are exhausted.

Example: A major accident involving your work truck results in a lawsuit for $1.5 million. Your commercial auto policy only covers up to $1 million. Umbrella insurance pays the remaining $500,000.

Commercial Property Insurance

If your siding business has a physical location, such as a shop, warehouse, or office, commercial property insurance is necessary. It protects the building itself and the contents inside against perils like fire, theft, and severe weather.

Example: A fire breaks out in your warehouse, damaging the structure and destroying stored inventory. This policy pays for the repairs and lost stock.

Business Personal Property (BPP) Insurance

BPP specifically covers movable assets. This includes your office furniture, computers, and the tools you use for siding installation. It pays to repair or replace these items if they are stolen or damaged by a covered event.

Example: Thieves break into your shop and steal expensive cutting tools and compressors. BPP covers the replacement cost of the stolen gear.

Cyber Liability Insurance

Siding businesses often store client data, including addresses and credit card numbers. Cyber liability insurance protects you against the fallout of data breaches and cyberattacks. It covers legal fees, customer notification costs, and credit monitoring.

Example: A hacker gains access to your billing system and steals client credit card information. Cyber liability insurance helps pay for the required notifications and legal defense.

These policies create a safety net for siding installation professionals. By understanding the specific risks you face, you can choose the right mix of coverage to keep your business running smoothly.

Cheapest Siding Installation Workers’ Compensation Insurance

The cheapest option for Workers’ Compensation insurance is AmTrust, with average annual costs starting around $4,610 for a small crew.

Note: These estimates are based on a siding business with a small payroll (e.g., 1-2 employees) in a state with average rates. Workers’ Comp premiums are highly dependent on your state’s regulations, total annual payroll, employee job classifications, and your company’s experience modification (EMR) factor.

Cheapest Siding Installation Contractors’ General Liability Insurance

The cheapest option for General Liability insurance is offered by Acuity, with policies starting at $1,725 per year.

Note: These estimates are based on a small siding business with standard $1 million/$2 million liability limits and a low claims history. Actual premiums will vary based on your state, business size, annual revenue, specific operations, and past claims history.

Cheapest Siding Installation Contractors’ Business Owner’s Policy

The cheapest option for a Business Owner’s Policy (BOP) is The Hartford, with average annual premiums around $1,180.

Note: These estimates are based on a siding business that qualifies for a BOP, which combines General Liability and Commercial Property. This figure assumes ownership of a small value of tools and equipment (e.g., under $15,000) and a low-risk profile. Actual premiums will vary based on your property limits, revenue, and location.

How Much Does Siding Installation Business Insurance Cost?

Siding installation contractor insurance typically costs around an average of $400 to $2,000 per year, depending on many factors, particularly your location and the requirements of the job site. Installing siding on a level location without a lot of nearby traffic is less risky than working on a four-storey barn, next to a busy road with a steep cliff on one side.

Several factors influence the cost of business insurance coverage, including your business location, the number of employees, the types of services you offer, the records you keep, your claims history, and whether you transport expensive tools.

Insurers also consider the amount of coverage you choose and whether you package policies together. While it may be tempting to go with the cheapest option, it’s important to choose a plan that truly protects your business from its most likely risks.

Note: The estimates provided are based on a small siding installation business with a limited payroll, a single commercial vehicle, and standard coverage limits. Actual premiums will vary significantly based on your specific location, business size, number of employees, payroll, claims history, coverage limits selected, and the insurance provider.

How Is Your Siding Installation Business Insurance Cost Calculated?

Insurance underwriters analyze several risk factors to set your rates. The specific nature of your siding work is a primary influence. For example, installing siding on high cliffs or large agricultural barns carries more risk than working on single-story homes. Therefore, high-risk projects often lead to higher premiums.

Your track record is another key element. If you have filed claims in the past, insurers might view your business as a financial risk. They also calculate costs based on the value of your tools, your work vehicles, and your coverage limits. Even your specific business structure, such as an LLC or sole proprietorship, plays a role in the final calculation.