What Insurance Do Deck and Fence Companies Need?
Running a deck and fence company comes with its fair share of risks. Do you have enough business liability insurance to protect your company from lawsuits?
Deck and fence contractors need liability insurance for financial protection against injuries, mishaps, and accidents involving clients and suppliers and for any third-party property damage.
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What kinds of liability insurance do deck and fence companies need?
Commercial general liability insurance (CGL)
What it covers:
CGL is the cornerstone of insurance for any contractor. It covers third-party bodily injury, property damage, and legal expenses if someone sues your deck and fence business.
Why it's important:
Imagine accidentally damaging a customer’s irrigation system while digging post holes for a fence. Or a visitor trips over your equipment on a job site and injures themselves. These are common liability risks that CGL can help cover.
Typical coverage limits:
Most contractors carry at least $2 million in liability coverage, though this can be higher depending on the size and the work done.
Errors and omissions insurance
What it covers:
Also known as professional liability insurance, E&O insurance protects you if a client claims your professional advice, design work, or services caused them a financial loss.
Why it's important:
If your company offers design consultations for custom decks or fences, and a client claims your recommendation led to poor structural results or property issues, professional liability can help with legal fees and settlements.
Cyber liability insurance
What it covers:
You may accept credit card and debit payments. Cyber liability insurance will help protect your business financially in case of a cyber-attack.
Depending on the size of the data breach and the information that was taken, the customers who are affected can hold you liable and sue you for damages.
Why it’s important:
This type of insurance financially protects your deck and fence company from cyberattacks and data breaches.
Did you know that cyberattacks are among the fastest growing claims for businesses?
What other insurance do deck and fence contractors need?
Commercial auto insurance
What it covers:
If you use vehicles to transport materials, equipment, or workers to and from job sites, you need commercial auto insurance. It covers property damage, bodily injury, and theft related to business vehicle use.
Why it's important:
Personal car insurance won’t cover accidents or damage that occur while using your vehicle for business purposes. Even if you’re using a personal truck, once it’s being used commercially, you’ll need commercial coverage.
Tools and equipment insurance
What it covers:
Also known as equipment floater insurance, this policy covers the tools and machinery you use on the job, from power drills to post-hole diggers, against theft, loss, or damage, even when you're on the move
Why it's important:
Deck and fence work relies on expensive gear. If your tools are stolen from your truck overnight or damaged during transport, this coverage ensures you can replace them quickly and get back to work without interruption. Any item valued at less than $1,500 is considered a tool and anything valued above $1,500 is considered equipment.
Installation floater insurance
What it covers:
This protects building materials (like lumber, fencing panels, or custom parts) while they’re in transit or temporarily stored at a job site before being installed.
Why it's important:
Deck and fence materials can be pricey, especially for custom projects. If materials are damaged in a delivery accident or stolen before installation, you could be on the hook unless you have installation floater coverage.
Commercial property insurance
What it covers:
If you operate out of a workshop, office, or storage space, commercial property insurance typically protects your physical location and contents against fire, theft, vandalism, and severe weather.
Why it's important:
Even if your business is mobile, any permanent base of operations such as a warehouse where you store fencing materials or company records should be protected with property insurance.
Insurance considerations based on business size
The type and amount of insurance you need as a deck and fence contractor can vary depending on your business structure:
- Sole proprietors might only need basic CGL and tools coverage, especially if they work alone and subcontract additional help.
- Small-to-medium businesses with employees will need workers' compensation and possibly higher liability limits.
- Larger contractors may need multiple policies, fleet coverage for several vehicles, and extended liability for bigger or more complex projects.
If you’re bidding on commercial contracts or working with municipalities, you may also be required to show proof of specific coverages and limits as part of your contract.
What impacts the cost of insurance?
Premiums for deck and fence business insurance are influenced by several factors:
- Business size and annual revenue
- Number of employees
- Type of services offered (deck building vs. high-security fencing)
- Location and operating area
- Claims history
- Value of tools, equipment, and vehicles
Final thoughts
Insurance isn’t just another business expense because it’s an investment in your company’s stability and reputation. It’s also protects you against legal claims. Make sure your deck and fence business is properly protected with liability insurance and any other insurance coverages needed.
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