You've got the skills, the tools, and your first few flooring jobs lined up. But here's the thing that catches most new flooring installers off guard: you can't actually start working until you have the right insurance in place. Not because the law necessarily requires it (though sometimes it does), but because clients and general contractors simply won't hire you without proof of coverage. A Certificate of Insurance isn't just a nice-to-have—it's your ticket to landing jobs.
The good news? Insurance for flooring installers is more affordable than you might think. The challenge is knowing exactly what you need on day one versus what can wait until you grow. Let's walk through the insurance checklist for starting your flooring installation business, so you can protect yourself without overspending.
Day One Coverage: What You Need Before Your First Job
Before you install your first square foot of laminate or tile, you need general liability insurance. This is the non-negotiable foundation of your insurance program. General liability protects you when someone gets hurt on a job site or when you accidentally damage a client's property. Think about it: you're working in people's homes and businesses, moving furniture, operating heavy equipment, and installing materials that could cause trips and falls if something goes wrong.
As of 2026, flooring installers pay an average of $63 per month for general liability coverage with $1 million per occurrence and $2 million aggregate limits. Some installers can find basic policies for as low as $39 per month. That's less than a tank of gas, and it covers potentially catastrophic financial losses. If you scratch a client's hardwood staircase while moving materials, or if a homeowner trips over your tools and breaks their wrist, your general liability policy handles the medical bills and legal fees.
If you're starting as a solo installer with no employees, you can likely skip workers' compensation insurance initially. But the moment you hire your first helper—even if it's just your cousin helping out on weekends—you need workers' comp in most states. The stakes are high here: flooring installation involves kneeling, lifting heavy materials, operating power tools, and working with adhesives. Injuries happen. Without workers' comp, you could face lawsuit settlements averaging over $50,000, and in many states, you could lose your contractor's license for non-compliance.
When to Add More Coverage: Growth Triggers
Your insurance needs will evolve as your flooring business grows. Here are the specific moments when you need to add coverage:
When you buy a work truck or van: The day you purchase a vehicle for your business, you need commercial auto insurance. Your personal auto policy won't cover accidents that happen while you're hauling flooring materials or driving to job sites. Commercial auto covers vehicle damage, liability, and medical payments if you're in an accident while working.
When you accumulate expensive tools: A basic general liability policy doesn't fully protect your tools and equipment when they're off-site or in transit. Once you've invested several thousand dollars in table saws, nail guns, flooring nailers, and other specialized equipment, you need tools and equipment insurance (also called an installation floater). This coverage averages just $14 per month and protects your tools whether they're stolen from your truck, damaged on a job site, or lost in transit.
When you lease office or warehouse space: If you rent space to store inventory or run your business operations, you need commercial property insurance. This protects your building contents, inventory, and equipment at your business location. Many flooring installers bundle this with general liability in a Business Owner's Policy (BOP), which costs an average of $109 per month—less than buying the coverages separately.
When you start doing complex commercial projects: Installing flooring in a residential home is one thing. Installing specialized commercial flooring in a medical facility or corporate office is another level of exposure. For high-value commercial work, consider professional liability insurance (also called errors and omissions or E&O). This protects you if a client claims you made a mistake in your installation, used the wrong materials, or failed to meet contract specifications. If you mistakenly install the wrong type of flooring in a commercial building, E&O insurance covers the cost to redo the work and any related legal expenses.
Common Mistakes New Flooring Installers Make
The biggest mistake? Assuming you don't need insurance until something goes wrong. By then, it's too late. Insurance doesn't work retroactively—you can't buy a policy after you've already been sued or caused damage. And here's the reality: many general contractors and homebuilders won't even let you bid on projects without proof of insurance. You're leaving money on the table every day you operate without coverage.
Another common mistake is buying the cheapest policy without understanding what's actually covered. Not all general liability policies are created equal. Some exclude certain types of flooring work or have low coverage limits that won't adequately protect you on larger jobs. Read your policy carefully, and make sure your coverage limits match the size of projects you're taking on. If you're working on a $100,000 commercial flooring job, a $500,000 liability policy might not be enough.
New installers also frequently forget to update their insurance as their business grows. You hired two employees six months ago but never added workers' comp? That's a compliance violation that could result in fines and penalties. You bought a $40,000 cargo van but never added it to your commercial auto policy? You're driving uninsured. Set a reminder to review your insurance annually and whenever you make major business changes.
Getting Started: Your Action Plan
Start by getting quotes for general liability insurance from at least three different insurers. The pricing can vary significantly, and you want to compare not just the premium but also the coverage details, deductibles, and policy exclusions. Many insurance companies specialize in contractor coverage and understand the specific risks flooring installers face.
If you have employees or plan to hire within the next few months, get workers' compensation quotes at the same time. Workers' comp for flooring businesses averages around $193 per month, but this varies widely by state and your claims history. Some insurers will give you a discount if you bundle workers' comp with your general liability coverage.
Once you have coverage in place, request Certificates of Insurance from your insurer. Keep digital and physical copies handy, because you'll need to provide them regularly when bidding on jobs or working with general contractors. Most clients want to see proof of at least $1 million in general liability coverage, and commercial clients often require $2 million or more.
Starting a flooring installation business requires careful planning, and insurance is a critical piece of that foundation. The right coverage protects your business from financial catastrophe, helps you win more jobs, and gives you peace of mind to focus on what you do best—delivering quality flooring installations. Don't wait until you need it. Get covered before you start working, and adjust your coverage as your business grows.
