Even the smallest spark can ignite a fire that could devastate an entire family’s home or business causing untold emotional and monetary damage. In fact, in every part of the U.S. fire sprinklers are required for commercial buildings by law. That’s why installing and making sure fire sprinklers work is so critical to businesses today.

Yet in rare cases, even the best fire sprinkler system could fail to stop or prevent a fire. In that case, you need to carry fire sprinkler insurance. So, if you design, manufacture, or install fire sprinkler systems, then you also need to carry enough insurance to cover your business in the case of a failure.

How much does fire sprinkler insurance cost?

Price ranges vary depending on location, size of your operation, experience in the industry, how many employees you have, and more. With that said, a common coverage option seen at insurance solutions of America is $1,000,000 to $2,000,000 in general liability coverage. Why that much coverage? Even a small kitchen fire in a commercial building can quickly cause in excess of $500,000 or more in damage. Therefore, it is best to cover yourself in the event of a fire sprinkler failing.

What types of other insurance do fire sprinkler contractors need?

Aside from general liability, you will also want to consider several other insurance types as well. Professional liability is important in the event that an error was discovered in your work. For example, if your crew did not install a sprinkler correctly then your business could be held liable. You will also want to carry workers’ auto insurance for any fleet vehicles your employees drive as well as worker compensation insurance for any work-related injuries or claims that may result from the worksite.