PAINTERS
Category: Casual and Artisan Contractors

SIC CODE: 1721 Painting and Paper Hanging

NAICS CODE 238320 Painting and Wall Covering Contractors
237310 Highway, Street and Bridge Construction

Suggested ISO General Liability Codes: 98303, 98304, 98305, 98306, 98307, 98308, 98309

Suggested Workers Compensation Codes: 5037, 6874F, 9501, 5474

Description of operations: Painting contractors do interior and exterior painting of residential or commercial buildings or other structures, such as ships or bridges, street or parking lot striping, and signs. Equipment and supplies may include paints, stains, enamels, varnishes, or special soundproof or waterproof substances. Painters may work on new construction, in connection with ongoing maintenance, or during renovation. Typically, the work involves surface preparation (including removal of old wall coverings), cleaning the surface to be painted, application of the paint, and cleanup. The removal and disposal of lead-based paints from older buildings and structures presents a lead contamination exposure affecting general liability, environmental liability, and workers compensation.

Property exposures at the contractor's own location are generally limited to an office and storage for supplies, tools and vehicles. If there are shop operations, fire or explosion can result from the flammability of paints, varnishes and thinners or the use of dip tanks and/or spray booths. Spray booths should have explosion resistant lighting and be separated from combustibles. Poor housekeeping or improper storage or labeling of flammable, hazardous, or reactive substances significantly increases the potential for fire or explosion.

Paints can be targeted by thieves. Appropriate security controls should be taken including an alarm system that reports directly to a central station or the police department.

Inland marine exposures include accounts receivable if the painter offers credit to customers, contractors’ equipment and tools, goods in transit, installation floater, and valuable papers and records for customers' and suppliers' information. There may be computers used to monitor inventory. Backup copies of all data should be stored off premises. The equipment may be limited to brushes, rollers and other hand tools, or there may be sprayers, ladders, scaffolding, cherry pickers, and similar equipment. Contractors may lease, rent or borrow equipment, or may lease out, rent or loan their owned equipment to others, which poses additional risk as the operator may be unfamiliar with operation of the borrowed item. The transport of barrels of paint and other materials and equipment can be difficult, requiring expertise in loading to prevent load shift or overturn. During installation, the materials are subject to loss or damage by fire, theft, contamination, damage by employees of other contractors, vandalism, and weather-related perils.

Crime exposures are from employee dishonesty, including theft of customers' goods by the insured's employee. Background checks, including criminal history, should be performed on all employees handling money. There must be a separation of duties between persons handling deposits and disbursements and reconciling bank statements.

Premises liability exposures at the contractor's office are generally limited due to lack of public access. If there is a storage yard or shop operation, a fire can spread to neighboring businesses or homes. Controls in waste handling and fire control are important. Outdoor storage may create vandalism and attractive nuisance hazards. Off-site exposures are extensive due to hazards at job sites which can result in bodily injury to members of the household, the public, or employees of other contractors, or damage to their property or completed work. The area of operation should be restricted by barriers and proper signage to protect the public from slips and falls over equipment, power cords, and supplies and from falling items while painting. If there is work at heights, falling tools or supplies may cause bodily injury or property damage. Removal of old paint or wall coverings may involve scraping, chemical applications, or sandblasting which can damage other property of the client. The job may require the removal of old lead-based paint. Over spray during exterior painting may damage surrounding premises, vehicles, or structures. All exterior spray painting or sandblasting operations need to be handled with great care. When interior work is done in buildings, ships, tanks, or other structures, ventilation is vital for the safety of clients, passersby, and the contractor's workers since fumes can cause severe bodily injury.

Personal injury exposures include allegations of assault to the customers' employees, discrimination, and invasion of privacy. Failure to run background checks and review references on employees increases hazard and reduces available defenses.

Environmental impairment liability exposures are high due to the application or removal, transport, and disposal of paints, solvents, varnishes, and other chemicals. Although the application of lead paint is now a controlled substance, it is still available and approved for specific commercial and industrial applications. The chips and dust generated during surface preparation present a very high exposure because ingested lead is associated with severe neurological and developmental disorders, especially in young children. Transportation and disposal procedures must adhere to all EPA and other regulatory standards. Proper written procedures and documentation of all processes is important. Training and supervision of employees are critical.

Automobile exposures are generally limited to transporting workers, equipment, and paints and other materials to and from job sites. Drivers must have valid licenses. MVRs must be run on a regular basis. Random drug and alcohol testing should be conducted. Vehicles must be well maintained with records kept in a central location. Hazards of transport include upsets or spills while hauling heavy containers of paint. Proper tie-down procedures are essential. Vehicles may have special modifications or built-in equipment such as lifts and hoists.

Workers compensation exposures vary based on the size and nature of the job. Caustics, paints and thinners generate fumes that can result in irritation to the eye, nose, throat, skin and lungs. Workers may be exposed to dust and chips containing lead. Back injury, hernia, sprains and strains can result from lifting or working from awkward positions. The use of power tools can result in cuts and burns. Casual labor and high turnover may be a problem, especially in the prep and cleanup work. When work is done on ladders and scaffolds, there is a potential for injury from falling, being struck by falling objects, or adverse weather conditions. Work at floor level for extended periods of time can result in permanent damage to knees. Other potential injuries include slips and falls, foreign objects in the eye, hearing impairment from noise, and automobile accidents during transportation to and from job sites. The absence of good maintenance of scaffolds, proper use of basic safety equipment, such as properly installed guards, steel-toed shoes, and eye protection, and strict enforcement of safety practices may indicate a morale hazard. The removal of old paint presents a serious exposure. Lack of a procedure to determine if the paint to be removed is lead based, or lack of procedures for safe clean-up and disposal of chips and the solvents used to remove lead, adds significantly to the loss potential.

Minimum recommended coverage:

Business Personal Property, Accounts Receivable, Contractors’ Equipment and Tools, Goods in Transit, Valuable Papers and Records, Employee Dishonesty, General Liability, Employee Benefits Liability, Umbrella Liability, Automobile Liability and Physical Damage, Hired and Nonownership Auto, Workers Compensation

Other coverages to consider:

Building, Business Income with Extra Expense, Earthquake, Equipment Breakdown, Flood, Leasehold Interest, Real Property Legal Liability, Computers, Installation Floater, Cyberliability, Employment-related Practices, Environmental Impairment Liability, Stop Gap Liability