A framing contractor installed floor joists at 24 inches on-center throughout the second floor of a custom home. Months later, after drywall, tile, and fixtures were installed, an engineer discovered the plans specified 16-inch spacing for the family room to support a heavy tile floor. The correction required demolishing finished work and reframing the entire area, leading to a shocking $127,000 claim. This single, hidden mistake could have bankrupted the business, but one specific type of coverage saved it: completed operations.
đź’ˇ Key Insight
Property damage coverage protects you when your work damages OTHER people's property—not the cost to fix your own framing work. This distinction is critical for framers.
This guide provides a comprehensive look at property damage coverage for framers. As a framer, you face unique risks that can lead to catastrophic financial losses. Your work is the skeleton of the building; a small error can compromise the entire structure.
Understanding Property Damage Coverage for Framers
đź“‹ Definition
Property damage coverage is a key component of general liability insurance that protects framing contractors when their work, tools, or materials cause physical damage to third-party property.
This includes client buildings, adjacent structures, vehicles, landscaping, and personal belongings.
6 Unique Risk Factors for Framing Contractors
⚠️ Why Framers Face Higher Property Damage Risk
- Structural Impact: Errors in joist spacing, headers, or shear walls can cost hundreds of thousands to fix
- Large Material Volumes: Dropping lumber can total vehicles, crush landscaping, or damage roofs
- Height Work: Second-story and roof work means falling materials threaten property below
- Weather Exposure: Open structures vulnerable to rainstorms that ruin engineered lumber
- Hidden Defects: Mistakes get covered by drywall - discovered months or years later
- Engineered Products: I-joists and LVL beams require precise installation
What Property Damage Coverage Includes
Damage to Client Property
âś“ Covered: Client Property Damage
- Accidentally punching a hole in existing wall while carrying a beam
- Ladder falling and breaking an expensive custom window
- Air compressor tipping over onto client's hardwood floors
- Framing errors causing roof leaks and water damage
Damage to Adjacent Properties
âś“ Covered: Neighboring Property Damage
- Lumber falls from second story onto neighbor's car - total loss
- Wind blows unsecured sheathing into adjacent house
- Waterproofing overspray damages neighbor's vehicles
Real Claim Example
A framer's crew was working on a second story when a bundle of 2x10s fell, landing on the homeowner's Mercedes parked in the driveway. The vehicle was a total loss. The property damage claim paid out $97,000 for the vehicle and associated legal fees.
Legal Defense Costs
đź’ˇ Most Valuable Benefit: Legal Defense
If sued for property damage, your insurer pays for:
- Attorney fees and legal representation
- Court costs, filing fees, expert witnesses
- Settlement negotiations
- Judgments up to policy limit
Defense costs are IN ADDITION to your policy limits. A $1M policy = $1M coverage PLUS defense funds.
What Property Damage Coverage Does NOT Include
| Exclusion | What It Means | What You Need Instead |
|---|---|---|
| Damage to Your Own Work | If you install joists at the wrong spacing and have to redo the work, the cost is not covered | Your own funds or workmanship warranty |
| Your Tools & Equipment | If your nail guns and saws are stolen from a job site, GL won't pay | Inland Marine Insurance |
| Employee Injuries | If a framer falls and breaks their leg, GL won't cover medical bills | Workers' Compensation |
| Auto Accidents | Damage caused while operating your work truck | Commercial Auto Insurance |
| Professional Errors | Design advice that proves wrong, causing structural failure | Professional Liability (E&O) |
| Weather Damage to Your Work | A rainstorm soaks your just-installed floor system | Builder's Risk Insurance |
Real Example: A framing contractor suffered $43,000 in water damage to open framing after a weekend storm. Because they only had general liability, the claim was NOT COVERED, and they had to pay for replacement out of pocket. Builder's Risk Insurance would have covered this loss.
Completed Operations Coverage for Framers
Completed operations coverage protects framing contractors from property damage claims that arise after your work is finished and you have left the job site. It's essential because structural issues often aren't discovered until months or years after completion.
Common Completed Operations Scenarios
Error discovered months later during flooring installation, requiring complete demolition and reframing
Single 2x12 installed instead of double 2x12, caught at final inspection six months later
Improperly installed shear walls cause cracking drywall and sticking doors a year later
| Coverage Type | When It Applies | Example |
|---|---|---|
| Premises & Operations | While you are actively working on-site | Your lumber falls and damages a car (immediate event) |
| Completed Operations | After your work is finished and accepted | A framing error is discovered months later, causing damage |
How Much Property Damage Coverage Do Framers Need?
Coverage Recommendations by Business Size
đź“‹ Coverage Limit Details
- Small Residential: $1M per occurrence / $2M aggregate - minimum GCs will accept
- Established: $2M per occurrence / $4M aggregate - for new home construction or light commercial
- Large Commercial: $2M/$4M PLUS $5M+ umbrella policy - for high-rises and complex structures
Cost of Property Damage Coverage for Framers
| Company Size | Annual Premium Range | Monthly Cost |
|---|---|---|
| Small Residential (1-3 employees, up to $500k revenue) | $5,000 - $12,000 | $415 - $1,000 |
| Established (5-15 employees, $1M-$3M revenue) | $15,000 - $40,000 | $1,250 - $3,330 |
| Large Commercial (20+ employees, $5M+ revenue) | $50,000 - $150,000+ | $4,165 - $12,500+ |
How to Reduce Your Insurance Costs
A documented safety program and low EMR earn long-term discounts
Purchase GL, Workers' Comp, and Commercial Auto together for 10-20% discount
Moving to $2,500-$5,000 deductible can lower your premium
Rates can vary by as much as 50% between carriers
Save 5-8% by avoiding monthly installment fees
Frequently Asked Questions
How much property damage coverage do framers need?
Most framing contractors need $1 million to $2 million in property damage coverage. Residential framers typically carry $1M per occurrence, while commercial framers often need $2M-$5M. Your requirements will vary by contract, project size, and state regulations, but $1M is the absolute professional minimum.
What does property damage coverage include for framers?
Property damage coverage for framers includes repair or replacement costs for damage to a client's building, vehicles, landscaping, or belongings caused by your work. It also covers damage to adjacent properties, fire or water damage you cause, and the legal defense costs if you are sued.
What does property damage coverage NOT include?
Property damage coverage for framers does NOT include damage to your own work (faulty workmanship), your own tools or equipment, employee injuries, auto accidents, intentional acts, or weather damage to your incomplete project. These risks require separate, specific insurance policies like builder's risk, workers' comp, and commercial auto.
What is the difference between general liability and builder's risk?
General liability insurance covers damage your work causes to other people's property (third-party liability). Builder's risk insurance covers damage to the project you are building from events like fire, theft, or weather (first-party property). You need GL for liability; the project owner or GC usually gets the builder's risk policy.
How much does framing contractor insurance cost?
Framing contractor general liability insurance typically costs between $5,000 and $40,000 per year. Small crews (1-3 employees) can expect to pay $5,000-$12,000 annually, while established companies (5-15 employees) pay $15,000-$40,000. Your final cost depends on revenue, payroll, claims history, and coverage limits.
What is completed operations coverage and why do I need it?
Completed operations coverage protects you from property damage claims that arise after your framing work is finished. It is essential for framers because structural defects are often hidden behind drywall and may not be discovered for months or years, long after you've been paid and left the site.
Conclusion: Protect Your Framing Business
Property damage coverage is essential protection for every framing contractor. Understanding what's covered—and equally important, what's excluded—can save your business from financial disaster.
đź“‹ Key Takeaways
- âś“ Carry at least $1M/$2M in coverage (preferably $2M/$4M for established companies)
- âś“ Ensure your policy includes completed operations coverage
- âś“ Understand exclusions and fill gaps with appropriate coverage (workers' comp, inland marine, commercial auto)
- âś“ Document your work with photos before it gets covered up
- âś“ Work with a construction insurance specialist to review coverage annually
Don't wait until a claim hits to discover your gaps. Get a comprehensive coverage review today and protect your framing business from property damage claims that could otherwise shut you down.