New York Drywall Contractor Insurance

General Liability Insurance

The foundation of your insurance program. General liability covers claims of bodily injury or property damage arising from your business operations. For drywall contractors, this includes damage or injuries occurring while you are actively working on a jobsite—such as drywall dust damaging a customer's belongings, debris injuring another tradesperson on site, or accidentally damaging existing finishes, flooring, or fixtures during installation.

Standard limits are typically $1,000,000 per occurrence / $2,000,000 aggregate, though contracts may require higher limits.

Products & Completed Operations

One of the most critical coverages for drywall contractors. Completed operations covers claims that arise from work you have already finished and turned over to the customer. If drywall you installed develops problems months later—such as seams separating, nail pops causing damage, or moisture infiltration through improperly sealed joints—completed operations coverage may respond to the resulting damage claim.

Important: The coverage typically pays for resulting damage but not the cost of redoing the defective work itself.

Workers' Compensation

Mandatory in New York for virtually all businesses with employees. Workers' comp covers medical expenses and lost wages for employees injured on the job. Drywall work involves significant injury risks including falls from stilts and scaffolding, repetitive motion injuries from overhead taping and finishing, back and shoulder strains from lifting heavy sheets, and respiratory issues from sanding dust.

Drywall contractors are typically classified under workers' comp codes such as 5445 (wallboard installation) or 5020 (ceiling installation), with rates reflecting the physical demands of the trade. Learn more about NY Workers' Comp

Commercial Auto Insurance

If you use vehicles for your drywall business—whether work vans, trucks hauling materials, or personal vehicles used for business purposes—you need commercial auto coverage. This covers liability for accidents as well as physical damage to your vehicles. Personal auto policies typically exclude vehicles used for business purposes, especially those carrying heavy loads of sheetrock and equipment.

Inland Marine / Tools & Equipment

Your drywall lifts, stilts, sanding equipment, screw guns, routers, and other specialized tools are essential to your livelihood. Inland marine insurance covers these items against theft, damage, and loss—whether stored at your shop, in your vehicle, or on the jobsite. Standard property policies may not cover tools and equipment used at various locations away from your premises.

Commercial Umbrella / Excess Liability

Provides additional liability limits above your general liability, auto, and employers liability policies. Given the potential severity of fall-related claims under New York's Scaffold Law and the possibility of significant property damage from defective installations, many drywall contractors carry $1 million to $5 million in umbrella coverage. Some general contractors require minimum umbrella limits as a condition of subcontracting.

Working at Heights

Drywall installers and finishers regularly work on stilts, scaffolding, and ladders to reach ceilings and upper walls. These height exposures are a primary driver of workers' compensation claims in the drywall trade and are directly impacted by New York's Scaffold Law, which imposes strict liability for gravity-related injuries.

Silica Dust Exposure

Sanding drywall joint compound generates fine dust that may contain crystalline silica, a known health hazard. OSHA's silica standard requires employers to limit worker exposure and provide respiratory protection. Long-term exposure may lead to silicosis and other respiratory conditions, which can result in workers' compensation claims or potential occupational disease liability.

Repetitive Motion Injuries

The physical demands of drywall work—overhead taping, extended reaching, heavy lifting of 4x8 or 4x12 sheets, and repetitive sanding motions—can lead to chronic shoulder, back, neck, and wrist injuries. These repetitive motion claims can be costly and are covered under workers' compensation.

Fire Rating and Code Compliance

Drywall installations often serve as fire barriers and are rated for fire resistance. Improper installation that compromises a fire rating could lead to significant liability if a fire occurs. Ensuring proper installation techniques and documentation helps protect against these claims and demonstrates compliance with building codes.

Type of Drywall Work

Residential and commercial drywall work carry different risk profiles. Large commercial projects with high ceilings and extensive scaffold work typically involve higher premiums than residential renovations. Specialty work like fire-rated assemblies, soundproofing installations, or exterior sheathing may also affect your classification and rates.

Revenue and Payroll

General liability premiums are typically based on your annual revenue, while workers' compensation is based on payroll. Higher revenue and larger payrolls mean higher premiums, but they also reflect a larger operation with more exposure.

Claims History

Your loss history significantly impacts your premiums. Frequent claims or large losses will result in higher rates or difficulty finding coverage. Maintaining a clean claims record through strong safety practices—particularly around stilt and scaffold safety—is one of the most effective ways to control insurance costs.

Number of Employees and Subcontractors

More employees means higher workers' compensation premiums. If you hire subcontractors, insurers will evaluate how you manage their insurance requirements. Requiring certificates of insurance and additional insured endorsements from all subcontractors demonstrates good risk management.