If you have a passion for home remodeling, floor installation is a lucrative industry. From laminate to wood or tile, the options are endless for homeowners wanting to rejuvenate their favorite rooms. However, getting started in the flooring business takes more than a work truck, measuring tape, and being good with measurements.

Before printing out your business cards and promoting your new company, make sure you understand what it takes to launch successfully.

Checklist For Starting A Flooring Business

Flooring Business

One of the most significant advantages of owning a floor installation business is that you get to call all the shots on how to manage your new company. However, with this empowerment also comes significant decision-making and risks. So, during the initial process of forming your enterprise, make sure to address these critical aspects of running a flooring business:

Business Planning

One of the most important first steps you can take is to develop a business plan. This document will serve as a guide to help you achieve your goals as a flooring company owner. It will also layout investment plans and outline growth strategies. These elements are crucial to the long-term success you want to create.

It would be best if you also determined early on which marketing channels you want to leverage. For example, will you send out print advertisements? Emails and newsletters? A combination of both plus social media? Knowing how you will reach your market audience is necessary, so money spent on advertising has a maximized benefit.

Industry Training

For many flooring technicians, most of their experience happens from on-the-job training. However, if you plan to have employees, you should consider providing formal instruction in a workshop or other career development course. There, they can learn about the latest techniques, receive tool training, learn the basics of measurement, and how to create quotes.

Customers will appreciate that your company employs highly-trained installation specialists, and the long-term savings on avoiding basic mistakes will benefit your bottom line.

Commercial Insurance Needs For Flooring Companies


Installing floors is a physically demanding job that comes with great satisfaction when a project completes. Still, this work can come with significant liabilities should something go wrong during an installation. Perhaps a customer trips and falls because of a work tool you left lying on the floor, or you installed the wrong color laminate. If sued, these mistakes and more can occur, costing you thousands in damages.

Are you a tiler who is worried about tile installer insurance costs? Look at what coverage benefits you’re getting for your premiums and weigh that expense against how much it would cost to settle out of pocket for the perils it covers. Many insurers offer bundled policies that make it more affordable to have several of the below coverage options for your business:

General Liability

This policy handles an extensive range of risks associated and protects against third-party claims and lawsuits against your company. For example, if an employee causes damage to a client’s wall during a flooring job, your insurance would pay for the repair cost.

Other costs this policy would help pay for:

  • Property damage
  • Medical payments
  • Legal fees and judgments

Contractor E&O

Also called professional liability insurance and errors & omissions insurance policy is necessary to defend against claims that a mistake you or an employee made caused the customer a financial loss. For example, this can happen when a contractor uses the wrong flooring material or installs one that has poor durability in the flooring industry. As a result, the client will have to pay for another floor installation sooner than expected, costing them thousands.

E&O coverage covers:

  • Professional negligence
  • Legal judgments
  • Legal defense costs

Commercial Auto

Commercial auto coverage is often mandatory for businesses with a fleet of vehicles. This ensures that any property damage or medical expenses stemming from an accident caused by an employee, for example, gets compensated. On the other hand, personal auto insurance rarely covers business-related collisions and won’t provide the same coverage as commercial policies.

Commercial Auto can help you pay for:

  • Collision repairs
  • Medical expenses
  • Rental reimbursement

Workers’ Compensation

Another business insurance you can expect to purchase is workers’ comp coverage. Most states require this if you have employees, though how many varies by jurisdiction. Regardless, this is crucial risk protection that you shouldn’t procrastinate buying. In addition, many of your customers will likely require you to have this coverage, and some local governments do too for business licensing.

Workers’ Compensation covers employee-related injury costs, including:

  • Medical expenses
  • Employer liability
  • Lost wages

Tools & Equipment


Floor installation companies rely heavily on having the best tools and equipment to get the job done. This insurance protects these assets no matter where you have them–on the job, in your work trucks, or at your facilities. It would help if you got this policy as an add-on to your general liability policy or as part of a larger business owner policy (BOP).

Tools and equipment coverage can help cover the cost of:

  • Company-owned equipment
  • Rented/leased/borrowed equipment
  • Employee tools and clothing

Commercial Property

Whether you own your office location or own the real estate where your equipment gets stored (your personal residence), protecting against both mother nature and human nature is essential. From theft to tornados, you can rest easy with commercial property insurance to safeguard your valuable equipment and other company assets, including your building:

Commercial property can protect against:

  • Damaged equipment and inventory
  • Lost income
  • Operating expenses

Business Registration And Licensing

With your business plan, training, and insurance coverage in place, now is a great time to make your new flooring business official! First, choose the best entity formation for your company, whether as a sole proprietor or LLC. Next, consider speaking with a knowledgeable tax lawyer about which is best for you, and then get the needed registration completed. Also, make sure you have all the necessary licensing to operate legally.

Many states have a small business association (SBA) division that can provide you with the necessary resources to complete this phase.

Final Thoughts

There is little doubt that the future for a flooring installation business is bright. As long as you prepare ahead for the challenges that inevitably arise now and then during your work, the long-term reward of this physically demanding job is worth it. You’ll be able to take pride in your completed projects and steer your new company to growth and success the way you see fit.

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