Is Owning a Flooring Contractor Business Profitable?

Nate Jones, CPCU, ARM, CLCS, AU
Sep 10
3 min read

If you're considering starting a flooring contractor business, one of the first questions you’ll ask is: Is it profitable? The short answer is yes—but profitability depends on your service offerings, operational efficiency, market demand, and how well you manage challenges.

At Wexford Insurance, we specialize in helping flooring contractors protect their businesses with tailored flooring contractor insurance. Whether you install hardwood, epoxy, luxury vinyl plank, tile & stone, carpet, granite, or offer floor polishing services, we work with insurance carriers who understand your trade and offer coverage that supports your growth.

How Profitable Is a Flooring Contractor Business?

The U.S. flooring industry was valued at $28.5 billion in 2023 and is projected to reach $37.7 billion by 2028, making it a strong opportunity for entrepreneurs.

Average profit margins range from 5% to 15%, with higher margins achievable through premium and eco-friendly offerings
Flooring contractors with diversified services and strategic partnerships often enjoy more resilient revenue streams.
Businesses offering custom flooring solutions or sustainable materials can command premium pricing and repeat business.

Common Challenges Flooring Contractors Face

While the potential for profit is strong, flooring contractors must navigate several challenges:

1. Labor Shortages

Finding and retaining skilled installers is a top concern. Training and development are essential to maintain quality and scalability.

2. Fluctuating Material Costs

Prices for hardwood, vinyl, and eco-friendly materials can vary significantly, impacting profit margins.

3. Cash Flow Management

Seasonal dips and delayed payments can strain operations. Strategic planning and insurance can help mitigate risks.

4. Customer Expectations

Managing timelines, quality standards, and communication is critical to maintaining reputation and securing repeat business.

5. Marketing and Lead Generation

Standing out in a competitive market requires consistent branding, SEO, and referral networks.

Enhance Your Marketing Services With contractor Back Office

Contractor Back Office helps flooring contractor businesses establish a professional brand by managing websites & SEO email & calendar management, and social media platforms. These services make it easier to showcase your past projects, share customer testimonials, and connect with potential clients online—boosting your credibility and helping you win more jobs.

Growth Opportunities in the Flooring Industry

Despite challenges, flooring contractors have many paths to scale profitably:

Offer virtual consultations to expand reach and convenience
Build referral networks with designers, builders, and real estate agents
Showcase completed projects with before-and-after visuals
Embrace eco-friendly flooring to attract sustainability-focused clients
Package services for different budgets and styles

Insurance Coverage for Flooring Contractors

To protect your profits and meet client requirements, flooring contractors should carry:

General Liability Insurance – Covers property damage and injury claims
Workers’ Compensation Insurance – Required if you have employees
Commercial Auto Insurance – Covers vehicles used for transporting tools and materials
Tools & Equipment Coverage – Protects your gear on and off job sites
Commercial Property Insurance – Covers your office, warehouse, or showroom

At Wexford Insurance, we work with flooring contractors across specialties—from hardwood and epoxy to carpet, tile, and luxury vinyl plank—to provide insurance that fits your business. Our niche focus in contractor insurance means we understand your risks and help you stay protected while growing profitably.

Final Thoughts

Owning a flooring contractor business can be highly profitable—especially if you specialize, manage costs, and market effectively. With the right strategy and insurance coverage, you can build a resilient business that thrives in both residential and commercial markets.

Ready to start your flooring business?

Contact Wexford Insurance. We’re here to help you protect what matters most.