How to Start an Insulation Company

Insulation is a home necessity for any owner.
Insulation is a home necessity for any owner. (Image: pigeon image by david harding from

To ensure a home is energy efficient and well-protected from extreme temperatures, homeowners turn to insulation products to seal their home’s inner shell. Insulating a dwelling saves money on heating bills while keeping the home comfortable and safe. You can take advantage of this necessity by opening an insulation business. With a business license and a few materials, you can begin making money as an insulation supplier.

Things You'll Need

  • Business location
  • Contractor permit
  • Business license
  • Zoning permit
  • Liability insurance
  • Delivery vehicle
  • Foam sprayer
  • Sealant
  • Safety glasses/gloves
  • Dust mask
  • Power tools

Scout out a location to open your business. Pick a small building with some warehouse space where the insulation may be stored. Chances are customers will not be visiting your warehouse, so the need for an elaborate space is unneeded. Consider a location that will be comfortable within your budget. The warehouse should also be located near where the majority of your customers are located. Furthermore, ensure the location is in the proper zoning area for commercial businesses as deemed appropriate by your locality. Contact your county or City Clerk’s office for this information.

Acquire a contractor’s license to install and sell insulation. Your application needs to be sent to the state Board of Contractors. They will inform you upon approval of your application of what needs to be done next. You will also need to obtain a business license from your locality in order to operate a commercial business. The locality will also provide a sales tax permit and another other permits or licenses necessary for your business to operate.

Purchase an adequate amount of insurance for your insulation business. Ask about the necessary amount, around $500,000, from either an accountant or an insurance agent. Liability insurance ensures your customers the business is completely insured and bonded. Furthermore, it makes your business seem much more professional and responsible if there are any problems or accidents in any of your contracting jobs. Liability insurance also protects your warehouse from inventory loss.

Purchase the equipment needed to deliver and properly install insulation. Choose a distribution vehicle, such as a van or small box truck, to haul insulation. Aside from the vehicle and insulation material, a spray foam machine, safety eyeglasses and gloves, dust masks, power tools and sealants will also be needed. Choose a few different types of insulation from manufacturers in order to give your customers alternative options. Contact local insulation installers to see if you have all the necessary equipment needed to successfully operate an insulation business.

Start advertising with local newspapers and radio outlets in the contracting area. Visit the local Chamber of Commerce to establish your business as a certified insulation vendor. This will help expand business by making your services more widely known. Consider creating a website for customers to visit that outlines prices, services and insulation types.

Tips & Warnings

  • Contact the Internal Revenue Service to become familiar with all tax liabilities as a business owner.
  • Ensure insulation is properly disposed of in proper waste facilities. Contact landfill operators before dumping the material on site.

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