As the owner of a small carpentry business your days are busy. You may spend most of your time going from one jobsite to another to make sure everything is going smoothly. Whether you primarily work with corporate customers or residential clients, there are many details you must keep track of for each project. Make sure your business is fully protected with the right types of commercial insurance for your particular business style.
General Liability Insurance
All independent carpenters and small carpentry companies should carry general liability insurance. This coverage helps protects you from unexpected events, problems and potential hazards. If you work from a carpentry shop that customers visit, general liability protects you if someone gets hurt while they’re there. It also protects you if the customer’s property is damaged on your premises. It protects you from losses that might arise due to natural disasters, product liability and advertising liability as well. This is a solid, all around insurance plan for small businesses that grows with your needs.
Business Owners Policy
A business owners policy (BOP) includes general liability and expands to cover business property as well. This insurance plan can be tailored to meet the specific needs of your carpentry company.
- Equipment Breakdown – Whether you work from a stationary location or you go to each individual job, when your equipment breaks down it can be costly. Repairing or replacing the equipment may not be in the budget, and you can lose income if machines aren’t working as well. A BOP protects you from these types of failures by covering the costs of repairing or replacing your professional work equipment.
- Buildings and Contents – When you work from a shop you rely on having the building available and fully functional so that your business can operate. You also may have important physical assets inside such as office furniture and workshop machines. A BOP can take care of the costs that come up when your buildings and their contents are damaged or destroyed, such as from a natural disaster.
- Business Income and Extra Expense – If your business structures or content are destroyed you can lose a lot of income due to not being able to perform your work. A BOP can provide for lost business income or help you with the added expenses of renting temporary work spaces and machines.
- Products and Completed Operations (Included in General Liability) – As a carpenter there may be times when you complete a job but it comes back with problems at a later date. If this happens, a BOP can be there to help.
- Electronic Data – A BOP helps cover the expenses involved with recovering lost electronic data files that are critical to the operation of your business.
- Newly Acquired or Constructed Buildings – As your business grows you may decide to add more workshop space or an area to display work to potential customers.
- Valuable Papers Protection – If you keep valuable papers in your office, such as original blueprints or contracts, a BOP can protect you if those are damaged or destroyed.
- Employee Dishonesty Coverage – Employee theft or dishonest practices is an unfortunate fact of business. Your BOP policy can protect you from losses caused by unauthorized credit card uses or funds transfers and tangible property theft among other things.
Commercial Auto Insurance
Business auto insurance protects your company if there is an accident. It can cover vehicles used for business purposes even if they are not company vehicles.
workers comp Insurance
Workers comp insurance is required by law when you have employees. It protects you and them from having to pay for medical care and expenses if they are hurt on the job.
Surety bonds act as guarantees that you can fulfill a contract. You may be required to be bonded before you can win a government or large corporate carpentry contract.