Carpenter’s Insurance

Carpenters are a risk class that definitely need to consider getting carpenter insurance. Being on the job means that you are working with many tools, and people on or near the job site might inadvertently get hurt by them.

When someone gets hurt, you’re likely liable for the medical costs. You’re left paying these costs out of your pocket if you don’t have insurance, which could lead to financial constraints, even bankruptcy. This is why carpenter insurance is so important; it transfers the financial risk to the insurance company.

Getting carpenter insurance might mean getting one of several different types of insurance. There isn’t one policy that is specifically called carpenter insurance. Instead, you may find that you need a combination of policies such as general liability, workers’ compensation, and commercial auto.

Below are the common types of policies that a carpenter may need to protect his business and his finances from claims.

General Liability Insurance For Carpenters

General liability insurance is likely the first policy recommended to you as a carpenter. It covers third-party accidents and incidents that result in someone getting hurt or having their property damaged. As a carpenter, you have an inherent risk with people are around your tools. For example, someone may trip over the corner of your sawhorse, falling and hitting their head. You’d be liable for their medical bills because it was your business operations that led to their injuries.

Even carpenters with the most stringent of safety standards can find themselves at the center of a general liability claim. Things can and do go wrong, and these claims can be tens of thousands of dollars. General liability insurance pays those claims.

Inland Marine

Inland marine is an essential carpenter insurance policy because it protects your tools and equipment while you move about town. As a carpenter, transporting tools, equipment, and supplies to new job sites is something that you do every day. Without these items, you can’t do your job. Inland marine specifically covers these items in transit.

For example, you load your truck up with tools for a job and stop at the hardware store to pick up nails. While at the hardware store, someone steals several tools from the back of your truck. Inland marine insurance covers this type of loss. You pay a small deductible, and the insurance pays the rest. Without it, you’d have to pay for the new tools out of your pocket.

Workers’ Compensation Insurance

In most states, any business with one or more employees must get workers’ compensation. It’s the law and you could face stiff penalties and fines without it – even if you only have a part-time or a temporary employee. For those who aren’t required to have it, you might still want to consider it because not only does it help you cover employee injuries, general contractors might require it to award you certain contracts.

Workers’ compensation insurance pays for the medical bills, lost wages, and rehabilitative costs associated with injuries to employees hurt while performing job duties. For example, you hire another carpenter to assist you with a job. He lifts some plywood and injures his back while doing so. His injury is your financial responsibility unless you have workers’ compensation insurance.

Commercial Auto Insurance

Most carpenters use their work truck as a mobile office that they work from. Getting the right insurance is important to protect the truck adequately. Some carpenters make the mistake of using personal auto insurance to insure their work trucks. This means insurance can deny a claim if the truck causes an accident while driven for work.

Vehicles used for work purposes should have commercial auto insurance. This insurance policy specifically classifies the work truck as a commercial vehicle. It provides the right protection for at-fault accidents and incidents that may lead to damage to the truck itself. For example, if you rear-end another car on your way to a job site, you are liable for the damages to the other vehicle and may need to have your own truck fixed as well. Your commercial auto insurance policy covers this.

Surety Bond

A carpenter may also need a surety bond, an insurance product that guarantees that the carpenter will maintain contractual obligations to clients. The way it works isn’t like traditional insurance products. You buy the surety bond for a nominal fee – bonds are usually much less expensive than insurance. If the client feels that you breached your contract, he can place a claim on the bond. If paid, the carpenter must repay the amount to the insurance company.

Some local counties might require a licensed carpenter to have a bond to maintain his licensing. The bond is also a good idea for carpenters because it helps them appear more professional to prospective clients, helping them land more contracts.

Excess Liability

Insurance policies come with policy limits. This isn’t unusual in any respect. While those limits are usually enough coverage, there are instances where it isn’t. A general liability policy might have limits starting at $100,000 going up to $1 million. You’ll need to get an excess liability insurance policy if you want higher limits.

Excess liability insurance serves as a second policy to a general liability policy. The general liability policy will pay up to policy limits during a claim, and then the excess liability policy will kick in. Excess liability allows you to get maximum protection for less money.

Carpenter Business Insurance Cost

Carpenter insurance costs do vary widely. Costs depend on:

  • The types of policy(ies) purchased
  • The amount of coverage needed
  • Your industry
  • Total annual revenues
  • Claims history

At the very least, carpenters should have a general liability policy. It is reasonable to expect a small general liability policy to have costs starting at $25 per month or $500 annually. If you want the most accurate pricing available, we recommend getting a free quote that considers your business specifics.

Carpenter Business Insurance FAQ

We’re big believers in keeping things simple, so ask us anything and we’ll answer honestly and without the jargon.

Why Do Carpenters Need Insurance?

Carpenters need insurance because they have a high amount of risk due to tools and equipment found on job sites. If someone gets hurt or a claim leads to property damage, the carpenter is responsible for the loss. If the loss is large enough, it could be a financial strain on the carpenter, even leading to bankruptcy.

What Are The Risks Facing Carpenters?

Tools and equipment are the top risks facing carpenters. Carpenters should employ safety practices on job sites, but even these can’t keep everyone safe in all circumstances. Some things are simply out of the carpenter’s control.

Is Insurance Required For Carpenters?

Having an insurance policy isn’t always required for carpenters. Certainly, those who have employees will likely need to get a workers’ compensation policy. But for the rest, unless your city requires general liability insurance for licensing purposes, insurance isn’t a requirement. However, keep in mind that insurance can help you qualify for larger contracts and gigs.

How To Get Carpenter Insurance

Getting carpenter insurance doesn’t need to be a big ordeal. In fact, with a quick conversation with an insurance agent, you should be able to define which policies you need and how much coverage you should get. Once the agent helps you define these parameters, you can get a quote for coverage.

Getting multiple quotes helps you determine where to get the best-priced policy for the necessary amount of coverage. Try different deductibles to save money. The higher your deductible, the lower your premiums will be. Just remember that you pay the deductible in a claim and don’t want it to be too high.

Are Monthly Payments Available For Carpenters ?

We offer easy monthly payment plans with most of the polices. Usually a down payment is required to start. Payment plans may include 9 or 10 monthly options depending on the qualifying business.

What Are The Penalties To Cancel My Insurance Policy ?

USA Business Insurance Services doesn’t penalize customers for policy cancellations. When you cancel your Insurance, you are not required to pay penalties.