Insurance for Woodworkers

Woodworking comes with unique risks—whether it’s accidental damage, injuries, or equipment failure. That’s where business insurance comes into play. Let's break down the essentials of business insurance for woodworkers, how it shields your operation, and why you’ll want to have it in your toolkit.

General Liability

Property Coverage

Workers Compensation

Commercial Auto

Types of Business Insurance for Woodworkers

General Liability Insurance (GL)

This is the foundational coverage that every woodworker should have. General Liability insurance protects your business if you accidentally cause damage to someone’s property or if a customer is injured on your premises. It can also cover legal fees if you get sued.

Coverages:

Each Occurrence: This is the amount your policy will pay per incident, typically starting around $1 million.
Damage to Rented Premises: If you rent a workshop and accidentally cause damage, this covers the repair costs.
Medical Expenses: Covers minor injuries like cuts or burns that happen to clients while on your property.
Personal and Advertising Injury: If someone sues you for libel or slander, this protection steps in.
General Aggregate: The maximum your policy will pay during a policy period, usually set around $2 million.
Products/Completed Operations: Covers liability for damage or injuries caused by your completed woodworking projects.

Business Owner's Policy (BOP)

A Business Owner’s Policy is perfect for woodworkers who want to bundle their coverage. It combines General Liability with Property Insurance, protecting both your business and the place where you work.

Coverages:

General Liability: Same as listed above.
Business Property Insurance: Covers damage to your workshop, tools, and materials from events like fire or theft.

Claim Example: A fire breaks out in your workshop, damaging your high-end saws and raw wood inventory. With a BOP in place, the property coverage kicks in to replace what was lost, and you can quickly get back to fulfilling client orders.

Workers' Compensation

If you have employees, you’ll need Workers’ Compensation Insurance. This protects your business by covering medical costs and lost wages if an employee is injured on the job.

Claim Example: An apprentice is using a table saw and injures their hand. Workers' compensation would cover the medical bills and any wages lost while they recover.

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Tools and Equipment Coverage

Woodworking tools and machinery aren’t cheap, and they’re the backbone of your business. Tools and Equipment Insurance covers repairs or replacement if they’re damaged, lost, or stolen.

Claim Example: Your portable band saw is stolen from a job site. Tools and Equipment Insurance would cover the cost of a replacement, ensuring you don’t lose time or money.

Why Having Insurance Can Help Your Business Grow

Woodworkers with business insurance not only look more professional, but they also have an edge when it comes to securing larger contracts. In fact, nearly 50% of clients are more likely to choose a contractor with proper insurance. Plus, insured businesses have a higher chance of landing profitable gigs because many high-end projects require proof of insurance. It’s not just about protection—it’s about opening the door to bigger, better opportunities.

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Woodworker Insurance Costs

Woodworker Business Insurance FAQs

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

Why Do Woodworkers Need Insurance?

You worked hard to build a successful woodworking business. However, even though you put protective measures you put in place, accidents can happen. Those accidents can put your business at financial risk. Just the cost of defending yourself from a lawsuit can be more than some businesses can handle.

In addition, protecting your customers and employees is just good business. Sometimes, business owners simply need business insurance in order to compete for projects. The bottom line is that woodworker business insurance protects your business from the unknown so you can continue to grow and serve your customers.

What are the Risks Facing Woodworkers?

Woodworkers face the risk of injury to employees, customers, and business property. In addition, the risk of legal liability from any of these can be significant. Woodworkers face exposure to machinery and processes that can lead them to heightened risk. Because projects may be completed either in shop or at remote locations, transportation risk provides another issue of the unknown regarding potential losses.

The greatest risk to woodworkers is the risk of facing an accidental loss without proper insurance coverage.

Is Business Insurance Required for Woodworkers?

Woodworker Insurance requirements can vary by state and even by project. While some types of insurance may be required, others are not. The important consideration is not whether insurance is required for your woodworking business, but does it make good financial sense?

Waiting until an uninsured loss happens could immediately put your business at financial risk. It could also affect the future cost and eligibility risk for insurance coverage.

However, when you do have required coverage needs for your business, having a trusted insurance advisor who understands those requirements can make doing business easier. When that advisor can also meet those requirements with the least amount of trouble to you, your business also becomes stronger.

Are Monthly Payments Available For Woodworkers Insurance ?

Most woodworker insurance policies come with monthly payment plans. Usually a down payment is required to start a policy. Please ask your agent about a low down payment option.

What Are The Penalties To Cancel My Policy ?

We don’t penalize our customer. When you cancel your General Liability Insurance, you are not required to pay additional fees or penalties. You are however required to pay your premium dues up to the cancellation date. The remaining payments will be cancelled after a cancellation is processed.