Cabinet Installer Insurance Policy Information
Cabinet Installer Insurance. Kitchens, bathrooms, garages, offices; cabinets are found in virtually every residential and commercial property. This built-in furniture provides vital storage space for things like dishes, cutlery, books, clothing, toiletries, medical supplies, documents, and so much more.
Because cabinets are such an important piece of furniture, as an cabinet installer, your services are in high demand. Though you make every attempt to ensure that everything goes as smoothly as possible with each and every job you do, you never know when the unexpected is going to arise. To protect yourself from the unexpected, you need to invest in the right type of cabinet installer insurance.
Interior carpenters perform remodeling, repair, finishing or refinishing. Interior carpentry consists of either rough or finish work. Cabinet installation is finish work involves making or installing cabinets, shelving or other built-ins.
Cabinet installer insurance protects your carpentry business from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked cabinet installer insurance questions:
- What Is Cabinet Installer Insurance?
- How Much Does Cabinet Installer Insurance Cost?
- Why Do Cabinet Installers Need Insurance?
- What Type Of Insurance Do Cabinet Installers Need?
- What Are Cabinet Installers Risks & Exposures?
- What Does Cabinet Installer Insurance Cover & Pay For?
What Is Cabinet Installer Insurance?
Cabinet installer insurance is a type of insurance coverage specifically designed for businesses that install or repair cabinets in residential or commercial properties. It provides protection against potential liabilities that may arise from the installation or repair of cabinets, such as property damage, bodily injury, and professional errors or omissions.
This type of insurance typically includes coverage for general liability, workers' compensation, and commercial property insurance. It may also include coverage for tools and equipment, as well as business interruption insurance in the event of a loss or damage that disrupts operations.
How Much Does Cabinet Installer Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small carpentry businesses ranges from $47 to $59 per month based on location, size, payroll, sales and experience.
Why Do Cabinet Installers Need Insurance?
Cabinet installers need insurance for a number of reasons. First and foremost, insurance protects against financial losses that can result from accidents or injuries that occur on the job. If a cabinet installer is injured on the job, medical expenses can quickly add up. Insurance can cover these expenses, ensuring that the cabinet installer is not left with a significant financial burden.
Additionally, insurance can protect against property damage. If a cabinet installer accidentally damages someone else's property while working, insurance can cover the costs of repairing or replacing that property. This can be especially important for cabinet installers who work in residential homes, as the costs of repairing or replacing damaged items can be significant.
Finally, cabinet installer insurance can protect against legal liabilities. If a cabinet installer is sued for some reason related to their work, insurance can provide financial protection and legal representation. This can be especially important in the event of a serious accident or injury that occurs on the job.
Overall, cabinet installers need insurance to protect themselves, their clients, and their businesses. Without insurance, cabinet installers may be at risk for financial loss, legal liabilities, and other unexpected expenses.
By securing the right insurance coverage, cabinet installers can ensure that they are protected against these potential risks and can focus on their work with confidence.
What Type Of Insurance Do Cabinet Installers Need?
There are several types of cabinet installer insurance carpenters should carry; however, the exact type you'll need depends on the specifics of your operation. For example, the size of your business and where you are located will affect what coverage you need. However, there are certain types of commercial policies that all cabinet installers should have in place, regardless of the specifics of their business. Examples of must-have coverages include:
- Commercial General Liability - No matter where you're located, you'll should carry commercial general liability insurance. This type of coverage safeguards you from third-party injury and property damage liability claims. For instance, should a client sue you, claiming that you or a member of your team damaged their property, commercial general liability would cover litigation expenses, as well as any damages you may be required to pay.
- Commercial Property - To protect your commercial space, you'll need this type of coverage. It protects the physical structure of your warehouse, shop, or office, as well as surrounding structures and the contents inside from things like fire, theft, and vandalism. Your policy will cover the cost of any necessary repairs or replacements if your commercial space or contents are damaged.
- Workers' Compensation - If you employ a staff, you'll also have to invest in worker' compensation insurance. This coverage is designed to protect employees from work-related injuries and illnesses. For example, if a worker sustains an injury while installing cabinet at a client's location, that would be considered work-related injury and you would be responsible for paying any associated medical bills. You would also have to cover any wages the employee might lose while recovering. Workers' compensation covers these expenses for you.
- Commercial Auto - If a work van or truck is involved in an accident while delivering cabinets to a job site, your personal auto insurance wouldn't cover the damages. For that, you'll need business auto insurance. This policy assists with paying for any repairs that your vehicle or other vehicles involved in an accident with a commercial car, truck, or van sustain.
What Are Cabinet Installers Risks & Exposures
Property exposures at the cabinet installer's own location are usually limited to an office and storage of materials, equipment, and vehicles. If the cabinet installer does shop woodworking, fire can result from the flammability of wood, paints, varnishes, and wood dust. There should be adequate ventilation and a dust collection system.
Flammable varnishes and glues should be properly labeled, separated, and stored away from combustibles. Some carpenters store lumber in their yards, increasing the potential for fire loss. Three-sided storage structures are highly susceptible to wind damage.
Premises liability exposures at the cabinet installer's shop or office are generally limited due to lack of public access. Fires or fumes from woodworking and/or lumber storage operations can spread to neighboring businesses or homes. Outdoor storage may create vandalism and attractive nuisance hazards. Off-site exposures are extensive. Jobsite operations include the potential for bodily injury to the public or employees of other contractors, or damage to their property or completed work.
Tools, power cords, building materials and scrap all pose trip hazards even when not in use. The use of saws and other power or hand tools is inherently hazardous due to sharp edges and moving parts. In enclosed buildings, the buildup of dust and scraps can result in catastrophic fire and explosion. Disposal of waste materials (dust, scrap, varnishes or paints) could create environmental hazards. There may be significant subcontractor and contractual liability exposures.
Completed operations liability exposures are high if the carpenter provides the structural framework of a building due to the potential for collapse. Quality control and full compliance with all construction, material, and design specifications are necessary. Inadequate monitoring of work orders and change orders may be a concern. Poor record-keeping may necessitate payment of otherwise questionable claims. Inspection and written acceptance of the work by the owner or general contractor is critical.
Workers compensation exposures vary based on the size and nature of the job. Work with hand tools and sharp objects such as saws, chisels and nails can result in cuts, piercings, and accidental amputation. Back injuries, hernias, strains, and sprains can result from lifting. Minor injuries may be frequent even when the severity exposure is controlled. When work is done on ladders and scaffolds, there is a potential for severe injury or death from falling, being struck by falling objects, or adverse weather conditions.
The absence of good maintenance of scaffolds, proper use of basic safety equipment, such as properly installed guards, steel-toed shoes, and eye protection, and strict enforcement of safety practices may indicate a morale hazard. Employees must be carefully selected, trained and supervised. Occupational disease exposures can result from exposure to noise, dust, and chemicals, such as from pressure-treated lumber.
Inland marine exposures include accounts receivable if the cabinet installer offers credit to customers, contractors' equipment for owned or rented tools and equipment, goods in transit, installation floater, and valuable papers and records for customers' and suppliers' information. Equipment at a jobsite can be damaged by drops from heights, weather damage, or being struck by vehicles. Equipment and supplies left at jobsites are subject to theft and vandalism.
Lumber or woodwork can be damaged during transport from shifting, improper loading or inadequate tie down. Oversized loads can be damaged by collision with stationary structures or other vehicles.
Crime exposures are from employee dishonesty. Background checks, including criminal history, should be performed on all employees providing services to customers or handling money. All ordering, billing and disbursement should be handled as separate duties with reconciliations occurring regularly.
Business auto exposures are limited unless lumber and pre-made items are transported by the cabinet installer. MVRs must be run on a regular basis. Random drug and alcohol testing should be conducted. Vehicles must be well maintained with records kept in a central location. Hazards of transport include failure to secure the load properly and equipment failure, especially tie-downs and hitches. If oversized items are transported, vehicles must be clearly marked.
What Does Cabinet Installer Insurance Cover & Pay For?
Cabinet installers, like any contractors, can face legal action for a variety of reasons. It's essential to understand the potential problems and how insurance can help manage these risks. Here are a few examples:
1. Professional Negligence: This can occur when a cabinet installer fails to deliver the promised quality of work or does not follow the agreed-upon plans. In such cases, clients may sue for damages. Professional liability insurance, also known as errors and omissions insurance, can help cover the legal costs and any damages awarded in such cases.
2. Property Damage: During the course of their work, cabinet installers may inadvertently cause damage to a client's property. For instance, they might damage the floor or wall while installing cabinets. In this case, a general liability insurance policy can help. This policy covers property damage and bodily injury claims that can occur during the course of business operations.
3. Personal Injury: If a cabinet installer or their employee injures themselves while on the job, they could potentially sue the business. Workers' compensation insurance is designed to protect businesses in such situations. It provides coverage for medical expenses and lost wages if an employee is injured or becomes ill due to their work.
4. Breach of Contract: If a cabinet installer fails to complete a project on time, or if the finished product does not meet the specifications detailed in the contract, clients may sue for breach of contract. A general liability insurance policy can help cover the legal expenses associated with these types of lawsuits.
5. False Advertising: If a cabinet installer makes false or misleading claims about their services, they could be sued by clients or competitors. For example, if they advertise that they use a certain type of wood in their cabinets, but they actually use a cheaper substitute, this could lead to legal action. In such cases, a policy like advertising injury coverage, which is typically part of a general liability insurance policy, can help cover legal costs and damages.
It's important to note that the specific coverage provided can vary between different insurance policies and providers. Therefore, cabinet installers should thoroughly review their policies to understand exactly what is covered and what is not.
Commercial Insurance And Business Industry Classification
- SIC CODE: 1751 Carpentry Work
- NAICS CODE: 238350 Finish Carpentry Contractors, 236118 Residential Remodelers
- Suggested Workers Compensation Code(s): 5645 Carpentry - Construction of Residential Dwellings Not Exceeding Three Stories in Height, 5437 Carpentry - Installation of Cabinet Work or Interior Trim, 5403 Carpentry - NOC
Description for 1751: Carpentry Work
Division C: Construction | Major Group 17: Construction Special Trade Contractors | Industry Group 175: Carpentry And Floor Work
1751 Carpentry Work: Special trade contractors primarily engaged in carpentry work. Establishments primarily engaged in building and installing cabinets at the job site are classified in this industry. Establishments primarily engaged in building custom cabinets for individuals in a shop are classified in Retail Trade, Industry 5712. Carpentry work performed by general contractors engaged in building construction is classified in Major Group 15.
- Cabinet work performed at the construction site
- Carpentry work-contractors
- Folding door installation-contractors
- Garage door installation-contractors
- Joinery, ship-contractors
- Ship joinery-contractors
- Store fixture installation-contractors
- Trim and finish-contractors
- Window and door (prefabricated) installation-contractors
Cabinet Installation Insurance - The Bottom Line
To find out if you need additional types of cabinet installer insurance and how much coverage you should carry for each policy, speak with an broker that has experience with business insurance for carpenters.
Additional Resources For Contractors & Home Improvement Insurance
Learn about small business contractor's insurance, including what it covers, how much it costs - and how commercial insurance can help protect your contracting business from lawsuits.
- Air Conditioning Systems Installation Repair
- Appliance Repair & Service
- Blacksmith & Metal Workers
- Boat Repair & Dry Docks
- Boiler Contractors
- Builders Risk
- Building Cleaning & Maintenance Services
- Cabinet Installer
- Cable And Satellite TV Installer
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- Contractor Liability
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- Door And Window Installers
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- Flooring Contractor
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- Garage Door Installer And Repair
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- Glazier Insurance
- Gutter Installation And Repair
- House Cleaning
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- Janitorial Cleaning Services
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- Lawn Irrigation Sprinkler System Installation
- Oil And Gas Well Drilling Contractors
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- Plastering And Stucco Contractor
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- Siding Contractor
- Sign Installation & Repair
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- Snow Plow
- Stone And Tile Installer
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- Swimming Pool Contractor
- Swimming Pool Service And Maintenance
- Tank Cleaners
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- Welding Contractor
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The contracting industry is a field that involves a lot of risks, both for the contractor and for the clients they work for. This is why commercial insurance is so important for contractors. Insurance can protect contractors from a variety of potential losses, such as:
Liability: If a contractor causes damage to a client's property or if a client is injured while on a job site, the contractor could be held legally responsible. Liability insurance can cover legal fees and any settlements or judgments that may be awarded.
Property damage: Contractors often use a lot of expensive equipment and tools, and there is always a risk that this equipment could be damaged or stolen. Commercial property insurance can help cover the cost of replacing damaged or stolen equipment.
Business interruption: If a contractor is unable to work due to an unforeseen event, such as a natural disaster, insurance can help cover their lost income during this time.
Workers compensation: If a contractor or one of their employees is injured on the job, worker's comp can help cover medical expenses and lost wages.
Overall, commercial insurance is an important risk management tool for contractors. It can provide financial protection against a wide range of potential losses, helping contractors to stay in business and continue serving their clients.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Contractors' Equipment and Tools, General Liability, Employee Benefits Liability, Umbrella Liability, Automobile Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivable, Builders Risk, Computers, Goods in Transit, Installation Floater, Valuable Papers and Records, Cyber Liability, Employment-related Practicesand Stop Gap Liability.