Carpenters Insurance Policy Information
Carpenters Insurance. As a carpenter, you provide an invaluable service to your clients; however, there is always a chance that an accident could happen or that your property could become damaged.
Carpenters may perform interior work only, exterior work only, or both. Exterior carpentry includes framing work, such as structural support for a new building or structure. Interior carpenters perform remodeling, repair, finishing or refinishing. Interior carpentry consists of either rough or finish work.
Rough work includes framing windows and doors, laying floor joists and subfloors, or stairways. Finish work involves hanging doors, installing baseboards and molding around doors and windows, and making or installing cabinets, shelving or other built-ins.
Whether you are a solo practice or you employ a crew, if you own a carpenter business, keeping yourself, your clients, and your employees (if you have them) protected needs to be a top priority. Commercial insurance coverage is the best form of protection you can buy.
Carpenters 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 carpentry insurance questions:
- What Is Carpentry Insurance?
- How Much Does Carpentry Insurance Cost?
- Why Do Carpenters Need Insurance?
- What Type Of Insurance Do Carpenters Need?
- What Does Carpenters Insurance Cover & Pay For?
What Is Carpentry Insurance?
Carpentry insurance is a type of insurance that specifically covers carpenters and their businesses. It typically includes coverage for property damage, liability, and injuries that may occur while performing carpentry work.
This insurance may also cover loss of income or additional expenses if a job is delayed or interrupted due to an accident or other covered event. It is important for carpenters to have this insurance to protect themselves and their business from financial loss in case of an accident or other unforeseen event.
How Much Does Carpentry 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 Carpenters Need Insurance?
Carpenters need insurance for a variety of reasons. Firstly, as carpenters work with a variety of tools and materials, there is always the risk of accidents or injuries occurring on the job. Insurance can provide financial protection in the event of an accident, covering medical expenses and lost wages.
Additionally, carpenters may be liable for any damages or injuries caused by their work. For example, if a carpenter builds a deck that collapses and causes injury to someone, they may be held responsible. Insurance can provide protection against these types of liabilities.
Furthermore, carpenters often work on construction sites where there are many other contractors and tradespeople present. There is always the risk of damage to other people's property or equipment. Carpenters insurance can provide coverage for these types of incidents, protecting the carpenter from financial responsibility.
In summary, carpenters need insurance to protect themselves and their business from the various risks and liabilities that come with their profession. Without insurance, a carpenter could face significant financial loss in the event of an accident, injury, or damage to property.
Rough and finish carpenters aren't the only professionals who should carry the above-mentioned policies; any professional who performs carpenter-related services should protect themselves with insurance coverage, including:
- Home, business, and framing contractors
- Cabinet installers
- Deck installers
- Construction companies
What Type Of Insurance Do Carpenters Need?
There are several types of insurance policies carpenters should carry. Some are required and some are optional, but all are a valuable asset to your business. Essential carpenters insurance policies include:
Commercial General Liability. No matter how big or small your business may be, general liability insurance is an absolute must. This type of insurance offers coverage for third party injuries and property damage, as well as legal fees and settlements.
For instance, if you or an employee damages a client's property, general liability insurance will help to pay for the repair or replacement of the damaged property. If that client files a lawsuit against you, this type of carpenters insurance will also help to cover the cost of legal expenses.
Commercial Property. A business property insurance policy covers damages to your business, including the structure, the contents within it, and parts of the property surrounding it. For example, if a storm damages your building, someone steals equipment, or there is an act of vandalism, this type of insurance coverage will help pay for any repairs that need to be made and the replacement of stolen or damaged equipment.
Workers Compensation. If you employ a crew of carpenters, workers comp is vital. In most states it's required. This coverage protects your employees from any work-related injuries or illnesses that they may sustain.
If an employee suffers an injury while operating machinery, workers comp insurance will pay for medical bills, wages that are lost while the employee is unable to work, any rehabilitation that may be necessary, and a number of other things.
Business Auto. If you rely on cars or trucks for your business, having a commercial auto insurance policy is a wise idea. Should you be involved in an accident while driving a work van to a job site, this policy will cover the damages to vehicles involved in the accident, medical bills, and damaged equipment inside your van.
Carpentry Risks & Exposures
Property exposures at the carpenter's own location are usually limited to an office and storage of materials, equipment, and vehicles. If the carpenter 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 carpenter'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 carpenter 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 carpenter. 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 Carpenters Insurance Cover & Pay For?
Carpenters can be sued for various reasons, such as:
Property damage: Carpenters can be held liable for damaging someone else's property while working on a job site. For example, if a carpenter accidentally damages a client's furniture or floors, they may be sued for the cost of repair or replacement.
How insurance can help: A carpenter's liability insurance can cover the cost of damages up to the policy limit, including legal fees and settlement costs.
Bodily injury: If someone is injured on a job site due to a carpenter's negligence, they may sue for medical expenses, lost wages, and pain and suffering. For example, if a carpenter leaves a tool on the ground and someone trips and falls, they may be held liable for any resulting injuries.
How insurance can help: A carpenter's liability insurance can cover the cost of medical expenses, lost wages, and legal fees related to the injury up to the policy limit.
Workmanship issues: If a carpenter's work is deemed to be subpar or faulty, they may be sued for breach of contract or negligence. For example, if a carpenter installs a cabinet that falls off the wall, they may be sued for the cost of repair or replacement.
How insurance can help: A carpenter's errors and omissions insurance can cover the cost of damages related to faulty workmanship up to the policy limit, including legal fees and settlement costs.
Accidents: If a carpenter is involved in an accident while driving a company vehicle or operating machinery, they may be sued for damages or injuries. For example, if a carpenter causes a car accident while driving to a job site, they may be sued for damages and medical expenses.
How insurance can help: A carpenter's commercial auto insurance can cover the cost of damages or injuries resulting from an accident up to the policy limit, including legal fees and settlement costs.
Overall, insurance can help protect carpenters from financial losses and legal liabilities in case of unforeseen events. It's important for carpenters to choose the right type and amount of insurance coverage to ensure they are adequately protected.
Commercial Insurance And Business Industry Classification
- SIC CODE: 1751 Carpentry Work, 1521 Single-Family Housing Construction
- NAICS CODE: 238130 Framing Contractors, 238330 Flooring Contractors, 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
Carpentry Insurance - The Bottom Line
Business insurance can save you from severe losses that could cause severe financial strain and potentially shut down your business. To find out what type of insurance coverage you should carry and how much it will cost you, speak to a reputable agent who specializes in 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.
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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.