Deck Builders Insurance Policy Information
Deck Builders Insurance. Exterior carpentry includes framing work, such as structural support for a new building or building decks. Do you design and install custom decks for a living? If so, then you need to take the proper precautions to protect yourself and your business from potential issues that could arise.
A single error or an unexpected event could result in serious damages that could ultimately lead to serious - and costly - repercussions.
Safeguard yourself from the unexpected; invest in deck builders insurance.
Why is business insurance important for deck builders? What type of coverage should deck builders carry? Below, you'll find the answers to these questions so you can keep your livelihood - and yourself - protected from the unthinkable.
Deck builders 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 deck builders insurance questions:
- What Is Deck Builders Insurance?
- How Much Does Deck Builders Insurance Cost?
- Why Do Deck Builders Need Insurance?
- What Type Of Insurance Do Deck Builders Need?
- What Are Deck Builders Risks & Exposures?
- What Does Deck Builders Insurance Cover & Pay For?
What Is Deck Builders Insurance?
Deck builders insurance is a type of insurance coverage specifically designed for contractors and builders who specialize in the construction and installation of decks, porches, and other outdoor structures. It provides protection against potential claims and lawsuits arising from accidents, injuries, or property damage that may occur during the construction process.
This type of insurance typically includes coverage for liability, property damage, and workers' compensation. It may also include coverage for equipment, tools, and materials used in the construction process.
How Much Does Deck Builders Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small custom deck builders ranges from $47 to $59 per month based on location, size, payroll, sales and experience.
Why Do Deck Builders Need Insurance?
Deck builders need insurance for a number of reasons. Firstly, insurance helps to protect their business in case of any unforeseen events that may occur during the construction process. This could include accidents, damage to property, or injury to employees or contractors. Insurance can help to cover the cost of these incidents, allowing the business to continue operating without the financial burden of paying for damages out of pocket.
Another reason why deck builders need insurance is to protect themselves against potential legal liabilities. If a deck they have built fails or collapses, they could be held responsible for any injuries or damages that occur as a result.
Deck builders insurance can help to cover the cost of any legal fees or settlements that may be required, ensuring that the business is not financially ruined by a single incident.
Finally, insurance can also help to provide peace of mind for both the deck builder and their clients. By having insurance in place, deck builders can show their clients that they are committed to professional and responsible practices, and that they take the necessary precautions to ensure the safety of their work. This can help to build trust and credibility with potential clients, which is essential for any successful business.
To avoid the financial burden that's associated with errors and accidents that you're responsible for, you need to have the right type of deck builders insurance.
When something unexpected arises, instead of paying the expenses yourself, your insurance provider will cover the costs for you. Plus, you're legally required to carry certain types of coverage; if you operate without mandated policies, you could face serious fines and potentially lose your business.
What Type Of Insurance Do Deck Builders Need?
The type of commercial insurance custom deck builders require varies and depends on several factors; where your business is located and the size of your operation, for example. That being said, there are certain deck builders insurance policies that every exterior carpentry contractor should have, regardless of the specifics of their business. Examples of required policies include:
- Commercial General Liability - What if a client filed a lawsuit against you, claiming that you or a worker damaged their property? What if a delivery person trips over an unmarked pile of wood at your commercial space and suffers an injury? With commercial liability insurance, these types of events would be covered.
- Commercial Property - This policy is designed to protect the physical structure of your commercial space, structures that surround it (sidewalks, signage, etc.), and the contents within your warehouse or office from acts of nature and vandalism. For instance, if a fire breaks out and damages your building and supplies inside, commercial property insurance would cover the cost of things that need to be repaired or replaced.
- 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 a custom deck, 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 comp covers these expenses for you.
- Inland Marine - You probably rely on a lot of equipment to install the decks you build, and this equipment likely has a pretty high price tag. With business equipment insurance, you won't have to pay for any repairs that machinery and tools require; your insurance carrier will cover the repairs for you.
- Commercial Auto - Even if you have your own personal auto insurance, it won't protect you if there's an accident involving a work van or truck; for that, you'll need commercial auto policy. This type of coverage will pay for the damages that your commercial vehicles sustain in an accident, as well as other vehicles that may be involved in an accident with your commercial vehicle.
These are just a few examples of some of the deck builders insurance policies you'll want to invest in as a custom deck builder. You might need additional coverage, too.
What Are Deck Builders Risks & Exposures
Property exposures at the deck builders' own location are usually limited to an office and storage of materials, equipment, and vehicles. If the deck builders 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 deck builders' 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 deck builders 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 deck builders. 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 Deck Builders Insurance Cover & Pay For?
Deck builders are professionals who construct and repair decks, patios, and outdoor living spaces for homes and businesses. They face various risks in their line of work, including accidents, injuries, and property damage. If a customer or third party suffers harm due to the deck builder's actions, they may file a lawsuit seeking compensation for their losses.
Here are some examples of lawsuits that a deck builder may face, and how insurance can help pay for them:
Personal injury: A deck builder is installing a deck for a homeowner when a tool falls and injures the homeowner. The homeowner files a lawsuit against the deck builder for their medical expenses and lost wages. The deck builder's general liability insurance can help cover the costs of the lawsuit, including legal fees, settlements or judgments, and medical expenses.
Property damage: A deck builder is constructing a deck when they accidentally damage the neighboring property. The property owner files a lawsuit against the deck builder for the repair costs. The deck builder's property damage insurance can help pay for the damage to the neighboring property and cover any legal costs associated with the lawsuit.
Breach of contract: A deck builder and a homeowner enter into a contract for the deck builder to construct a deck on the homeowner's property. The deck builder fails to complete the project on time, and the homeowner sues for breach of contract. The deck builder's professional liability insurance can help pay for the legal costs and any damages awarded to the homeowner.
In all of these cases, insurance can provide financial protection to the deck builder and help them pay for the costs of the lawsuit. It's essential for deck builders to have appropriate insurance coverage to protect their business and assets from potential legal claims.
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
Deck Builders Insurance - The Bottom Line
To make sure that you are properly covered, consult with a reputable broker that specializes in commercial insurance. You'll be able to find out what type of deck builders insurance policies would be in your best interest to invest in, as well as the limits on any policies you carry.
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
- Chimney Sweep
- Cistern Contractors
- Contractor Liability
- Curtain Cleaners
- Deck Builders
- Door And Window Installers
- Dryer Vent Cleaning
- Drywall Contractor
- Electrical Contractors
- Environmental Remediation Contractors
- Fence Installation
- Fire Sprinkler Contractors
- Fire & Water Restoration Contractors
- Flooring Contractor
- Furniture Repair
- Garage Door Installer And Repair
- General Contractors
- Glass Contractor
- Glazier Insurance
- Gutter Installation And Repair
- House Cleaning
- HVAC Contractor
- Insulation Contractor
- Janitorial Cleaning Services
- Lawn Care
- Lawn Irrigation Sprinkler System Installation
- Oil And Gas Well Drilling Contractors
- Paperhanging Contractors
- Plastering And Stucco Contractor
- Pressure Washing Contractors
- Propane And Fuel Dealers
- Rug, Upholstery & Carpet Cleaning
- Sandblasting Contractors
- Security Alarm
- Septic Tank Cleaning
- Siding Contractor
- Sign Installation & Repair
- Solar Panel Installers
- Snow Plow
- Stone And Tile Installer
- Surety Bonds
- Swimming Pool Contractor
- Swimming Pool Service And Maintenance
- Tank Cleaners
- Tool Grinding And Repair
- Tree Surgeon
- Tree Trimming
- Upholstery Shop
- Waste Haulers & Garbage Collection
- Water Well Drilling
- Welding Contractor
- Wildlife & Pest Control
- Window Cleaning
- Specialty Contractors
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.