Insurance for Carpenters
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What is Carpenter Insurance?
Carpentry can be a risky business. Protecting yourself, your business, and your employees is important. Insurance for carpenters and contractors can help you work with more confidence.
Carpenter insurance (shorthand for the many types of insurance that carpenters may consider) helps protect your business against claims that you’re likely to face on the job, such as:
- Client property damage or injuries
- Employee workplace injuries
- Mistakes in your work or professional advice
- Damage to your business property
- Unplanned business interruptions
Find coverage that fits your small business.
BizInsure’s licensed agents help carpenters get coverage to protect their growing businesses. Compare quotes from top-rated insurers online or over the phone and get instant coverage today!
Did you know?
Commercial landlords may require you to have General Liability insurance to rent their workshop or warehouse space for your business.
Why do carpenters need business insurance?
Anything can happen when you’re running a small business. Job site accidents, mistakenly giving bad advice or wild weather can result in expensive bills or lost income if you have to stop work. Without insurance, these expenses would fall squarely on your shoulders.
Claims and lawsuits can be devastating for business owners. Legal costs, compensation, and other unplanned expenses could quickly drain your bank accounts. In a worst-case scenario, they could even put you out of business.
Carpenter insurance helps you prepare for the unexpected. Instead of paying unexpected costs from your own pocket, your insurance policies cover them for you.
Some types of coverage may be required to receive a carpentry or general contractor license, to work with certain clients or to lease commercial space for your business.
What types of insurance do carpenters need?
Carpenters commonly consider these types of coverage for their businesses:
General Liability insurance
General Liability insurance for commercial carpenters protects your business against bodily injury or property damage lawsuits from outside parties.
As a carpenter, you already know that you run a risky business. But while you’re likely mindful of the risks that can happen to your body, have you thought about the people you regularly interact with while on the job?
Clients, contractors, suppliers and even delivery people might also be at risk when visiting your workspace or business premises. Simply tripping over a mislaid toolbox could cause a serious injury. And if this person seeks compensation for these injuries, could you afford to pay their medical bills and more?
General Liability insurance also covers your legal expenses as well as your cost to replace or remedy the situation up to the limits of liability.
Business Owner’s Policy
A Business Owner’s Policy (BOP) is a convenient and affordable way for small business owners to protect against several of their most common exposures. These policies combine General Liability insurance with other types of coverage, such as business interruption and business property damage.
Carpenters appreciate the convenience that a BOP can provide to their small business. It can easily help you cover multiple risks, from broken equipment to unplanned work interruptions.
Workers’ Compensation
Workers’ Compensation insurance protects you against medical expenses and lawsuits that can arise from employee workplace injuries and illnesses. It could also pay lost wages as a result of the work injuries that an employee sustains.
Most states require businesses with employees to have a Workers’ Compensation policy. In rare instances, you may also be required to have this coverage as a sole proprietor.
Professional Liability insurance
Professional Liability insurance protects you from claims raised due to unintentional mistakes made in the professional capacity.
As a carpenter, you may be asked to provide advice or recommendations based on your expertise. If you make a mistake in your work—no matter how small or innocent—it could end up costing your client money. Professional Liability insurance can help cover your legal costs and compensation if a claim or lawsuit comes your way.
What does insurance for carpenter cover?
Your coverage will depend on the types of insurance you choose. Insurance for carpenters may cover things such as:
- Third-party injuries – A contractor trips and falls over your toolbox. They injure themselves and want you to pay their medical bills.
- Third-party property damage – You knock over a table at a worksite and damage another contractor’s tools that were left on the table. They expect you to pay for repairs or replacements.
- Employee workplace injuries and illnesses – Your employee breaks their arm on the job. They’re unable to work for several weeks until it heals, meaning they’ll be without a paycheck and left with hefty hospital bills.
- Legal and defense costs – A lawsuit is brought against your carpentry business. You’re now facing expensive legal bills and other costs associated with defending yourself in court.
Who needs carpenter insurance?
Small business owners of all types want to protect their small businesses from potentially devastating liability claims. Tradesmen and tradeswomen are no different.
- Insurance for Self-Employed Carpenters – Owning your own business is exciting, but it also means that a lot of responsibility falls on your shoulders. Business insurance can help you manage many of the risks you may face.
- Insurance for Commercial Carpenters – Whether you work as a subcontractor with other companies or employ multiple carpenters in your own business, business insurance can protect your business and employees.
- Insurance for Contractors – It’s not just carpenters who might consider getting covered! Contractors specializing in different trades—from a handyman to an electrician—may also seek the peace of mind that business insurance provides.
How much does insurance cost for carpenters?
Insurance costs for carpentry businesses vary because insurers consider many factors when calculating premiums.
For example, insurance for a self-employed carpenter who works as a sole proprietor will likely cost less than for a commercial carpenter’s business whose policy will cover all employees.
Factors that help decide your premiums include:
- Type of carpentry work you do, i.e. residential or commercial
- Business size and annual revenue
- Who will be covered, and their professional qualifications
- History of past claims
- Amount of coverage you are seeking
To understand how much you can expect to pay for carpenter’s insurance, you may want to compare multiple quotes from different insurers.
How do I get carpenters insurance?
BizInsure is proud to help carpenters and contractors find insurance to fit their unique business needs.
Compare policies from leading insurers (A-rated or better) and buy online or over the phone. Our system is easy—with no complicated paperwork or long application process. Simply enter details about your business, compare quotes, select a policy and buy.
In just minutes, you can have instant coverage and receive your certificate of insurance via email.
Ready to find insurance for carpenters to fit your small business needs? Click or call BizInsure to compare policies today.
Frequently Asked Questions
Is carpenters insurance required by law?
Some types of insurance for self-employed carpenters and commercial carpenters may be required by law in your state. For example, you may need to show proof of General Liability insurance to obtain a carpentry license or Workers’ Compensation insurance to get a business license.
You may need certain types of coverage in some circumstances even if it is not required by law in your area:
- Renting commercial space – Your landlord may require proof of General Liability insurance to rent office, workshop or warehouse space.
- Working with clients – You may be asked to show proof of General Liability and/or Professional Liability insurance by certain clients, particularly if you are working as a subcontractor for another business.
Regardless of whether insurance is required for your business, you may still consider getting a policy. Without coverage, you could be solely responsible for legal fees, compensation payments, medical bills, and other unexpected bills.
Does carpenters Insurance cover damage to tools & equipment?
General Liability insurance can cover you if you accidentally damage a third party’s tools or equipment while you are working. For example: While on site, you knock over a ladder and damage the tools that were sitting on top of it. The contractor who owns the tools makes a claim against you. In this case, General Liability insurance would cover the damage to the contractor’s tools.*
However, General Liability insurance does not cover damage to your own tools or equipment. Policies specifically designed to protect your tools and equipment may be available.
What insurance do self-employed carpenters need?
Self-employed carpenters may consider insurance to protect their carpentry business.
Carpenters who work as sole proprietors are often responsible for all aspects of their small business. This also means that when a claim is made, they are solely responsible for legal fees, bills, or compensation payments. Carpenter insurance can help protect your bank accounts from potentially expensive claims that could derail your business.
Similarly, if you own a business that hires carpenters, you may also need insurance to cover their activities. General Liability insurance can help cover accidental third-party injury and property damage claims, while Workers’ Compensation insurance helps cover workplace injuries and illnesses.
How much insurance do I need as a carpenter?
The amount of insurance you may need will depend on many factors, such as the size of your business, the types of projects you accept, and whether you have employees.
Carpenters who work on larger, more expensive projects may need more General Liability coverage as the risk of something going wrong may be greater. A carpenter who employs a crew, no matter how small, may need Workers’ Compensation coverage to comply with the law and protect their staff.
Does carpenter insurance cover employees?
Workers’ Compensation insurance covers employee workplace injuries and illnesses. If a member of your staff is injured or falls seriously ill on the job, your policy may cover the cost of their medical bills, lost wages, and other expenses related to the incident.
Learn more about carpentry insurance in the states where you work.
As with any insurance, coverage will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this guide is general only and should not be relied upon as advice. The number of quotes provided varies between products, occupations and other underwriting factors determined by the insurers.
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