Carpentry is a skilled craft that focuses on the cutting, shape, and installation of wood products throughout the construction process. Not only is carpenter insurance unusual due to the installation element of the profession, but the cutting and storing of timber also need an insurance provider with industry knowledge to deliver a quality quotation. The purpose of insurance for a carpentry business is to cover your responsibilities at a reasonable cost and with the widest, greatest safeguards possible. If you work for a property manager or general contractor, you may have to fulfill specific insurance criteria in addition to coverage concerns before you can even be paid.
Types of Carpenter Insurance
Depending on your expertise, carpenters insurance typically consists of four distinct insurance packages. Each policy has a distinct function in reducing your risk exposure.
- Carpenters General Liability Insurance
Commercial general liability coverage is the most popular policy used by carpentry enterprises. General liability insurance for carpenters safeguards your company against the financial consequences of harming someone or causing damage to someone else’s property while doing your service. For example, if a cabinet you placed toppled and harmed a customer, the general liability coverage would pay your legal fees and cover any judgment up to the policy amount.
- Coverage for the Structure and Contents
Buildings and contents insurance protects the structure (if you own one) and the things within it against direct physical damage that happens while your facility is open for business. Because of the vast volume of raw timber and sawdust in carpentry operations, fires are more likely to start and cause damage. This implies that building and contents coverage is one of the most crucial policies you can buy, but the additional risk makes finding a fair quote challenging. We recommend dealing with an insurance broker that has experience in the wood-products manufacturing and carpentry industries for this coverage.
- Floater for Installation
An installation floater is required if you work in a carpentry specialty that needs you to produce specific goods and bring those products to the project site for installation (e.g., a custom cabinet maker). This policy covers property that has been brought to or stored on the project site while it is being installed. With this coverage, if a vehicle accident destroys your work or your product is taken from the site, you may be able to recoup your losses.
- Compensation for Employees
Finally, as a contractor, you must consider workers’ compensation insurance. This policy, which is required by law, covers employee injuries and lost income if they are harmed on the job. If you are a self-employed tradesperson, certain states allow exemptions from the necessity to acquire insurance, which is commonly referred to as an affidavit of exemption. Having said that, if you work for a general contractor or on commercial tasks, you may be obliged to carry workers’ compensation even if you have no employees.
How much does carpenter insurance cost?
Carpenter insurance may start as little as $500 per month for self-employed craftsmen doing low-risk work like trim carpentry. As your business expands, so will your premium, which will rise in tandem with your income and payroll. Furthermore, if your activities begin to include risky tasks, such as working from heights or structural jobs, your premium will rise.