Without insurance, carpenters risk their business’ future as they could get stuck paying out of pocket for a number of scenarios, including liability claims, employee injuries, illness, or death, property damage, vandalism, property loss, property damage, and more.

Carpenter insurance offers coverage to ensure that you do not face significant financial or legal repercussions in events such as these.

But before you take out a policy, it is important to understand what will be covered, how much it costs, and where to find the right provider.

Read below to learn more about the cost of carpenter insurance and how it can help protect your business.

We Cover in This Guide

• How much does the carpenter insurance cost?
• What is carpenter insurance?
• What does carpenter insurance cover?
• Benefits
• Tips for buying
• FAQ
• Summary
• All types of insurance carpenters may need

How Much Does the Carpenter Insurance Cost?

The cost of carpenter insurance is dependent on several factors, such as the size of your business, the number of employees you have, risk factors, and more.

What is Carpenter Insurance?

Carpenters provide a very important service; however, carpentry can involve dangerous work that may result in injury, property damage, or other issues.

When things like this happen, customers or employees may choose to take legal action, which can result in significant income loss if your business is found to be liable.

Carpenter insurance protects you and your company by mitigating costs related to lawsuits, damages, etc.

What Does Carpenter Insurance Cover?

Carpenter insurance coverage varies depending on your provider, the level of coverage you choose, and other factors.

With that in mind, a typical carpenter insurance policy covers:

• Vandalism
• Property damage
• Injury
• Property loss
• Illness or death
• Theft
• And more

To understand what is and is not covered by your carpenter insurance, it is important to take the time to carefully review your policy for exclusions.

Benefits

The primary benefit offered by carpenter insurance is that it protects you and your company in case of accidents.

This often includes accidents you may not anticipate happening, including accidentally damaging a customer’s property or someone being injured on your worksite.

By making sure you have the coverage you need, you can spend less time worrying about potential accidents, and spend more time focusing on your projects and the success of your carpentry business.

Carpenter insurance can also give your customers peace of mind and show them that you are serious, allowing you to take on new and bigger projects.

Tips for Buying

1. Compare rates: The cost of carpenter insurance can vary greatly depending on the lender you choose, so be sure to compare at least three to five quotes to find the best rates available.

2. Know what coverage you need: Listed above are common types of insurance policies for carpentry businesses, but depending on the specific type of work your company does, you may or may not need all of them. Knowing what coverage you need will help you find cost-effective coverage.

3. Review exclusions: Knowing what your policy does not cover is just as important as knowing what it does cover. Reviewing your policy for exclusions will help you identify which supplemental policies you may need.

FAQ

How much does carpenter insurance cost?
The cost of carpenter insurance depends on the level of coverage you choose. For basic general liability coverage, you can expect to spend $350 to $1,000 per year.

Do carpenters need surety bonds?
Construction surety bonds are typically required when a carpentry business takes on a big job. These bonds guarantee that you will complete the project as expected.

Do carpenters need general liability insurance?
Yes, general liability insurance protects your carpentry business against individuals claiming bodily injury and property damage caused by your work and your business.

Summary

Carpenter insurance offers coverage for accidents, personal or bodily injury, illness, or death, property damage, theft, vandalism, and more.

While you hopefully will not experience any of these incidents, it is important to take out the right carpenter insurance policy to protect your company in case any claims are made against you.

All Types of Insurance Carpenters May Need

Carpenters should consider taking out the following insurance policies to ensure they are fully covered in case of an accident:

General Liability: Provides coverage for carpenters in case of damage, mistakes, or accidents. Includes coverage for property damage, bodily injury, personal injury, and related accidents.

Disability Insurance: Offers coverage in case a worker becomes disabled due to a work-related accident. Pays part of the worker’s salary and covers medical and long-term care costs.

Workers’ Compensation Insurance: Most states require this type of insurance if your business meets a minimum number of employees. These policies pay for medical expenses related to an employee illness or injury, as well as lost wages during recovery.

Commercial Auto Insurance: Commercial auto insurance will protect your carpentry business from the cost of auto accidents that occur while performing business-related activities.

Surety Bond: Though not quite the same as insurance, this is a similar item that is helpful for carpenters to maintain. A surety bond acts as a guarantee that your carpentry business will adhere to state laws and will complete projects to your clients’ expectations. The bond helps people know that if something problematic happens with their job they have extra recourse. This is what it means when you tell your clients that you are “licensed, bonded, and insured.”