Carpenters insurance is a layer of protection from anyone working in the trade. An accident or lawsuit could be taxing financially for a single person or large business alike. Having the right carpenters insurance is an important part of protecting your business and assets. We’ve evaluated the best business insurance providers based on coverage, financial stability, customer satisfaction, and overall quality.
Coverwallet began its journey in New York City in 2015 operating under the
Aon Insurance banner. At Coverwallet, you can access everything you need to
keep your company well-protected at an unbeatable price.
With a 100-year history of insuring businesses, Hiscox is well-known across
America and globally. With more than 500,000 small business customers,
Hiscox is fully aware and trained in the unique risks a business can face.
Thimble provides business insurance that can be tailored to your business by
the year, month, day, or even the job. At Thimble, the process to getting
the right business insurance is simple, scalable, and flexible.
Carpenters insurance is an essential part of any carpenter’s business. It provides financial protection from any injuries or lawsuits that your business might encounter from the day-to-day operations.
Who needs carpenters insurance?
Tradesmen working with wood to make products for customers, whether cabinetry, rough framing for structures, or custom statues, all should consider carpenters insurance. All of these trades have risks that are associated with them, regardless of the safety precautions you may have.
What insurance do carpenters need?
There are several types of insurance that carpenters can carry to protect their business. It is never a question of if something will happen. Rather, the question is when something will happen. How many layers of protection you want for your business is up to you, so we have listed the types of insurance offered to carpenters:
General liability insurance
General liability insurance covers:
Bodily injury: A client or another contractor on the project is injured as a result of your negligence or the negligence of your workers. For example, you finished working for the day on a framing project. Despite the warning signs and caution tape blocking the project site, the client decides to enter the site and breaks their wrist after tripping on a tool and sues you.
Property damage or data loss: Property or infrastructure containing data is damaged due to your negligence or the negligence of your workers. For example, during an installation, you accidentally drill through a water supply pipe and cause a leak that drips onto a company’s servers and they lose part of their data due to water damage. They file a claim against your business.
Personal injury: Someone suffers harm other than bodily injury due to your negligence or the negligence of your worker. For example, a client is difficult to work with. You talk to someone at a bar and tell them about this client. This person turns out to be a journalist and he writes a column about the client, which causes the client to lose business. The client sues you for slander and damages due to this article.
Commercial auto insurance
If you are using a vehicle or trailer to transport materials and tools to project sites or to carry out necessary actions for the job, this policy could be ideal for you. Type of vehicles that are generally covered:
Light vehicles: Sedans, small trucks, vans, SUVs, and other smaller vehicles.
Heavy vehicles: Equipment trucks, dump trucks, etc.
Trailers: Utility trailers, container trailers, etc.
Commercial property insurance
If unforeseen circumstances occur like a fire or weather conditions that damage your business’s real estate, investments, equipment, commercial vehicles, commercial property insurance can help cover the costs of these losses.
Workers compensation insurance
This type of insurance protects the owners and the business from claims arising from injuries in the workplace. It also helps the injured party recover, rehabilitate, and still earn a portion of their lost wages while on medical leave. Workers’ compensation is generally required by state laws.
Commercial umbrella insurance
Usually a supplemental type of insurance to an existing general liability policy. Commercial umbrella policies are purchased if a business owner thinks that a claim or claims that arise will surpass the general liability policy limits.
Equipment insurance
This policy covers a carpenter’s tools, products, equipment, and materials when being transported or stored temporarily at a third-party location, such as a jobsite.
Professional liability insurance
If a defective product injures someone or causes damage to property, this type of insurance covers any claims from these types of damages.
What are the limits of carpenters insurance?
The standard limit for carpenters insurance is a $1M per occurrence and a limit of $2M in aggregate. The higher limit policies are typically a $2M per occurrence limit and a $4M limit in aggregate.
How much does carpenters insurance cost?
There are many variables that can affect the price of a carpenter’s insurance policy. Some of the main factors that have an impact on the cost are:
Deductible: If you have a higher deductible, your policy will generally be less expensive than a low deductible.
Per occurrence limit: There are different options for the limits of coverage, a higher limit will raise the total cost of the policy.
Location: If your jobsite or headquarters is located in an area with higher natural disasters or theft, your premium will be higher than safer areas.
Number of employees: With more people working, the risk of an accident is higher and the policy cost will be higher.
Carpenters insurance can cost between $500-$1500 annually (depending on the above variables).
How to choose the best carpenters insurance
With a wide variety of projects, carpenters need to prepare for the worst case scenario and decide what the best plan and coverage will be for their needs. Here are some things to look for when selecting the best policy for your business:
Responsiveness: How fast does the company respond to you overall? This can be customer service, claim resolution, claim representative, adjuster, etc.
Contract coverage: Does the policy cover all of the standard and common insurance requirements for your business?
Professionalism: Does the insurance company have knowledgeable agents who are able to answer your questions in an informative and professional manner? Do their answers address your concerns and satisfy your questions?
Customizability: Is the provider able to tailor an insurance policy to your specific needs and to the risks in your field?
Payment flexibility: What forms of payment does the insurance company accept? Can you choose whether to pay your premium on a monthly, quarterly, semi-annually, or annually basis?
Geographical coverage: Does the insurance company provide coverage in your area?
