CARPENTER INSURANCE: What Is It, Who Needs It & Why?

Types of Carpenter Liability Insurance Companies
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All carpenters, including those just starting in business, need to have adequate coverage from a general liability insurance policy from companies. As a subcontractor or owner of a small business, you need the protections that general liability insurance provides. Read on to find out more about carpenter liability insurance coverage from various companies.

Carpenter Insurance 

Every day on the job as a carpenter brings the risk of a serious injury. Insurance for carpenters protects businesses from having to pay large sums of money out of pocket if their work results in serious injury or property damage. Your carpenter’s insurance policy should be reasonably priced, provide adequate liability protection, and be easy to apply for and maintain.

Insurance for bodily harm and property damage to third parties is essential for carpenters, both during and after a job.

Good carpenters know as well as anyone else that mishaps are always a possibility. Because of their responsibility for the buildings’ framework, carpenters run the risk of personal injury or property damage during construction.

What is a Carpenter Insurance? 

Carpenter Insurance is a specialized policy that protects carpenters and their businesses from legal action. This kind of insurance will pay for an accident on the job site that hurts a third party.

If any of your employees become ill or injured on the job, a carpenter’s insurance policy can help cover medical costs and lost wages. Workers’ compensation protects employees who are injured on the job, and commercial auto insurance covers truck collisions. Carpenters should consider several policies, but a basic business owner’s policy should cover their bases.

How Do I Get Carpenter’s Insurance?

Standard business insurance applications will ask for some background information about your company. Payroll records, annual revenue estimates, and a claims history (if any) for insurance should all be ready. 

Contacting an agent or broker is the only way to get a carpenter’s insurance. An insurance agent or broker can help you sort through the various options and make recommendations based on any gaps in coverage they find. 

After you fill out an application and provide supporting materials to your insurance broker, an underwriter evaluates your submission. After the policy is approved and a down payment is sent, coverage begins on the policy’s effective date. The price of a carpenter’s insurance can range widely. Costs depend on:

  • Varieties of Insurance Coverage Obtained
  • The necessary level of protection
  • Your Business Sector
  • Total annual revenues
  • Claims history

Types Of Insurance For Carpenters

Depending on your area of expertise as a carpenter, you may need to purchase multiple types of insurance.

#1. Carpenters General Liability

When it comes to insurance, most carpentry businesses opt for commercial general liability policies.

If a customer is hurt or their property is damaged while you are working, your general liability insurance will cover the costs. An owner may require this of you in case you are responsible for an injury or accident on the job. Although it’s not typically necessary by law, in some states, getting a license might be. 

General liability insurance pays for your mistakes if you hurt someone or damage their property. If you work as a carpenter, general liability insurance can help pay for some of the costs that come up because of claims related to your work, like accidents that hurt someone or damage their property. 

#2. Workers’ Compensation

Finally, workers’ compensation insurance is something you must consider as a contractor. If an employee is hurt on the job, this policy will reimburse them for medical expenses and lost wages. Workers’ compensation insurance is there to help employees who get hurt or sick on the job by covering medical expenses and lost wages.  

Joiners and carpenters have to pay some of the highest premiums for workers’ compensation insurance. A good way to save money on insurance premiums is to purchase this on a pay-as-you-go basis. By making this claim, you can cover the following expenses on an employee’s behalf without taking a financial hit:

  • Medical treatment
  • Hospitalization
  • Medication
  • Rehabilitation and retraining
  • Lost wages
  • Death benefits cover final expenses and a stipend for surviving family members. 

#3. Inland Marine Insurance

This insurance covers tools, equipment, and building materials while they are being stored on the job, at your business, or in transit. Carpenters need inland marine insurance to safeguard their tools and equipment while they are on the move. Every day, as a carpenter, you have to move your toolbox and supplies to a new building. You can only perform your duties with these tools. Inland marine insurance specifically covers shipping these items. 

You may want to look into professional liability insurance if you offer services like design consulting or blueprint sales.

#4. Commercial Auto Insurance

Having commercial auto insurance protects your financial well-being in the event of an accident involving your company vehicle. Basic commercial insurance covers third-party bodily injuries and property damage from commercial vehicle operations. It may also pay for your medical bills and repair costs if you were not at fault in an accident. As you go to a client’s house, you get into a car accident that is your fault. Commercial auto insurance might cover attorney fees as well as any property damage and third-party medical expenses.

#5. Tools and Equipment Insurance

This coverage offers crucial protection for your tools, which are your most valuable assets. A tools and equipment insurance policy could help you fix or replace any lost, stolen, or broken carpentry tools and equipment. For instance, let us say several power tools were stolen from your company car while you were sleeping. The insurance on your tools and equipment might help pay for the price of new ones.

Carpenters can purchase insurance for their tools and equipment either as a separate policy or as an endorsement of their current general liability or commercial property policies. One important thing to remember is that tool and carpenter equipment insurance does not cover normal wear and tear. 

#6. Commercial General Liability Insurance (CGL)

When you have commercial general liability insurance, you are protected from the typical risks you face on the job, in a client’s home, or in a business. Slip-and-fall accidents, third-party injuries, and property damage are common causes of liability claims. A client may hold you responsible for their injuries if they stumble over your misplaced toolbox, which you have left in a shadowy part of their unfinished home. They may be able to get help paying for their medical expenses thanks to their commercial general liability coverage.

Carpenter Liability Insurance 

General liability insurance for carpenters shields them financially from the majority of customer lawsuits. It can help defray the cost of legal defense if your carpentry business is sued for personal injury, property damage, or intellectual property infringement. The cost of general liability insurance can vary depending on factors like the number of customers you expect each year, the size of your business, the number of employees, and whether or not you have any endorsements for subcontractors or insureds. 

Protect yourself and your company from certain types of lawsuits brought by customers, subcontractors, and the general public with carpenter liability insurance. Carpenters can get a general liability policy from insurance companies that offer tailored policies.

Additional Types of Carpenter Liability Insurance 

Most carpenters carry one or more of the following types of liability insurance: general, professional, public, etc.

#1. Professional Indemnity Insurance

The term “professional liability insurance” also applies to professional indemnity insurance. Carpenters can purchase either a claims-made or an occurrence policy when it comes to professional liability insurance. Additionally, professional liability insurance is usually bought separately. Customized carpenter insurance companies, on the other hand, may offer this as an extra coverage option on top of general liability insurance. 

#2. Business Owner’s Policy For Carpenters 

A business owner’s policy is a package deal that includes both commercial property insurance and liability insurance. It is more affordable than buying the two policies separately. 

A business owner’s policy is advantageous not only because of its lower premiums but also because of its simplicity of administration. If you are a sole proprietorship carpenter with two to three employees and make less than $100,000 a year, a business owner’s policy will provide you with the best protection. 

#3. Builders Risk Insurance For Carpentry Contractors 

Builders’ risk insurance is part of some insurance plans for carpentry contractors. Some of the things that builders’ risk insurance covers are fire, theft, vandalism, explosions, winds, rain, and other events that could damage or destroy the whole project or its parts. 

Obtaining a builder’s risk insurance is a good idea if you are responsible for any damages to the project under the terms of the contract. Getting this is pointless if the opposite is true.

Carpenter Insurance Costs

By shopping around, carpenters can find cheaper insurance policies for their companies. Variables such as your company’s location and employee count will affect the final cost of your insurance policy. 

Carpenters’ insurance premiums can range widely depending on several factors. Your premiums may go up in proportion to the amount of coverage you select. Make sure you are getting the most essential coverage for your situation. The cost of a carpenter’s insurance will increase as your workload increases. Your premiums may be higher than those of a business with $500,000 in annual revenue if you run a large operation.

Depending on where you work, your premium may already include the costs of hurricanes, flooding, and other weather events that happen often. Insurance companies look at past data to figure out how likely it is that your business will file a claim. They may then use this information to figure out how much to charge you.

The cost of insurance goes up as the number of employees goes up. Each employee increases the difficulty of hazard mitigation.

Best Carpenter Insurance Companies 

#1. Nationwide

Because of their affordable average premiums and high policy quote rates, Nationwide is a great option for carpenters in need of a general liability and business owner’s policy (BOP). Carpenters should look no further than Nationwide for their general liability and BOP insurance needs because of their affordable rates and extensive coverage. For small businesses, Nationwide’s general liability policies were the best option because they had the lowest average premiums of all the major insurance companies.

#2. CNA 

CNA offers excellent workers’ compensation protection for carpenters with low average premiums. This company stands out as our top pick for workers’ compensation insurance due to its competitive premiums and comprehensive coverage. Carpentry insurance is just one of the many commercial insurance policies that CNA specializes in. In addition, its representatives can examine your company’s policies to guarantee that they are doing everything possible to safeguard workers. You must make an appointment with a local CNA agent to begin the application process. 

#3. Contractors Bonding and Insurance Company (RLI)

Because RLI has the best workers’ compensation quote rates, it is the best option for carpenters who have trouble getting coverage elsewhere. RLI also has an A+ (superior) rating for its financial strength.

When compared to the other insurers in this analysis, RLI has average premiums that are among the highest. In the short term, RLI could be a good option if you need insurance but are having trouble getting it due to a history of workers’ compensation claims. If you remain accident-free for several years, you may become eligible for carpenter insurance at a more affordable rate. Your insurance policy approval may take up to 15 days.

#4. Acuity

When compared to the other insurers we looked at, Acuity had the fewest customer complaints, making it an easy pick if quality of service is your top priority. Its website is easy to navigate and it offers instant online quotes. Acuity has a lower complaint rate than other insurers and provides its employees with a wide range of medical benefits that its competitors do not.

However, these workers’ compensation perks do not come without a cost. We looked at several insurers, and Acuity had the highest average rates for workers’ compensation policies. It does, however, charge fair prices for other types of insurance, such as general liability.

#5. NEXT 

When you buy carpenter insurance from NEXT, you can choose to include tools and equipment coverage as well as general liability coverage. Consider purchasing extra policies, like workers’ compensation and commercial property insurance, to save money. 

Choose to work with NEXT because of its extensive network of licensed insurance agents who are always available to answer your questions and help you navigate your policy. Online tools make it easy for carpenters to get insurance quotes and policies in a matter of minutes. Workers’ compensation, liability insurance, and auto insurance are just a few of the many types of protection that Next seems to provides. 

#6. GEICO 

Carpenters can get a variety of coverage options from GEICO, including commercial vehicle, business owner’s policy, workers’ compensation, and general liability.  

If you are a carpenter looking for affordable insurance for your commercial vehicle, GEICO is the company to go with. This business provides customers with a variety of discount choices, including those for safe driving and CDL drivers.

#7. Hiscox

Hiscox only offers a general liability policy as part of their online carpenter’s insurance program. If you need insurance for your business, including general liability, commercial property, or a business owner’s policy, you will need to speak with a representative. 

Carpenters can purchase daily, monthly, or even hourly liability insurance from Hiscox. However, Thimble is covering the risk here. When purchasing daily, monthly, or hourly carpenter liability insurance from this business, you will be forwarded to Thimble’s online quote platform. 

They are a great option for nomadic carpenters, such as those who work across the border between the US and Canada or in the US territories. You can travel the world without worrying about losing coverage.

What Insurance Policies Do Carpenters Need?

  • Commercial General Liability
  • Commercial Property
  • Inland Marine Insurance
  • Workers Compensation
  • Commercial Auto.

How Can I Save on Carpenter Insurance? 

The best way for carpenters to save money on commercial insurance is to get quotes from multiple companies. Additionally, you can reduce the cost of your carpenter insurance by properly classifying your carpentry business.

What Are the Types of Carpenter Insurance?

  • Commercial General Liability Insurance
  • Commercial Property Insurance
  • Worker’s Compensation Insurance
  • Commercial auto insurance
  • Commercial Umbrella Insurance
  • Errors & Omissions (E&O) Insurance

What Risks Do Carpenters Face in Their Job?

Handling workpieces and utilizing tools or equipment poses the risk of a variety of injuries, including the potential for personal injury due to becoming entangled in moving parts or machinery, risk of eye injury from flying particles, etc. are some examples of risks that carpenters face daily in carrying out their duties

Carpenters should use safety precautions on the job, but even these will not keep everyone safe in all situations. Some circumstances are simply beyond the carpenter’s control.

Do Carpenters Need to Have Insurance?

It is not always necessary for carpenters to carry insurance. Workers’ compensation insurance is a must-have for any business with employees. But other than that, insurance is not needed unless your municipality mandates it as a condition of licensing. Keep in mind, though, that having insurance can open doors to more lucrative gigs and contracts.

What Kind of Insurance Do I Need as a Carpenter?

The risks you regularly face while running your business and the nature of your profession will both play a significant role in determining your premiums. Your insurance policy for your carpentry business will be unique due to several factors, including:

  • The size of your business
  • Your business’s location
  • Your annual revenue

Your carpentry business insurance covers a wide range of elements, such as:

  • Bodily injury
  • Accidents and damages
  • Employee injuries
  • Unintentional mistakes

Why Do Carpenters Need Business Insurance?

The tools and machinery on construction sites pose a significant risk to carpenters, making insurance a necessity for the profession. The carpenter is liable for any damages, whether they are the result of an accident or a claim. The carpenter could go bankrupt if the loss is substantial enough. 


Investing in carpenter’s insurance is a smart way to protect your business from unforeseen events. These policies shield you from the financial fallout of workplace mishaps and injuries that could otherwise severely impact your bottom line. An insurance agent or broker can help you set up and manage a comprehensive insurance plan that includes coverage for every facet of your business.

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