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Carpenter Business Insurance

Carpentry Services
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TechInsurance connects you with a licensed insurance agent who knows the carpenter insurance industry. Get quotes for the best coverage with one easy online application.

6 policies every carpenter should consider

Clients, landlords, or state laws may require insurance for a carpenter. These insurance coverages defend carpentry small business owners against common lawsuits and other top risks.

General liability insurance

General liability insurance icon

A general liability insurance policy protects carpenters against legal expenses related to client property damage and injuries. It's often required by commercial leases and contracts.

  • Client bodily injuries
  • Damaged customer property
  • Advertising injury and copyright lawsuits

Business owner's policy

Business owner’s policy icon

A BOP bundles commercial property insurance and general liability coverage at a discount. It's often the most cost-effective type of business insurance for carpentry and woodworking businesses.

  • Accidental client injuries
  • Accidental damage to client property
  • Libel, defamation, and copyright lawsuits

Workers' comp insurance

Workers’ compensation insurance icon

Most state laws require a carpenter business with employees to carry workers' comp to help cover workplace injuries. In some states, even sole proprietors who work in construction must have this policy.

  • Medical expenses from work injuries
  • Disability benefits
  • Lawsuits from workplace accidents

Commercial auto insurance

Commercial auto insurance icon

Carpenters with business-owned vehicles must carry commercial auto coverage to comply with state laws. It helps pay for financial losses in an accident, including legal costs and property repairs.

  • Auto accident injuries
  • Auto accident property damage
  • Vandalism of a carpenter's vehicle

Contractor's tools and equipment

Contractor’s tools and equipment coverage icon

A type of inland marine insurance, this policy protects your carpentry tools and equipment wherever you bring them. That includes items in transit, stored off-site, or used at a job site.

  • Equipment that is less than five years old
  • Items valued at under $10,000
  • Tools that travel to carpentry projects

Professional liability insurance

Professional liability insurance icon

Professional liability insurance covers legal fees related to a mistake, missed deadline, or other accusation of professional negligence. It's also called errors and omissions insurance (E&O).

  • Project delays and budget overruns
  • Wrong materials and other mistakes
  • Breach of contract

How much does carpenter insurance cost?

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Here's a quick look at the average costs of common carpenter insurance policies purchased by TechInsurance customers:

General liability: $80 per month
Business owner's policy (BOP): $98 per month
Workers' compensation: $254 per month

Factors that can influence your premiums include:

  • Types of carpentry services offered
  • Number of employees you have, including subcontractors
  • Types of insurance purchased
  • Policy limits and other coverage options (e.g., additional insureds)
  • Claims history

Start a free application to see how much insurance will cost for your business.

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Why carpenters choose TechInsurance

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Get insurance fast so you can get started working with clients. Fill out our easy online application, choose a policy, and pay online to start coverage today.

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Get insured quickly with TechInsurance
Get insurance fast so you can get started working with clients. Fill out our easy online application, choose a policy, and pay online to start coverage today.
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Common questions about business insurance for carpenters

Find answers to frequently asked questions about carpenter insurance.

What other types of coverage do carpenters need?

Depending on the type of carpentry work you do, you may have additional insurance requirements and will need more types of coverages.

A complete risk management plan for a carpentry project might include:

  • Builder's risk insurance: Also called course of construction insurance, this policy helps pay for damage to a structure in progress and construction materials.
  • Inland marine insurance: Commercial property insurance only covers items at your business address, so you may need inland marine insurance for items in transit or at a job site. Coverages include contractor's tools and equipment insurance and installation floater insurance for materials awaiting installation.
  • Commercial umbrella insurance: When your underlying general liability, commercial auto, or employer's liability policy reaches the limit on a claim, umbrella insurance activates to provide additional coverage.

Do carpenters need a license, permit, or bond?

The requirements for licenses, permits, and bonds depend on the type of carpentry and contractor work you do and the laws in your state. For example:

  • You may need a license to do certain types of work, including carpentry and/or electrical work. These requirements differ by state.
  • You might need a permit for a specific project. For example, building a structure of a certain height, or converting one type of room into another, could require a permit. Again, this depends on your state laws.
  • Bonds help you secure contracts. Several types of surety bonds are common in construction, including bid bonds, performance bonds, and payment bonds. They act as a guarantee that you'll fulfill the terms of a contract. You may need one to bid on a project, apply for a license, or work with a specific client.

In many cases, your insurance needs are determined by licenses, permits, and bonds. For example, most general contractors often need to buy commercial general liability insurance in order to get licensed in their state.

Why is it important for carpenters to keep continuous coverage?

Buying temporary, short-term policies like carpenter liability insurance per a project may seem like a good idea. However, there are several reasons and benefits for maintaining continuous coverage:

  • Insurers increases their rates when you start and stop coverage. Insurance companies like consistency. If you cancel a policy, they might be unwilling to sell you another policy, or decide to charge more for the same coverage.
  • Some policies won't provide coverage for a project after you cancel them. Claims-made policies, such as professional liability insurance, only cover claims made while the policy is active. If you're sued for a completed project after you've canceled coverage, you won't be covered—even if you were insured while you did the work.
  • You could lose your license. Some professional licenses require insurance, which means you're at risk of losing your license if you cancel your policy. It might be difficult or even impossible to get the license back, depending on the circumstances.

Remember, you're responsible for any business-related losses while you don't have commercial insurance. That includes: