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How much does business insurance cost for carpenters?

Carpenter insurance costs are determined by your coverage limits, deductibles, types of policies purchased, and several other factors. Save money on small business insurance by comparing quotes from different providers with TechInsurance.

Key carpenter insurance policies and their expected costs

Here are the top business insurance policies bought by carpenters and their average monthly costs:

Our figures are sourced from the median cost of policies for carpenters who apply for quotes with TechInsurance. The median provides a better estimate of your expected insurance rates because it excludes outlier high and low premiums.

General liability insurance icon

General liability insurance for carpenters

Carpenters spend an average of $85 per month, or $1,020 per year, for general liability insurance. Though usually not required by law, a general liability policy may be needed in order to sign a lease, get licensed in their state, or work with some clients.

General liability coverage protects your small business from common third-party risks, such as customer property damage or bodily injury. It also pays for lawsuits related to copyright infringement and defamation, including slander and libel.

For example, if a competitor claims that a subcontractor at your carpentry company made disparaging comments about them online and decides to sue, a general liability policy would pay for any legal costs, helping you to avoid financial loss.

Below is the average general liability insurance policy for carpenters who buy from TechInsurance:

Premium: $85 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

If your business is small and low-risk, TechInsurance's licensed agents usually recommend a business owner’s policy. A BOP bundles general liability insurance with commercial property insurance at a lower cost than buying these policies separately.

The cost of general liability insurance is based on several factors, including the types of services offered, policy limits, size and location of your business, and any subcontractors or additional insured endorsements you may have.

Business owner’s policy icon

Business owner’s policy for carpenters

On average, carpentry businesses pay $116 per month, or $1,397 per year, for a business owner's policy (BOP).

A BOP combines your general liability and commercial property insurance coverage together at a discount. It protects your small business against both property and liability risks, such as stolen business property or client bodily injury.

This is the average business owner's policy for carpenters who buy from TechInsurance:

Premium: $116 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $1,000

Carpentry companies that qualify for a BOP usually are small in size (less than 100 employees) and low-risk. Learn more about business owner's policy eligibility requirements.

The cost of a business owner's policy depends on factors such as the policy limits you choose, the size of your business, your location, and the value of your commercial property.

Workers’ compensation insurance icon

Workers’ compensation insurance for carpenters

Carpenters spend an average of $282 per month, or $3,388 annually, for workers' compensation insurance. To comply with state laws and avoid penalties, carpentry businesses with one or more employees typically are required to purchase this policy.

Workers' comp coverage pays for medical costs and disability benefits when you or an employee suffers a work-related injury or illness. For example, if an employee has an accident with a nail gun and injures themselves, a workers' comp policy would pay for their medical bills and lost income while they recover.

Workers' compensation coverage also usually includes employer's liability insurance, which pays for defense costs and other legal fees in the event of a lawsuit related to workplace injuries.

Even though workers' comp may not be required for sole proprietors or independent contractors, it is highly recommended since most health insurance plans can deny claims for injuries that occur at your jobsite.

It is important to note that some states require sole proprietors and independent contractors in the construction industry to obtain coverage even if they work alone.

The cost of workers' comp is based on numerous factors, including the number of employees you have and their occupational risks.

Contractor’s tools and equipment coverage icon

Contractor’s tools and equipment insurance for carpenters

Carpentry companies pay an average of $14 per month, or $169 yearly, for contractor’s tools and equipment insurance.

A type of inland marine insurance, contractor's tools and equipment coverage pays for the repair or replacement of lost, stolen, or damaged tools and business equipment. This policy is designed to protect gear that is on-the-go, covering equipment that is less than five years old and valued at under $10,000.

The cost of contractor's tools and equipment coverage depends on the value of your tools and equipment, how regularly items are transported from one worksite to another, and your industry risks.

Professional liability insurance icon

Professional liability insurance for carpenters

On average, construction businesses and contractors pay $65 per month, or $785 per year, for professional liability insurance.

Also called errors and omissions insurance (E&O), professional liability insurance pays for legal costs related to a mistake, missed deadline, or other accusation of professional negligence. This includes attorney's fees and other legal expenses if a client decides to sue over unsatisfactory work.

This is the average insurance policy for construction professionals who purchase from TechInsurance:

Premium: $65 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $1,250

The cost of professional liability insurance is determined by several factors, including the coverage limits and deductible you choose, the size of your business, the type of carpentry work you do, and your claims history.

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Umbrella / excess liability insurance icon

Commercial umbrella insurance for carpenters

Carpenters pay an average of $83 per month, or $1,000 yearly, for commercial umbrella insurance. This policy helps boost the coverage limits of your underlying general liability, commercial auto, or employer's liability insurance.

When the underlying policy reaches its limit on an insurance claim, an umbrella policy activates to help provide any additional coverage that is needed. It usually boosts your liability limits in $1 million increments.

The cost of commercial umbrella insurance depends mostly on the amount of coverage you buy.

Builder’s risk insurance icon

Builder's risk insurance for carpenters

Carpenters pay an average of $83 per month, or $999 annually, for builder's risk insurance.

Also known as course of construction insurance, builder's risk coverage helps pay for damaged construction materials and structures in progress. This could be due to fire, vandalism, and non-severe weather.

The cost of builder's risk insurance depends on the total completed value of the structure, and other construction project factors like materials and labor.

Commercial auto insurance icon

Commercial auto insurance for carpenters

Carpenters spend an average of $160 per month, or $1,915 per year, for commercial auto insurance. Almost every state requires this type of insurance if your carpentry business owns any company vehicles.

If your business vehicles are involved in an accident, a commercial auto policy would help cover property damage costs and any medical expenses. This coverage also helps pay for costs related to vandalism, weather damage, and theft.

To protect personal, rented, and leased vehicles used for business purposes, you'd need hired and non-owned auto insurance (HNOA) instead.

The cost of commercial car insurance depends on many factors, including your employees' driving records, policy limits, the number of vehicles you own and their value, and your coverage options.

Surety bond icon

Surety bonds for carpenters

The average cost of a surety bond is $8 per month, or $100 annually, for carpentry businesses.

Surety bonds protect your clients by reimbursing them in the event that your business is unable to fulfill the terms of a contract or agreement. For this reason, you may be required to obtain a surety bond in order to sign a client contract or get licensed in your state.

The cost of a surety bond is a certain percentage of the total bond amount. Unlike most insurance policies, this amount must be paid back to the company that issued the bond.

How do I get affordable carpentry insurance with TechInsurance?

TechInsurance makes it easy for carpenters, general contractors, handyman businesses, and other construction professionals to obtain affordable business insurance in three easy steps:

  1. Fill out a free online insurance application with details about your business.
  2. Compare custom quotes from top-rated U.S. insurance companies in real-time.
  3. Choose the best policies for your business and pay the premiums to begin coverage.

TechInsurance's licensed insurance agents are available to help answer questions about your liabilities, state insurance requirements, and the best types of coverage for your business needs.

Once you've bought the policies you need, you can download a certificate of insurance for proof of coverage. Small business owners can usually get insured within 24 hours of applying for quotes.

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