Carpenter Liability Insurance

What Types of Business Insurance Do Carpenters Need?

Finish carpenters perform new carpentry work as well as carpentry work for additions, alterations, maintenance and repairs. Some examples of typical finish carpentry work include the following:

  • Building and installing cabinets, molding or trim
  • Installing countertops and paneling
  • Constructing door and window frames
  • Crafting and installing millwork
  • Building staircases, railings and ornamental trim work

Most finish carpenters work from plans developed by a customer or a general contractor. Some finish carpenters may provide certain design services.

Finish carpenters face complex, costly risks every day — from project start to finish and even beyond. If an accident or some type of property damage occurs during a project, the losses can be costly and disruptive to your business.

How Risky is Finish Carpentry?

Finish carpenters face the potential for losses that include the following:

  • Property theft, vandalism, loss or damage
  • Income Loss
  • Employee illness, injury or death 
  • Liability claims 

Carpenters insurance helps you mitigate the costs related to employee injuries, equipment and materials damage, motor vehicle accidents, and more. Because every finish carpentry business is unique, your carpenter insurance needs are based on the size of your company, the number of employees you have and the type of work that you do.

Carpenters Insurance Overview

While you may not typically have customers or the general public on your premises, you still need general liability insurance for occasions in which your business is negligent and causes bodily injury or property damage to a third party.

  • Commercial general liability (CGL) protects you in the event of third-party lawsuits, with coverage for attorney fees, court costs, settlements and judgments up to the limits of your policy. Most carpentry businesses own multiple trucks or other vehicles to transport tools, equipment and workers to and from job sites.
  • Commercial auto insurance covers your owned vehicles and drivers in the event of an accident or other vehicle damage that occurs. Commercial auto insurance provides coverage for property damage and bodily injury liability claims, vehicle damage and medical bills, as well as any costs related to lawsuits due to auto accidents involving your vehicles. You may also want to talk to your independent insurance agent about your need for excess liability, or commercial umbrella, insurance.
  • Commercial umbrella insurance provides an extra layer of liability protection to any of several other liability policies you might have. Commercial umbrella insurance kicks in when the limits of your other applicable insurance policies have been exhausted, protecting you in the event that a claim exceeds the amount of coverage available from any other applicable policy.

Finish carpentry contractors also need to protect their valuable property and equipment.

  • Commercial property insurance covers your office space, warehouse or other buildings, and their contents for losses due to fire, theft, vandalism, weather events and more.
  • Property insurance also typically includes loss of income coverage, or business interruption insurance. It reimburses you for lost income and helps pay for certain ongoing expenses if you are temporarily unable to operate due to a covered loss (fire, storm, etc.).
  • Inland marine insurance is another form of property insurance that protects your equipment, tools, portable computer equipment and other supplies from theft, loss or damage while they are in transit to and from worksites.
  • Builders risk insurance is often included in an inland marine insurance policy. It provides coverage for damage, theft or loss of tools and equipment at a worksite, as well as for structures that are under construction that are damaged by fire, wind, hail or other covered perils.

Protect Your Employees With Workers' Compensation Insurance

Keeping your employees safe from work-related injuries and illnesses is important for your employees’ long-term health and satisfaction as well as your company’s financial viability. Excessive employee injuries and illnesses can be financially devastating for your business.

Workers’ compensation insurance provides coverage when accidents happen at the workplace. It ensures that the injured worker gets medical care and income protection while unable to work.

Workers’ compensation insurance provides benefits to injured workers regardless of who is at fault for their injury. And it provides death benefits for a worker’s dependents if there is a fatality.

A Note About Contractors Bonds

Finish carpenters, like most other types of contractors, may need a variety of contractors bonds, or surety bonds, for every project that they work on. Contractors bonds are often essential for finding, securing and performing work for many types of construction projects that you might work on. They may be required by a project owner in order for your bid to be accepted, and they typically guarantee some aspect of the bidding process and the contract.

There is a variety of different types of surety bonds, including bid bonds, performance bonds, payment bonds, license and permit bonds, and maintenance bonds. Every bond is unique and tailored to a specific project.

Do Carpenters Need Professional Liability Insurance? 

New approaches to building and building projects are leading to an increased necessity for all kinds of contractors — including finish carpenters — to explore the need for professional liability coverage. As carpenters and other contractors increasingly take part in the design process, their exposure to professional liability claims increases as well. If you take on design responsibilities or even subcontract to a design firm, the ultimate responsibility for advising clients during a project’s design phase may lie with you.

Professional liability insurance, or errors and omissions insurance, covers professionals, their partners, their employees, and the partnership or corporation for damage caused by providing or failing to provide professional services. You can be sued for providing erroneous advice or services, acts of negligence, or even omissions.

Most professional liability policies can be tailored to the exposures faced by your business. Professional liability insurance covers your defense costs as well as any settlements or judgments that you must pay if you are sued.

The best way to determine if you need carpenters professional liability insurance is to talk with your Trusted Choice agent. An independent agent who has experience working with finish carpenters can help you assess your needs and find the right policies to protect your assets.

Find Carpenters Insurance Tailored to Your Needs

You need tailored finish carpenter insurance that addresses all of your risks and protects your assets. An experienced Trusted Choice insurance agent can help you develop and implement appropriate safety and loss control programs that help prevent the worst from happening. Find a local independent agent now.



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