Carpenter Liability Insurance
Carpenters need protection against lawsuits from customers and other third parties.
Written by
Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.
Reviewed by
Paul Martin is the Director of Education and Development for Myron Steves, one of the largest, most respected insurance wholesalers in the southern U.S.
With hammers, bandsaws, and other potentially dangerous equipment in use, of course there are potential risks to be concerned about. If you’re a professional carpenter, that’s just about every minute of your day. Due to the inherently risky nature of your work, you've got to be equipped with the right protection against potential lawsuits.
Luckily, an independent insurance agent can help you get set up with the right kind of carpenter liability insurance. They’ll explore the ins and outs of your operation and connect you with the coverage you need to keep it all protected. For starters, though, here's a breakdown of carpenter liability insurance and why it's necessary.
How Risky Is the Carpentry Business?
Like any other type of professional, carpenters face dozens of risks on a daily basis. Here are just a few that carpenters commonly face:
- Property theft
- Vandalism
- Equipment damage
- Income loss
- Employee illness, injury, or death
- Lawsuits
Having the right insurance can help mitigate the costs related to employee injuries, equipment and materials damage, motor vehicle accidents, lawsuits, and more. Every finish carpentry business is unique, and your insurance needs must be tailored to the size of your company, the number of employees you have, and the type of work you complete.
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What Does Carpenters Insurance Cover?
Insurance for carpenters takes the unique operations and risks of the carpentry business into consideration from many different angles. A carpenter's insurance policy can vary depending on their specific needs, but in general, you can expect carpenter insurance to include some or all of the following types of coverage:
- Commercial general liability insurance: Protects you from third-party lawsuits by providing coverage for attorney fees, court costs, settlements, and judgments up to your policy limits.
- Commercial auto insurance: Covers costs related to lawsuits, accidents, or other incidents involving company vehicles.
- Commercial umbrella insurance: Provides an extra layer of liability protection to various policies you might have, such as general liability insurance, and can extend your limits up to $1 million or more.
- Commercial property insurance: Covers your office space, warehouse or other buildings, and contents for losses due to fire, theft, vandalism, weather events, and more.
- Business interruption insurance: 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: Protects your equipment, tools, portable computer equipment, and other supplies from theft, loss, or damage while in transit to and from worksites.
- Builders risk insurance: Provides coverage for damage, theft, or loss of tools and equipment at a worksite, as well as for structures that take on covered damages while under construction.
Working with an independent insurance agent is a great way to ensure you get a complete carpenter insurance policy that covers everything you need it to.
Protect Your Employees with Workers' Compensation Insurance
Keeping your employees safe from work-related injuries and illnesses is essential for both their long-term health and your company’s financial success. Excessive employee injuries and illnesses can be financially devastating for your business. Workers' compensation insurance covers lost wages and medical treatment related to employee injuries and illnesses caused by job duties or the work environment.
Workers' compensation insurance provides benefits to injured workers regardless of who's at fault for their injury and prevents workers and their families from being able to sue your company for these incidents. It also provides death benefits for a worker’s dependents if there is a fatality. Workers' comp is an essential type of insurance for carpenters.
A Note about Contractor Bonds
Finish carpenters, like most other types of contractors, may need a variety of contractor bonds, or surety bonds, for certain projects they complete. Contractor bonds are often essential for finding, securing, and performing work for a number of construction projects. They may be required by a project owner for your bid to be accepted and usually guarantee an aspect of the bidding process and contract.
There are many different kinds of surety bonds, including bid bonds, performance bonds, payment bonds, license and permit bonds, and maintenance bonds. Each one is unique and tailored to a specific project. Most insurance agents who help contractors can also help with their bond needs. Ask your independent insurance agent about getting any contractor bonds you may need.
Do Carpenters Need Professional Liability Insurance?
New approaches to building and building projects have created a greater need for all kinds of contractors, including finish carpenters, to get set up with the right professional liability coverage. As carpenters and other contractors continue to play a stronger role in the design process, their exposure to professional liability claims increases. If you take on design responsibilities or subcontract to a design firm, the ultimate responsibility for advising clients during a project’s design phase may fall on you.
Professional liability insurance, also called errors and omissions insurance, covers professionals, their partners, their employees, and the business itself for damage caused by their services or advice given to the public. Your business could get sued for providing incomplete or inaccurate advice or services, acts of negligence, or omissions.
Professional liability insurance covers your defense costs and any settlements or judgments you must pay if you get sued. Most policies can be tailored specifically to the exposures faced by your business. The best way to determine if you need carpenter professional liability insurance is to talk with an independent insurance agent who can help assess your unique needs and find the right policies to protect your assets.
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The Benefits of Working with an Independent Insurance Agent
Independent insurance agents can help you find the right policy from a local carpenter insurance agency. They'll get you matched to the policy that offers the best blend of coverage and cost. Because they're independent, these agents are free to shop and compare quotes from multiple insurance companies for you. They work for you, not the insurance agency.