Whether you’re an independent carpenter or a crew supervisor, protecting your work from liability is critical to keeping your business running smoothly. Just one incident involving property damage, medical bills or legal fees can stop operations.
Getting the right insurance can help protect your business and show customers that you’re serious about your work. Insureon’s licensed agents work with top-rated U.S. providers to find the coverage you need for your specific carpentry business.
1. General Liability
Your company is safeguarded by general liability insurance from claims of property damage and bodily harm. It may also help pay legal costs and compensation if someone sues you because of your work.
For example, if you’re working on a house extension and a client trips over the cord of an electric sander, this could result in an accident that causes head injuries. Moreover, if your company’s carpentry services cause damage to another person’s property, your general liability insurance could cover medical expenses and legal fees that result from the lawsuit.
Lastly, your policy should include product and completed operations coverage. This coverage helps cover the cost of repairing or replacing a product that you deliver to a customer, including furniture, cabinets and other custom-made items.
Your policy should also have personal injury protection, which covers injuries caused by libel and slander. This coverage could come in handy if your company’s marketing material hurts the reputation of a third party.
2. Workers’ Compensation
Carpenters are exposed to several risks when they work with clients on construction projects, including property damage and personal injury. General liability insurance provides coverage in these cases, but workers’ compensation insurance is a critical policy for carpenters to consider.
Many states require employers to carry workers’ compensation insurance to cover medical expenses and a portion of lost wages when an employee is injured on the job. This is especially important for contractors and other businesses that use independent contractor or leased employees who are not classified as employees under state law.
Workers’ compensation laws in New York are strict and employers and insurance companies regularly find reasons to deny claims, so it is essential that you purchase the right level of coverage for your business. Workers’ comp can also help cover funeral and burial costs for the family of an employee who dies in a workplace accident.
3. Commercial Auto
If you own a carpentry business and regularly use your vehicle for work purposes, you should consider commercial auto insurance. Unlike personal auto insurance, which covers any type of vehicle on the road, commercial auto coverage is designed specifically for vehicles used in business operations.
It offers liability and physical damage protection for a wide range of cars, trucks, vans and other commercial vehicles. The commercial auto policy you purchase will be customized to your business’s needs, including the number of vehicles you drive, their value, the frequency they are driven and your industry.
Commercial auto insurance includes bodily injury liability, property damage liability and uninsured motorist coverage (UM/UIM). The insurance company will also help pay medical expenses or repair your property if you or an employee are injured in an accident while driving your business car or truck.
You should also purchase hired auto or employer’s non-owned liability, which provides liability protection for your company’s business vehicles that are owned by others but used for your business purposes. It can be purchased as an add-on to your commercial auto policy or separately.
4. Commercial Umbrella
As a contractor, you may face expensive legal and medical expenses if you are sued. These costs can be catastrophic for your business and can derail your financial success. Commercial Umbrella insurance is a way to mitigate these risks and provide additional protection.
It provides added coverage when your standard liability policy’s limits are reached by a lawsuit or accident. In addition, it provides an extra layer of protection in the event that your business is sued by a client or customer.
You can also use it to satisfy contract requirements requiring a certain level of insurance limits. For example, if you are a contractor working on a new shopping center, you might have a contract that requires a $3 million per occurrence limit for general liability and auto liability policies.
You can increase your Commercial Umbrella insurance limit to match your underlying general liability and auto liability limits. As a result, when those policies are exhausted, your umbrella policy will pay the excess, up to the amount you purchased.
5. Business Owner’s Policy (BOP)
A Business Owner’s Policy (BOP) is a convenient way to insure your building, equipment, inventory and more against the unforeseen. It combines both business property insurance and general liability insurance into one convenient policy that can be tailored to your unique business needs.
BOPs are typically a good fit for small businesses, such as retail stores, barber shops, beauty parlors, fitness centers and restaurants. Small contractors, such as those that perform residential construction, landscape or carpentry, may also be eligible for a BOP policy.
Costs for a BOP vary based on the underwriting factors of your business and the additional coverages, referred to as endorsements, that you choose to add. Typical factors that will add to your premium include your claim history, the size of your primary location and the replacement cost of your business property and equipment.
At Colstan & Associates, we can work with you to customize a BOP that is just right for your business. We’ll help you identify your risks and recommend the best type of coverage for you.
6. Business Interruption
Business interruption insurance helps pay for lost income while you’re closed for an unexpected period. It also covers the cost of hiring temporary employees to keep your business running.
The type of business you own and the industry you’re in can influence the amount you need to insure. For example, an architecture firm that needs to close for renovations would likely need more coverage than a small framing contractor.
In addition to covering loss of revenue, business interruption policies can also cover extra expenses, such as employee training costs or relocation expenses. They can also help pay for the rent, mortgage or loan payments you would have made while your business was shut down.
Whether you have an established carpentry business or are just starting up, you should invest in business interruption insurance. It’s not uncommon for the business you own to become a victim of fires, storms or other disasters that disrupt operations.
7. Property Insurance
Property Insurance protects your business from damage and loss of your building, other structures on your property, and the belongings that are kept inside. This coverage can be tailored to your specific needs, and it helps keep your carpentry business running smoothly.
Carpenters often use heavy tools and equipment while working on projects, and this can lead to physical accidents that can result in damages or injuries to customers’ property or their belongings. These incidents can be costly for your business if you don’t have the right type of insurance in place.
The cost of carpentry insurance for a professional tradesman or contractor varies based on the value of the assets that are covered, your business risks, and other factors. You can save money on your premium by bundling general liability and commercial property insurance in a business owner’s policy (BOP), or by purchasing a separate policy that provides only the essential coverage that you need.
The best way to get a good rate on your carpentry insurance is to work with an independent agent who understands the specific needs of a business like yours. They can help you find the right policy at the right price for your needs, and they can also offer valuable insights on how to reduce your premium and which coverage limits are best for you.
8. Commercial Crime Insurance
If you own a carpentry business, commercial crime insurance may be a wise investment. This coverage reimburses you for losses resulting from crimes such as fraud, forgery or theft.
If your employees are stealing from clients or your company, you could face costly legal costs and the loss of valuable assets. To get the best deal on commercial crime insurance, ask your agent about coverage options that suit your needs.
You can add crime to your general liability policy or purchase it as a standalone policy. You can also get it bundled with a business owner’s policy (BOP).
Commercial crime insurance provides coverage for direct monetary and property losses. It usually operates on a “named perils” basis, meaning that the specific losses that qualify for coverage are listed in the policy.
In conclusuion:
Carpentry insurance is a vital part of running a carpentry business. It can help protect your business against losses incurred from an accident, property damage, or lawsuit.
The best way to get the right insurance for your carpentry business is to compare policies from several insurers. This will give you the most options and save you the most money.
General liability:
This policy is the most common type of carpentry insurance and protects you against third-party bodily injury and property damage claims filed by clients or other third parties on your job site. This can be an expensive policy, but it’s also an essential coverage that every contractor should carry.
Public liability:
This policy is another important insurance for carpenters and helps protect you against claims of bodily injury or property damage made by clients or other third parties while they’re on your job. It covers a wide range of injuries, including those caused by flying debris and falling tools.
Professional liability:
This policy, also called errors and omissions insurance (E&O), is an important carpentry insurance policy that can be combined with a general liability insurance policy for increased savings. It can protect your business against client lawsuits claiming unsatisfactory, negligent, late, or incomplete work.
Commercial property:
This is another important insurance for carpenters and protects your business against losses from fire, vandalism, water damage, and theft of tools or equipment. It can also help pay for your shop’s contents, including the materials and finished products you use to complete your projects.
