Do carpenters need business insurance?
Carpenters get paid to provide goods and services to customers. And with that, comes risk. When it comes to risk, there’s nothing better than having insurance.
What insurance coverages are best for carpenters?
Carpenters’ work is physical. You work with your hands to build things. Your work environment isn’t nearly as safe as working in a cubicle. That’s why we highly recommend general liability insurance and workers’ compensation insurance. Aside from lumber, these policies are a carpenter’s best friend.
What’s general liability insurance?
General liability insurance is a nice blanket of coverage for the various things that can go wrong when doing business. It’s especially important for carpenters.
Coverage benefits include:
- Property damage: You crack a customer’s marble countertop while installing new cabinetry.
- Bodily injury: If you overlooked a nail when you were cleaning up for the day, and your customer steps on it when walking to the kitchen for a late-night snack.
- Personal/advertising injury: You get caught bad-mouthing your client in public, and they claim slander.
- Legal fees, court costs, and lawyers’ fees are also included in this policy, should you face a lawsuit.
How about workers’ compensation?
Workers’ compensation insurance is a very important policy for carpenters. Why? Because it protects you and your employees should someone get hurt or sick on the job.
Coverage benefits include:
- Medical costs due to illness or injury caused by work duties
- Recovery and return to work services
- Employers liability coverage, should an employee file a lawsuit
- Reimbursement for lost wages
Are there other insurance policies carpenters should consider?
We recommend you consider a few other policies that are a great fit for carpenters.
- Business property: Protect your tools and other commercial property from things like fire, theft, vandalism, and natural disasters. Your tools are your investment, and if you have to replace them without insurance, it’s just money out of your pocket. Note: If you store your work tools at your house and something happens to them, your homeowners policy usually only covers up to $500 in business property damages.
- Inland marine: If you do have business property insurance, keep in mind that if your work gear leaves the business premises (past 500 feet), the coverage ends. At that point, you will want inland marine insurance, which protects your items in transit.
- Business auto: Carpenters are always on the go, traveling from job sites, to hardware stores, and more. Business auto insurance protects vehicles owned by your business.
- Hired & non-owned auto: This policy covers your business should any vehicles that work on behalf of your business get in an accident. This pertains to vehicles you hire, borrow, or rent. It also includes employees’ personal vehicles while being used for work-related errands.