If you are a carpenter, it’s likely that you’ve put years of effort into training for and obtaining your contractor’s license. You’ve also learned how to manage your small business, whether as an independent contractor or part of a company, and have come to see the importance of having insurance.
Business insurance for carpenters is an important tool that gives you a valuable layer of protection against the costs of damage to a client’s home, your tools, or even paying for injury, should the worst happen. The process of finding quality business insurance involves a few steps, like learning about your options, the costs of insurance, and signing up with the right company.
- The 4 Best Carpenters Insurance Companies
- What kind of insurance does a carpenter need?
- What is carpenter tool insurance? and where to get it?
- How Much does Carpenter Insurance Cost?
The 4 Best Carpenters Insurance Companies
Finding business insurance for carpenters is a challenge, especially with all of the providers on the market. It can be hard to tell which company is the best one to meet your specific needs. If you are looking for a place to start, consider checking out these four insurance companies, each with a unique feature that benefits business owners.
- CoverWallet – Best for Comparing Online Quotes
- Progressive Insurance – Best for Discounts on Automotive Insurance
- Next Insurance – Best for Easy Online Coverage
- Hiscox Insurance – Best for Worldwide Coverage
CoverWallet – Best for Comparing Online Quotes
If you are looking for a few different quotes on business insurance for carpenters in one spot, consider using CoverWallet’s online form. They are an insurance broker, helping you get signed up with the best insurer for your needs in just a few minutes. The website states you can get general liability insurance for as low as $39 a month.
After filling your personal information, they will provide you with several quotes from their partners so that you can compare and select the best one for you. If you like to compare online quotes without having to shop around on different companies’ websites, this is probably the best way.
When you fill in their quote form, they also advise you which kind of insurance you might need as a carpenter depending on the type of firms you work for and the size of your firm. If you are new in buying carpenter insurance, you might find this very useful.
After buying a policy through CoverWallet, you will be able to use their digital dashboard with a lot of great features from downloading the certificate of insurance to filing a claim and renewing the policy.
Progressive Insurance – Best for Discounts on Automotive Insurance
Everyone is familiar with Progressive for their automotive insurance plans, but they have also branched out to other types of insurance by partnering with third party providers. You can save money on commercial automotive insurance by bundling business insurance policies with Progressive. The discount averages between 10% – 15%.
Progressive is a great option for carpenters who want to get commercial auto insurance and bundle with other business insurance policies such as general liability insurance and carpenters tool insurance.
Next Insurance – Best for Easy Online Coverage
Sometimes, you need proof of insurance quickly to show to a client that you are covered before they hire you for a project. That’s what makes Next Insurance a great option for contractors. Carpenters can get a quote online right away and sign up online for insurance in just a few minutes. Next appears to offer a wide range of insurance coverage, including worker’s compensation, professional liability, and automotive insurance.
Hiscox Insurance – Best for Worldwide Coverage
A specialist insurance company serving businesses large and small around the world, Hiscox Insurance has been in business for over 100 years. They are a good choice for carpenters who travel to different locations, perhaps between the United States and Canada or around the U.S. Commonwealths. You’ll have coverage no matter where you are in the world.
What Kind of Insurance does a Carpenter Need?
Business insurance for carpenters does tend to be a broad term that covers a wide scope of policy coverage. Carpenters, like those in any other specialist profession, should get business insurance to protect themselves from lawsuits, settlement costs, and the costs associated with replacing their assets and income. Perhaps the most essential coverage is general liability, which pays out on third party injuries and property damage. For instance, you may accidentally damage the roof while framing out a home addition for a client. General liability will help cover the cost of repairing the damage to the roof.
>>MORE: Cheap General Liability Insurance for Contractors
There are several business insurance policies that a carpenter might need. Below are a few common ones:
General Liability Insurance: This insurance is intended to provide protection in case a client’s or another person’s home is damaged, or someone is injured in an accident caused by you. For example, if you deliver a wooden table that you just finished to your client’s home and accidentally broke an expensive decorative vase, a general liability insurance will provide coverage for that.
Commercial Property Insurance: If you have a business location, like a shop or store front, this insurance can help cover damage to your building, equipment, or tools. If you are a carpenter and operates your business out of a workshop. Unfortunately, a fire burns down everything in your workshop, a commercial property insurance policy would pay for the damages from the fire.
However, if someone slips and gets injured in your workshop, a general liability insurance would provide protection for that.
Commercial Automotive Insurance: Make sure your commercial truck or van is covered with automotive insurance that will pay for damage to the vehicle, another person’s vehicle, and or that covers bodily injury.
Inland Marine Insurance: When your carpentry equipment is broken or lost while traveling to another client’s home or while at a worksite, inland marine can help with replacement costs.
Professional Liability Insurance: It may be a good idea to carry professional liability insurance in case a client sues over poor or incomplete work done on a project.
Worker’s Compensation: If you employ other carpenters, your state may require that you obtain worker’s compensation to cover payments to these workers in case they are injured on the job.
What is carpenter tool insurance? And where to get it?
The tools that a carpenter is using for his job might cost a lot of money. Carpenters usually invest in having good quality tools to support their work. They usually bring these carpenter tools with them to the job site, which means that the carpenter tools often travel from one job site to the next or stay in one job site for a few days or even weeks.
To protect these carpenter tools, carpenters should get a carpenter tool policy or inland marine policy. An inland marine policy essentially covers products, materials, and equipment or tool when being transported over land, ie. cars, trucks, or vans and while being temporarily stored in a third party location.
Inland marine is a popular insurance policy for independent contractors and general contractors. Many business insurance companies offer this insurance product. You can inquire for an additional policy at the 4 companies we recommended above: CoverWallet, Progressive, Hiscox, and Next Insurance.
How Much does Carpenter Insurance Cost?
Insurance costs vary quite a bit for carpenters depending on what kinds of coverage they obtain, their risks, and where they live. If you own a business that employs multiple people, you’ll also pay more for coverage on each employee. Those who are independent contractors will also pay less simply because they are only covering themselves and may have the option to get the bare minimum.
According to Insureon, the median cost of just getting general liability insurance is less than $70 a month for a $1 million policy limit. This is an incredibly affordable option and provides a great deal of peace of mind for independent contractors. If you are seeking insurance for a handyman, the median monthly premium is about the same at $65 per month.
Meanwhile, contractors may pay between $500 to $2,500 per month for worker’s compensation. Of course, worker’s compensation insurance for independent contractors isn’t necessarily required by the state where you are based in, but it can provide essential protection if you are injured on the job.
In order to get the best price for your carpenter insurance policy, you need to shop around with some companies or a digital broker like CoverWallet so that you can compare several quotes before selecting the best one.
>>MORE: Four Best Roofing Insurance Companies
Is carpenter ant damage covered by homeowners insurance?
No, home owners insurance doesn’t cover damages caused by termite or pests like carpenter ants. The only exception, which is not guaranteed, is that the home owners insurance policy might cover damages when pests chew through a wire to cause fires.
Home owners insurance policy vary by companies with many inclusions and exclusions. You need to review your own policy carefully if your policy has above mentioned coverage.
Final Thoughts
- Several kinds of insurance coverage are recommended for carpenters, including general liability, professional liability, commercial automotive, inland marine, and worker’s compensation.
- Business insurance for carpenters is easy to find through online providers, such as Next Insurance and CoverWallet. You can also find it through traditional insurers, like Hiscox and Progressive.
- Your insurance premiums will vary a lot depending on what coverage you add onto your policy, your company size, and your location.
