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What is carpenter insurance?

If you’re a carpenter, you know that your job is full of risks – from handling sharp tools to working at heights, not to mention the value of the custom work you’re delivering to clients. That’s where carpenter insurance comes into play. It’s a specialized type of business insurance designed to protect your livelihood from the unique risks carpenters face daily.

Carpenter insurance is essential for anyone working in carpentry. It provides coverage for various risks associated with the job, such as accidents, property damage and theft. Essentially, it acts as a safety net, so you don’t have to pay out of pocket for unexpected issues that arise while you work.

What carpenter insurance includes

Carpenter insurance typically includes several types of coverage to protect you in different scenarios. Here’s a breakdown of what’s usually covered:

• Commercial general liability insurance: This is the primary coverage, and it helps pay for costs if you accidentally injure someone or damage their property while working. For example, if you accidentally break a window, this coverage will cover the repair costs.
• Professional liability insurance: This covers legal fees and potential damages if a client sues you over unsatisfactory work or negligence. For instance, if a client claims your bookshelf is crooked, this insurance will protect you.
• Tools and equipment insurance: This covers your tools and equipment against theft, loss, or damage. If someone steals your saw or damages your drill, this insurance will help you replace or repair your gear.
• Installation floater insurance: This policy protects materials you’re working with from damage before the job is completed. If a storm destroys the wood you’re about to install, the installation floater will cover the replacement costs.

Recommended add-ons for carpenter insurance

To enhance your coverage, consider these add-ons:

• Commercial auto insurance: If you use a vehicle for your business, this insurance covers it while you’re driving for work. You will need this add-on for your work vehicle, as standard personal car insurance does not cover vehicles that are used for business.
• Pollution liability insurance: If you use chemicals like paints or solvents, this policy covers environmental damage caused by these substances.
• Cyber liability insurance: If you store client data on your computer, this insurance protects you against data breaches or hacking incidents.

Common types of carpenter insurance claims

Here are examples of some of the most common claims carpenters make:

• Property damage: If while putting up a custom cabinet for a client, you accidentally drill through a water pipe, causing a flood, this insurance will help cover any related repair costs.
• Theft: If someone breaks into your vehicle overnight and steals your expensive carpentry tools, this coverage will help you replace them.
• Faulty work: If a client sues you because they believe your cabinets aren’t level after all the work has been completed, your insurance will assist with legal expenses.

How much does carpenter insurance cost?

The cost of carpenter insurance varies based on several factors:

• The size of your business
• The number of employees
• The nature of your work
• Your level of experience
• Your claims history

On average, basic coverage ranges from $500 to $2,000 per year. Additional policies or a higher coverage amount will increase the cost but can provide extra peace of mind.

How to get the cheapest carpenter insurance quote

To find the most affordable insurance, consider these strategies:

• Shop around: Each insurance provider has their own quotes which is why it's always good to compare quotes from different insurers to find the best deal for the best coverage.
• Bundle policies: If you have other insurance policies, such as auto or home insurance, ask about bundling them with your carpenter insurance for potential discounts.
• Increase your deductible: A higher deductible can lower your premiums, though you’ll pay more out of pocket if you make a claim.
• Have safety measures: Have safety measures in place to prevent accidents from happening and from you filing claims. The more claims you have, the higher your insurance rate will be, and fewer claims generally lead to lower premiums over time.

Carpenter insurance in Canada: What you need to know

When it comes to carpenter insurance, there are several uniquely Canadian factors to consider:

• Regulations: Just like general contractors, carpenters legally require general liability insurance in Canada, to receive a certificate of insurance, which is required to register your business. You will also be legally required to have commercial auto insurance if you use a car.
• Employees: If you decide to hire even just one employee, you're legally obligated to obtain workers' compensation insurance. This coverage protects your employees in the event of workplace accidents. Keep in mind that each province has its own regulatory board and specific rates, and this policy will be separate from your insurance package with your insurer.
• Subcontractors: Unless you employ employees, any subcontractors you work with will require their own insurance policy. Before working with subcontractors, it's also best practice to ask for proof of insurance in case anything goes wrong.