Finding the right insurance for your carpentry business is an important step in protecting your business and setting the foundation for long-term success.
As a carpenter, you’re a skilled craftsmen involved in various kinds of construction, building, or repairing structures. You’re an expert in working with wood and other materials and play a crucial role in construction as well as in finishing the interior of buildings.
Having the right insurance coverage can help protect your carpentry business if someone is injured or if property is damaged by your business. Although you likely operate your business in a safe manner, the carpentry trade has many hazards, including flying materials, hazardous tools, dust, and chemicals. Ensuring that you have the right insurance coverage is a smart business decision that will help you to win new business and protect your business finances in the case of an accident.
Carpenter Insurance Coverages
Some of the most common coverages for carpentry contractors are listed below, along with relevant examples of incidents that would trigger these coverages.
- Commercial General Liability Insurance protects your business if you physically injure another person or cause damage to someone else’s property. Many clients require carpenters to carry commercial general liability insurance in order to be hired.
- Property Damage: You accidentally drop a hammer, damaging a client’s custom flooring, which is expensive to repair.
- Bodily Injury: A client trips over a spare piece of plywood that was left out and sues your business for negligence. The client hurts her knee and needs surgery. She sues your business for medical expenses and lost wages from being unable to work.
- Products & Completed Operations: You build a staircase for a client. A year after completing the work, one of the steps breaks and the client trips, injuring himself. The client sues you for medical expenses.
- Workers’ Compensation Insurance provides funds for medical expenses and lost wages if one of your employees is injured or killed while on the job. Carpentry can be a hazardous job, so it’s critical that you carry workers’ compensation insurance. In almost all states, workers’ compensation insurance is required for companies that have employees.
- One of your employees accidentally cuts himself while operating a saw, leaving him unable to work. Workers’ compensation insurance would provide coverage for the employee’s medical bills, rehabilitation expenses, and a portion of his lost income while he is unable to work.
- Commercial Property Insurance provides protection for property that your business owns or is responsible for.
- Installation Floater Insurance protects property before or during installation. For carpenters, this could cover construction materials or fixtures you are transporting or installing for clients.
- You move plywood to a client site and store it for use on a job. The plywood is stolen overnight while none of your employees is at the client site.
- Installation Floater Insurance protects property before or during installation. For carpenters, this could cover construction materials or fixtures you are transporting or installing for clients.
- Commercial Auto Insurance protects your business if you or one of your employees causes injury or damage to someone else while driving a business vehicle or while driving for business purposes. It also protects vehicles owned by your business from damage or theft.
- Your work van crashes into another vehicle on the way to a carpentry job. The other driver is injured and sues your business.
- The truck owned by your business is stolen from the parking lot in front of your business.
Carpentry Industry Statistics
Employers of Carpenters
| Self-employed workers | 33% |
| Residential building construction | 21% |
| Nonresidential building construction | 12% |
| Building finishing contractors | 11% |
| Foundation, structure, and building exterior contractors | 9% |
Source data: Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Carpenters (2016)
Median Pay for Carpenters
| Nonresidential building construction | $49,690 |
| Building finishing contractors | $46,440 |
| Residential building construction | $43,660 |
| Foundation, structure, and building exterior contractors | $41,820 |
| Overall | $45,170 |
Source data: Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Carpenters (2017)
Job Growth for Carpenters
| Number of Jobs, 2016 | 1,025,600 |
| Employment Change, 2016-26 | 83,800 |
| Job Outlook, 2016-26 | 8% |
| Total Job Outlook, 2016-26 | 7% |
Source data: Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Carpenters (2016)
Non-fatal Occupational Injuries for Carpenters
| Incidence rate | 4.1% |
| Number of cases (thousands) | 4.9 |
Source data: Bureau of Labor Statistics, U.S. Department of Labor, Industry Injury and Illness Data, Finish carpentry contractors (2016)