If you own a woodworking business, one of the most important things you should do is to insure your business. This will prevent you from incurring heavy losses when unavoidable circumstances occur. Imagine waking up one morning only to find that all your important tools like the band saws, Japanese saw, power drill, jigsaw, compound miter saw and other tools have been stolen. And if you’re a carpenter, that’s about every minute of your day. And risk like that needs the right protection. In this article, we shall explain the different types of insurance covers that are suitable for woodworkers and their prices.
General Liability Insurance- Interior Carpentry
In most woodworking workshops, you will find that they have a lot of furniture which are intended for sale or display. However, anything can happen and they may fall down and get destroyed. This can be very frustrating right? The good news is that you can take the General Liability Insurance to cover for such expenses. With this policy, you are assured that various carpentry risks are catered for including legal proceedings. This policy normally goes for $361 -$1,089.
Per Claim Limit $1,000,000
Median Policy Premium $361 -$1,089
Policy Claim $2,000,000
General Liability Insurance – Ideal for carpenters and service group
This one caters for basic woodwork services including legal expenses which occurs when third parties or customers sue the business for various reasons like property damage or injuries that might be caused by various tools like the circular saw, table saw or other tools within the business premises. This cover goes for $380-$1200,
General Liability for Finish and Trim Carpentry
General Insurance policy covers various issues that are raised by your customers. For example, they might get injured within your workshop by tools like the table saw, circular saw, band saw or a miter saw. These tools are very dangerous and if you allow your customers inside your workshop, accidents are likely to happen especially if these customers do not observe safety precautions. With this policy, you won’t need to worry because it covers lawsuits and any other losses that might occur due to injuries.
Another thing is that the GC might not be happy with your work on your installation might not meet the required specifications. Apart from that, General Liability for Finish and Trim cover you from third party court proceedings. This policy costs $380-$920.
Per claim limit $1,000,000
Median policy premium $380-$920
Median policy deductible $1,000
Cost of surety bond / Permit Bond
When building, you will need to apply for a building permit or a license and permit bond. The reason why you will require these bonds as a carpenter is that they act as a guarantee. You will have to agree to abide by the rules of the state concerning any building or construction work. In case you do not have the license, the insurance company should pay the bond amount to the government. The permit and license bond usually cost $100.
Those are the major insurance cover for woodworkers. However, the prices might vary from one company to the other. Don’t forget to insure you’re your expensive tools like the miter saw, circular saw, table saw, band saws and any other tool available in your workshop.
Woodworking businesses are among the most profitable enterprises today. Whether you have a workshop or you prefer to work from your home, there is no doubt that you will need to invest heavily on different machines, materials, tools and workmanship if you want to succeed.
However, think about what would happen when a crisis occurs and most of your tools like table saws, band saws, sabre saw, sander, bench grinder power drills and others are destroyed. Starting all over again can be very costly. The good thing is that this is something you can prevent by simply taking an insurance cover for your woodwork business. In this article, we shall outline some of the best insurance covers for woodwork businesses.
General Liability Insurance – This one is a very comprehensive cover which is suitable for small businesses. General Liability Insurance covers you from loses that might occur due to unavoidable circumstances such as natural calamities. It also covers your customers from accidents they might encounter within your business premises. Again, it helps you in case you would like to expand your business in future.
Compensation of workers- Most of the woodworking tools like circular saws, nail guns, table saws and jigsaws can be very dangerous. If you have employees in your business, it is good to insure them with workers comp insurance policy. This one is mandatory requirement you will find in every state. Workers comp insurance covers all the expenses incurred in case any of your workers get injured by any of those tools in line of duty.
Commercial Auto Insurance – For those who drive frequently for various business activities like workshops, events and seminars, commercial auto insurance cover will be suitable for you. This policy covers all the costs of repairing or replacing your car. Again, it caters for medical bills those results from accidents.
Business Owners Policy -BOP
BOP provides various types of insurance covers for those who own woodwork businesses. The good thing about this covers that you can easily choose the one that suits your business. Below are some of the areas this insurance cover can help you.
- Machine breakdown – If you own a woodwork workshop, you will agree with me that most of the most important tools like band saws, power drills, table saws, compound miter saws are a bit expensive. This means that in case they break, you are likely to incur a lot of costs to replace them. However, you can insure them with Business Owner Policy so that in case they break down, you will be compensated and you will be ready to resume with your projects as soon as possible.
- Newly Constructed or Acquired Buildings – Once your woodwork business starts to grow, you may need to purchase or construct a new building. Shrewd business owners understands this and they usually look a cover that will help buy or build a new building when that time comes since it can be very expensive.
- Buildings – Natural calamities like earthquakes, storms cannot be avoided. When they happen, they usually cause heavy losses which included destructions of buildings. The good thing is that if you are business is located in areas where such loses are likely to occur, you need to take a BOP insurance cover.
- Electronic Data– Due to technological advancements, many people who own woodworking business prefer to store data electronically because it is easier and more convenient. However, it is very risky because computes can easily lose all the data due to computer viruses or computer breakdown. What you need to know is that recovering that data is not easy at all. A BOP can save you at such times if you have insured your electronic data.
- Business Income and Expenses– When natural disaster happen, you may be forced to stop working for some time. This means that you will lose a lot of income within this period. A BOP insurance cover will cater for the losses incurred during this time.
- Valuable Papers Protection – Do you have very important documents for your business like certificates, business records and other records you would never wish to lose? Valuable Papers Protection Policy is a nice cover.
Whether you have a small woodwork business or a large one, an insurance cover is among the most important thing you must always have. The good thing is that these insurance policies varies according to the demand so of every business. Therefore, you have to determine the one that suits you best. You also need to ensure that all the tools in your workshop like the circular saw, miter saw, table saw, band saw, jigsaw among others are insured even against theft and other relevant insurance policies.
Those that we have outlined above are the most popular insurance covers for woodwork businesses. Remember that you also need to take the cover from a reputable and reliable insurance company. Make sure you have understood the terms before you take the cover.
Whether you own a workshop or you just love DIY projects, there is no doubt that you will require various tools to perform different tasks. Even if these tools make the work easier, sometimes they can be very dangerous and can cause serious accidents. Some of these injuries may even lead to death. However, if you use these tools frequently, you can insure yourself form the accidents that might occur. Doing this will give you a guarantee that in case accidents happen, the insurance company will cater for your medical bills. Nonetheless, you need to go through the insurance policies to know which one is the best for which tool. Below are some of the most dangerous tools.
If you own a table saw, you are aware that these tools can be very dangerous and are likely to cause accidental cuts. According to the Consumer Product Safety Commission- CPSC in the United States, the reported cases of injuries in year 2003 caused by table saws were almost 40, 000. Some resulted due to direct contact with the blade while others were caused by kickbacks which usually occur when cutting wood. The injuries caused by these tools not only causes emotional and physical pain but they also lead to high medical bills. If you are not insured some of these bills may be very difficult to pay.
- Anytime you are using a table saw, you must ensure that your eyes are well protected. The best way to do this is use of safety goggles or glass. You can also use a facemask.
- Height of the blade – Always ensure that the blade is not set to high because you can accidentally slip when cutting. You should never set it higher than 6 millimeters above the stock.
- Stand in the right place- The projectiles that fly from the machine usually do so in line with the blade. This means that you are not supposed to stand directly in line with the tool’s blade.
Just like any other tool, chainsaws can be very dangerous. If you have never used a chainsaw before to trim around your home, accidental cuts are likely to occur. This means that you have to ensure that you fully understand how it operates before using it. Their performance is usually determined in terms of horsepower. Since they use a spinning blade, you need to ensure that you hands do not get near the blade. A study by the CPSC found that in 1999, there were over 28,500 reported chain-saw injuries in the U.S.
- One of the best ways to prevent injuries when using a chainsaw is by ensuring that you are very stable when cutting. This means that you need to invest in quality shoes that will give you the required stability.
- Again, you can look for chainsaw chaps. The good thing about them is that they are resistant to cut. They also help to minimize impact in case unexpected thing happen.
- Another great method is ensuring that your eyes are covered. Apart from that, you need to ensure that your ears are also protected by use of earplugs. If you use a chainsaw a lot, an insurance cover will give you a piece of mind that in case something happens you will get compensated.
Circular saws are among the most abused tools especially by those who do DIY projects. Even if they are easy to use, sometimes they can be very unsafe. Most of the accidents caused by circular saws usually results from kickbacks. They also have circular blades which rotates at a high speed. This means that if you mishandle them, you are likely to cause serious injuries.
- Before you start using it, ensure that you already know how it works. If you are a beginner, you should go through the use manual to learn every detail you need to know about it.
- Always ensure that the blades are very sharp and free from pitch. Dull blades can result to kickbacks. Whether you are using it in your home or workshop, getting a suitable insurance cover is a great way to ensure that you can get compensated in case accidents occurs.
Nails guns are usually preferred because they do the job faster than when you are using a hammer. Since they are very powerful, it also means that they are equally dangerous. Most nail guns are able to drive a 3 inches nail over 1000 miles in an hour pr 15 feet per second. What you need to know is that these tools are so dangerous and they can even break bones. If you normally use nail guns, you must make sure that you have a reliable insurance cover because sometimes it may not be easy to prevent accidents. A recent study by the Centers for Disease Control and Prevention shows that nail gun injuries have nearly doubled since 2001
- To ensure that these guns do not shoot nails accidentally, most of the manufacturers include a sliding safety tip on their nail guns. This means that you will require pushing the safety tip down before pulling the trigger.
- Keep your fingers away from the trigger. Otherwise, you may accidentally shoot a nail on your foot or that of a colleague. Again, ensure that there is nobody near the nail’s path. You should also put your fingers at least 12 away from the nailing point.
Ladders are among the most common tools you cannot miss in many homes. They are very easy to use and at the same time are very dangerous. One of the major causes of ladder accidents is using the wrong type of ladder or a damaged ladder. Below are the safety measures you can take.
- Always check the weight capacity of the ladder to ensure that it can comfortably support your weight. You also need to consider the height so that you can choose a suitable ladder that matches the task.
- The other thing is that you should always ensure that it is very firm and stable on the ground.
- You should never try to change the default measurements of the ladder. That means that you should never try to change the height or change the materials.
Those are among the most dangerous tools that are likely to cause serious injuries when using them. However, taking an insurance cover that protects you from the accidents caused by those tools is a fantastic idea because you will not need to worry about high medical bills. Nonetheless, these accidents can easily be prevented if you take safety measures anytime you are using the tool.