How much is Insurance for Independent Contractors

If you are an independent contractor, taking relevant insurance covers is very important for your business. This protects you from heavy losses that might occur due to various things. For example if you are woodwork independent contractor, you may need to take insurance policies that covers various woodwork tools like circular saw, table saw, jig saw and other tools that you cannot afford to lose. The good thing is that most of these insurance policies are not very expensive. In this article, we shall outline some of the best insurance policies for independent contractors and their cost.

General Liability

For independent contractors who work in the construction sector this is one of the important policies for such businesses. With this cover, you are guaranteed that risks that might occur in line of your duty are catered for. Since in most cases you will need to visit job sites and interact with clients, this cover will cater for any expenses that might occur.

It also covers physical injuries that might happen especially when handling various tools like the circular saw, miter saw, table saw or any other woodwork tool. Imagine what would happen when a customer falls accidentally on one of the tool and you do not have finances to cater for the medical bills. With this policy, you are sure that such risks are covered. If you have a small business, this policy goes for around $400 -$600 annually.

Commercial Property Insurance

Irrespective of the type of tasks you do, you will need different tools to do various tasks. For example, if you are an independent contractor who deals with woodwork projects, you will need various tools like the jigsaw, compound miter saw, band saw, circular saw, miter saw, table saw, sander and other different tools to do various woodwork projects. For sure, there tools are very expensive. Have you ever thought what would happen in case they get damaged or stolen? This is where the commercial property insurance comes in. This policy also caters for various disasters that may happen in your or up to 500 feet from your business like fire, storms, or any other.

Commercial property insurance cover goes for $400-$750 per year depending on the size of your business. The costs also depending with number of tools you have and their prices.

Liability Insurance

This policy depends on the level of risks in your business. For instance, if you are providing structural advice, you may need to pay higher rates than those who handle simple woodwork projects. It goes for $600 per year for those with a small business.

Cyber Liability Insurance Cover for Independent Contractors

If your customers pay via credit card, this policy ensures that your business is protected in case customer’s customer details are stolen. It goes for about 500 per year

Other Insurance Covers for Independent Contractors

Commercial Auto Insurance– If you own business vehicles, you should take to cover your business vehicles. It goes for about $1000 per year.
Hire and Non owned auto insurance – At times you may opt to hire a business vehicle instead of buying. In such a case, you will need to consider hire or non-owned auto insurance. Again, it is good for independent contractors who rent, hire or borrow vehicles for business purposes. This cover goes for about $100 per annum.

Commercial Umbrella Insurance– This is another important cover which caters for any claims that are higher than the existing and underlying policy limits. This insurance cover goes for $1000-$2500 per year.


If you are an independent contractor, those are the most important insurance covers you should take for your business. With these covers, you will always have a piece of mind that your business is covered against risks that might occur. Again, if you own various tools like the band saw, table saw and miter saw, commercial property insurance will be the most suitable because In case any of the tools is destroyed or stolen, you will get compensation from the insurance company.

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What Insurance Do Carpenters Need?


If you own a woodwork business, it is good to ensure that your business is covered by different insurance policies that are suitable for your business. In many workshops, you cannot miss expensive tools like the band saw, circular saw, sander or compound miter saw. These tools are very risky and are likely to cause accidents. This means that you need to get relevant covers that caters or medical bills in case accidents. They can also get lost or stolen, to ensure that you do not lose your customers when such incidents happen it is good to choose a suitable insurance cover. Below are other important insurance policies for carpenters.

Tool and Property Cover

Tool insurance cover is a must for everyone who owns a woodwork business. Imagine what would happen when your favorite tools like the circular saw, jigsaw, band saw, compound miter saw or any other tool get stolen or lost. This can lead to heavy losses since you will have to buy new ones. The problem is that you may not have the required finances to purchase all these tools. This is where a tool and property cover comes in. In case your tools get lost or this cover will ensure that you are compensated. They say prevention is always better than cure so it is always good to be prepared for such incidences.

Workers Compensation Policy

Whether you have a small or big woodwork business, this insurance policy is a must. In case any of your employees makes a compensation successfully, this policy caters for those expenses. This also means that incase any of your employees get injured by any of the tools like the circular saw within the business premise, this policy will pay for their treatment. Again, it caters for medical bills if any of your workers get sick when working.

Public Liability Insurance

This is another insurance cover that assists woodworkers to cater for expenses that occurs due to injuries that occurs within the premises. Accidents are very likely to happen in workshops. This is because most of the tools like the circular saw, table saw and jigsaw are very dangerous especially when you mishandle them. It also covers you against any damages. This means if your customers’ products get damaged, this cover will pay for the damages.

Professional Indemnity Insurance

If you own a woodwork business, you will agree with me that customers will not always be happy about your products. Some may file lawsuits when they are not satisfied, Sometime the cost of legal proceedings can be very high. This is where the Professional Indemnity Policy Covers comes in because it covers for those expenses.

Commercial Motor Insurance

Taking an insurance cover for your car is a great thing especially if you are using it to deliver furniture and other woodwork products to your customers. Again, if you are using it to transport heavy tools like the band saw and miter saw to different areas, this policy will cater for any damages or losses that result from car accidents.

 Personal Insurance Cover

If you are a self-employed woodworker, this insurance policy is very important. If you frequently use tools like a circular saw, table saw or any other tool with sharp blades, you are likely to cut yourself accidentally. Sometimes you may not be able to continue working after injuries. However, a personal insurance cover provides you with a reliable income either a lump sum or weekly payments before you resume your work.


Before taking any insurance cover for your woodwork business, you should ensure that you have read and understood the terms. If possible, you can talk to an insurance broker to get some tips. These brokers are very helpful and will be able to advice you on what you need.


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What is the Cost of Business Insurance for Carpenters?

What is the Cost of Business Insurance for Carpenters?

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.

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