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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