How much does carpenter insurance cost?
Carpenters can save money on business insurance by comparing quotes from different providers with Insureon. Your premium depends on the type of policy, coverage limits, deductibles, and factors such as your business's location and number of employees.
Top carpenter insurance policies and their cost
Here are the top insurance policies purchased by carpenters and their average monthly premiums:
- General liability insurance: $94 per month
- Business owner's policy (BOP): $130 per month
- Workers' compensation insurance: $201 per month
- Inland marine insurance: $42 per month
- Commercial auto insurance: $239 per month
- Professional liability insurance: $67 per month
- Commercial umbrella insurance: $116 per month
- Builder's risk insurance: $108 per month
- Surety bonds: $9 per month
Our figures are sourced from the median cost of policies for carpenters who apply for quotes with Insureon. The median offers a better estimate of what your business is likely to pay because it excludes outlier high and low premiums.
General liability insurance
Carpenters pay an average of $94 per month, or $1,124 annually, for contractor general liability insurance.
General liability insurance provides financial protection against common lawsuits from customers. It can cover costs if someone sues your carpentry business for bodily injury, property damage, or copyright infringement.
This is the average commercial general liability policy for carpenters who buy from Insureon:
Premium: $94 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500
The cost of general liability insurance depends on factors such as the coverage limits you choose, the size of your business, the amount of foot traffic you have, and any subcontractors or additional insured endorsements.
Learn more about how your premium is calculated and how to save money on your general liability policy.
Business owner's policy
Carpenters pay an average of $130 per month for a business owner's policy, or $1,559 annually.
A business owner's policy bundles two important types of coverage at a discount. It includes general liability insurance to protect against common lawsuits, and commercial property insurance to cover stolen or damaged business property.
This is the average business owner's policy for carpenters who buy from Insureon:
Premium: $130 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $1,000
The cost of a business owner's policy depends on factors such as the coverage limits you choose, the size of your business, the amount of foot traffic you have, and the value of your business property.
Workers’ compensation insurance
Carpenters pay an average of $201 per month, or $2,411 annually, for workers’ compensation insurance. There's usually no limit to how much a workers' comp policy can pay out for employee benefits, though it depends on state laws.
Workers' comp helps pay for medical bills from work-related injuries and illnesses. Most policies include employer's liability insurance, which covers the cost of lawsuits related to employee injuries.
Even self-employed carpenters with no employees should consider buying this coverage, as your personal health insurance likely excludes work-related injuries.
The cost of workers' compensation insurance depends on factors such as the number of employees you have and the type of carpentry work they do. Learn more about how workers' comp costs are calculated and how to save money on your policy.
Inland marine insurance
Carpenters pay an average of $42 per month, or $500 annually, for inland marine insurance, which covers saws, hammers, wrenches, and other tools brought to jobsites.
Also called tools and equipment insurance, this policy helps cover the repair or replacement of lost, stolen, or damaged tools and equipment. It provides coverage for items in transit, at a worksite, or stored off-site.
The cost of inland marine coverage depends on the value of your tools and equipment and the type of work you do. Items valued at over $2,500 may need to be scheduled separately on the policy.
Commercial auto insurance
Carpenters pay an average of $239 per month for commercial auto insurance, or $2,865 annually. This coverage is required in most states for vehicles owned by a business. For personal, rented, and leased vehicles used by your business, look to hired and non-owned auto insurance (HNOA) instead.
A commercial auto policy provides financial protection in the event of an accident involving your business vehicle. It can help pay for property damage, medical expenses, and legal costs.
The cost of commercial auto insurance depends on the coverage options you choose, the value of the vehicle, and the driving records of anyone permitted to drive it. Learn how insurance companies calculate your premium and how to save money on your commercial auto policy.
Professional liability insurance
Construction and contracting businesses, including carpenters, pay an average of $67 per month for professional liability insurance, or $808 annually. Carpenters can often add this coverage to general liability insurance for a discount, with the bundle costing an average of $150 monthly.
Professional liability insurance protects carpenters from legal fees related to accusations of negligence or substandard work, such as failing to use the type of wood requested by a homeowner. It's sometimes referred to as errors and omissions insurance (E&O).
This is the average insurance coverage for construction and contracting professionals who buy from Insureon:
Premium: $67 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $1,000
The cost of professional liability insurance depends on factors such as the coverage limits you choose, the size of your business, and your profession. Find out how insurers set professional liability premiums and how to save money on your policy.
Commercial umbrella insurance
Carpenters pay an average of $116 per month for commercial umbrella insurance, or about $1,396 annually.
You can buy this policy to boost the limits of your underlying general liability, commercial auto, or employer's liability insurance. When the underlying policy reaches its limit, commercial umbrella insurance activates to cover any costs over that limit, up to the additional limit of your umbrella policy.
The cost of commercial umbrella insurance depends primarily on the amount of coverage you purchase.
Builder's risk insurance
Carpenters pay an average of $108 per month, or $1,297 annually, for builder's risk insurance. This type of insurance is also called course of construction insurance.
This policy covers a structure under construction in the event of fire, theft, vandalism, or similar risks. It typically covers the structure and any materials at the jobsite.
The cost of builder's risk insurance depends on the total completed value of the structure.
Surety bonds
Carpenters pay an average of $9 per month for surety bonds, or $112 annually. You may need a bond to sign a contract with a client or bid on a project.
A surety bond reimburses your client if you're unable to fulfill the terms of a contract or other agreement.
The cost of a surety bond depends primarily on the value of the bond.
Key factors influencing policy costs
Your insurance provider calculates your insurance premiums based on several factors, including:
- Types of projects: Higher-risk carpentry projects, such as structural framing, roofing work, or jobs requiring scaffolding and elevated work, will have more costly premiums than lower-risk projects, such as cabinetry, trim, or finish carpentry in residential homes.
- Business size: The more employees or subcontractors that are on staff, the more opportunities there are for accidents to happen or for potential damage to occur to someone else's property.
- Annual revenue and payroll: The more your carpentry business makes in a year and the more you pay your employees or subcontractors, the higher your premium will cost. That’s because increased revenue and payroll mean a greater exposure to potential risks on the job.
- Business equipment and property: Higher-value items, such as table saws and other power tools, cost more to insure than hand tools and other inexpensive items. Items used more frequently also tend to cost more to cover than infrequently used items.
- Years of experience: Carpenters with more experience working in the field will tend to pay lower premiums than newer businesses due to lower associated risks.
- Location: Carpenters who work in areas prone to natural disasters, increased foot traffic, or high crime rates can expect to pay more for insurance.
- Coverage limits and deductibles: Higher coverage limits and lower deductibles typically increase premiums, while lower limits and higher deductibles can help keep insurance rates low.
- Claims history: A carpenter with a lengthy list of previous insurance claims will likely pay more for insurance than a company with a clean claims history.
How do I get affordable carpenter insurance?
Insureon can help you find affordable carpentry insurance in three easy steps:
- Fill out an easy online application with details about your business.
- Get free quotes from top-rated U.S. providers.
- Select a policy and pay the premium to begin coverage.
Our licensed agents will help you get the best carpentry insurance for your business risks, budget, and state requirements. Once you've bought a policy, you can download a certificate of insurance (COI) for proof of coverage. Most small businesses can get covered within 24 hours of applying for quotes.
What our customers are saying
The average costs on this page were derived from our data on small business owners in the carpentry field who purchased policies through Insureon. Most of our customers have less than five employees, annual revenue ranging from around $50,000 to more than $200,000, and five years or less in business.
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