Find insurance for carpenters in Florida
Carpenters typically need insurance to sign contracts, get licensed, and protect themselves financially. Learn about the most common insurance policies in Florida and when you're required to have coverage.
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What are the most common policies for carpenters in Florida?
Carpenters may need different types of insurance coverage depending on their unique risks and requirements. These are the most popular insurance policies for Florida contractors to protect against financial losses.
General liability insurance
This policy covers basic carpentry risks, such as a client who trips over a pile of boards. Bundle it with commercial property insurance for savings in a business owner’s policy (BOP).
- Slip-and-fall accidents
- Damaged customer property
- Product liability insurance
Workers’ compensation insurance
Florida requires workers' comp for every carpentry business with employees. It also protects sole proprietors from work-related medical bills personal insurance might deny.
- Medical expenses from job injuries
- Disability benefits and some lost wages
- Lawsuits from injured employees
Tools and equipment insurance
This policy helps pay for the repair or replacement of saws, finish nailers, and other tools if they are lost, stolen, or damaged. It's also called inland marine insurance.
- Stolen tools
- Damaged equipment
- Any movable items brought to jobsites
Commercial auto insurance
Commercial auto insurance covers third-party bodily injuries and property damage caused by a carpentry business's vehicle, along with any related legal fees.
- Medical costs if another person is injured
- Repairs to other vehicles or property
- Lawsuits from injured parties
Business owner's policy
A BOP bundles general liability coverage and commercial property insurance for less than purchasing each separately. It's often the most cost-effective type of insurance for a carpenter.
- Accidents that injure clients
- Client property damage
- Damage to your building or its contents
Professional liability insurance
A professional liability insurance policy covers legal costs if a carpenter is sued for a professional mistake or oversight. It's also called errors and omissions insurance (E&O).
- Incorrect materials
- Late or undelivered carpentry work
- Faulty workmanship
Which policies are required for carpenters in Florida?
Whether you're in Jacksonville, Miami, or elsewhere in Florida, you may need the following types of carpenter business insurance to comply with laws and the terms of contracts:
General liability insurance
General liability insurance protects your carpentry business from the most common third-party lawsuits. Because carpenters often work around other people and on their properties, they face a high risk of accidental bodily injuries and property damage.
If your business is blamed for harming someone or damaging their property, this policy will cover medical payments and repair costs, along with legal expenses if the injured party sues. That includes attorney's fees, court costs, and a court-ordered judgment or settlement.
General liability insurance can also pay for lawsuits related to advertising injuries, such as libel, slander, and copyright infringement. For example, it will pay for your legal defense costs if a competitor sues your business for making a false statement about them on social media.
In Florida, some carpentry businesses may need general liability insurance to qualify for a contractor license, depending on the type of work they perform. The Florida Department of Business and Professional Regulation (DBPR) requires certain licensed contractors, including those performing structural work, framing, and other construction-related services, to maintain liability insurance as part of the licensing process. Ultimately, coverage requirements vary by license classification and business structure.
Even when it's not required by the state, some clients, property owners, and general contractors often require proof of general liability insurance before awarding contracts or allowing work to begin.
Any small business owner might find they need general liability to sign a commercial lease or apply for a business loan. To meet requirements for higher limits, you can add excess liability or commercial umbrella insurance to your general liability policy. Umbrella insurance boosts the limits of general liability insurance and other liability policies once the limit is reached on a claim.
Workers' compensation insurance
All construction businesses with one or more employees in Florida are generally required to carry workers' compensation insurance. This requirement applies to carpentry businesses regardless of the number of employees, making Florida one of the stricter states when it comes to workers' compensation requirements in the construction industry.
If you don't have any employees, you may qualify for an exemption. However, many clients, property owners, and general contractors still require proof of workers' compensation coverage before allowing work to begin.
Workers' comp pays for medical bills and provides disability benefits during recovery if an employee is injured on the job. Most policies include employer's liability insurance, which covers lawsuits from injured employees.
Carpenters have a high rate of injuries, which is why you should consider buying workers' comp even if it's not required. If you're injured on the job, your workers' comp policy will pay for any medical treatment you need—including ongoing care—and help offset your lost wages.
Commercial auto insurance
Commercial auto insurance covers medical bills and property damage if your carpentry business's vehicle is involved in an accident. Depending on the coverage options you choose, it can also pay for vehicle theft, weather damage, and vandalism.
Minimum auto insurance requirements for Florida businesses are:
- $10,000 property damage liability per accident
- $10,000 personal injury protection (PIP)
For vehicles that your business uses but doesn't own, you'll need a separate policy called hired and non-owned auto insurance (HNOA). This policy provides liability coverage but it doesn't cover damage to the insured vehicle.
Personal auto insurance typically won't cover any driving for business purposes, which is why you may need supplemental coverage.
Surety bonds
Contractor licenses and permits in Florida may require a surety bond, depending on the type of work you perform and the licensing requirements that apply.
Carpenters performing certain types of construction work, including some structural work and framing, may need a surety bond to meet licensing or local requirements. You might also need a bond to work on public projects, bid on a project, or fulfill a client's contract requirements.
A surety bond guarantees financial reimbursement for a client or other party if a carpenter fails to fulfill the terms of a contract or comply with applicable regulations. Common types include bid bonds, performance bonds, and payment bonds. Florida also requires a bond for certain construction businesses' financial responsibility officers, while some local jurisdictions may impose additional bonding requirements.
Do I need a license to be a carpenter in Florida?
Florida doesn't have a statewide license requirement for basic carpentry work. However, carpenters who perform larger-scale commercial work, framing, or other construction work that falls under a regulated contractor classification may need a license through the Florida DBPR.
The licensing requirements depend on the type and scope of work performed. For example, carpenters who take on structural or framing projects may need to meet requirements for a general building or residential contractor license. Local governments may also have additional registration, licensing, or permitting requirements.
If a license is required, applicants may need to meet experience or education requirements, pass an exam, provide proof of financial responsibility and insurance, and obtain a required surety bond. Requirements can vary based on the contractor classification and whether the license is certified or registered.
How much does carpenter insurance cost in Florida?
Carpenters based in Florida who buy policies from Insureon pay an average of:
General liability: $141 per month
Business owner's policy: $143 per month
Workers' comp: $367 per month
The cost of carpenter insurance depends on several factors, including your operations, claims history, and construction services. Businesses that take on higher-risk projects or employ multiple workers typically pay more for coverage.
What factors affect business insurance costs for carpenters in Florida?
Here are some of the top factors that determine insurance premiums for carpenters during the underwriting process:
- Types of projects: Contractors who take on high-risk projects, such as rough carpenters and roofers, will pay more for insurance than low-risk contractors, such as cabinet makers, handymen, and finish carpenters.
- Business size: Each employee or subcontractor brings a higher risk of accidents or potential damage to client property, which will increase your insurance rates.
- Annual revenue and payroll: Businesses that have higher revenue and payroll are associated with more frequent claims, so they typically pay more for insurance.
- Business equipment and property: Higher-value items, such as table saws and other power tools, cost more to insure than hand tools or lower-cost items.
- Years of experience: Carpenters with more experience tend to pay lower premiums than newer businesses, as over time they can establish themselves as low risk.
- Location: Businesses located in cities like Tampa or Orlando will cost more to insure than businesses in rural areas. Crime rates, property values, foot traffic, and other regional factors affect your premiums. Florida’s exposure to hurricanes and severe weather can also push construction insurance costs higher than in many other states.
- Coverage limits and deductibles: Higher coverage limits and lower deductibles typically raise your premiums, while lower limits and a higher deductible can help keep your insurance rates low.
- Claims history: A carpenter who has filed an insurance claim in the past will likely pay more for insurance than a company with no history of claims.
In addition, the types of insurance you purchase will determine how much you pay for coverage. Carpenters working on new construction may need builder's risk insurance to cover a structure in progress and building materials. Other projects may benefit from installation floater insurance to cover materials and other movable property awaiting installation.
How to save money on carpentry insurance in FL
Florida carpenters can often lower their insurance costs without sacrificing coverage. Consider these strategies when shopping for insurance:
Bundle policies. A business owner's policy combines general liability and commercial property coverage into a single package. Purchasing this coverage package is often more affordable than buying each policy separately.
Choose the right payment option. Some insurance companies offer savings when you pay your premium annually rather than in monthly installments. Paying upfront can also help you avoid installment fees. Insureon offers flexible payment options, including monthly and annual plans, so you can select a payment schedule that works best for your budget and cash flow. Our knowledgeable agents can also work with you to find other plans available for your risks and needs.
Improve workplace safety. Businesses with strong risk management and safety programs often experience fewer claims, which can help keep insurance costs down. Providing employee safety training, using protective equipment, inspecting tools regularly, and implementing fall-protection measures can all help reduce workplace injuries and workers' compensation expenses.
Avoid short-term coverage when possible. Some contractors purchase insurance only when it's required for a specific project. However, maintaining continuous coverage throughout the year may provide more consistent protection and can be less expensive than repeatedly starting and canceling policies. A lapse in coverage can also make it more difficult to secure later, and reinsurance pricing can be much more costly. Keeping coverage in force may help you qualify for lower rates over time.
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How do I get Florida carpenter insurance?
Insureon helps you save time and money shopping for carpenter liability insurance by comparing tailored insurance solutions from top U.S. insurance companies.
Our insurance agents are licensed in Florida and can answer your insurance FAQs and concerns as you consider coverage.
To make the application go quicker, have this information ready:
- Workforce details, such as the number of employees and subcontractors
- Current and projected revenue
- Business partnerships
- Desired coverage limits, endorsements, and exclusions
- Claims history
- Commercial lease requirements
Apply for free insurance quotes today to find affordable contractor's insurance that fits your business needs. Most small business owners receive a certificate of insurance (COI) for proof of coverage the same day.
The average costs on this page were derived from our data on Florida 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.