Find insurance for carpenters in Nevada
Carpenters typically need insurance to sign contracts, get licensed, and protect themselves financially. Learn about the most common insurance policies in Nevada and when you're required to have coverage.
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What are the most common policies for carpenters in Nevada?
Carpenters may need different types of insurance coverage depending on their unique risks and requirements, especially since a client's standard home insurance won't cover contractor mishaps. These are the most popular insurance policies for Nevada 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
Nevada requires workers' comp for every carpentry business that has employees. It also protects sole proprietors from work-related medical bills that health insurance might deny.
- Medical expenses from job injuries
- Disability benefits and some lost wages
- Lawsuits from injured employees
Inland marine 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 tools and equipment 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 the policies separately. It's a 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 Nevada?
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 Nevada, carpenters must obtain the appropriate license from the Nevada State Contractors Board (NSCB). The C-3 Carpentry, Maintenance, and Minor Repairs license covers qualifying carpentry work. To obtain a contractor's license, businesses must provide proof of required licensing documents, including a license bond. General liability insurance may also be required to meet project or client requirements.
Even when it's not required by the state, some clients, property owners, and general contractors often require proof of general liability insurance, and sometimes professional 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 Nevada businesses with employees must provide workers' comp coverage. Construction businesses should pay particular attention to these requirements because Nevada law can hold general contractors responsible for injuries to subcontractors and their employees.
Even if you hire independent contractors instead of employees, you may still be responsible for providing coverage, depending on the circumstances and whether the subcontractor qualifies as an independent enterprise.
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.
Carpentry work involves risks such as falls, cuts from power tools, and injuries from lifting heavy materials. Workers' comp can help protect your business from the financial consequences of workplace injuries.
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 Nevada businesses are:
- $25,000 in bodily injury liability per person
- $50,000 in bodily injury liability per accident
- $20,000 in property damage per accident
For vehicles 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 Nevada may require a surety bond, depending on the type of work you do and the requirements of your license or project.
Carpenters who need a contractor's license must obtain one from the Nevada State Contractors Board and provide a license bond or cash deposit. The required amount depends on factors such as the license classification, monetary limit, and financial responsibility.
You might also need additional bonds to bid on a project or fulfill the requirements of a public works contract.
A surety bond provides financial protection for eligible claimants if a contractor fails to fulfill certain contractual obligations or meet legal requirements. Common types include license bonds, bid bonds, performance bonds, and payment bonds.
Each serves a different purpose, so check the requirements for your license and project before purchasing a bond.
Do I need a license to be a carpenter in Nevada?
Yes, Nevada generally requires carpenters to hold a contractor's license when they undertake construction, alteration, or repair work valued at $1,000 or more, including labor and materials. A license is also required for work that needs a building permit, even if the project costs less than $1,000.
The C-3 license covers carpentry, maintenance, and minor repairs, with subclassifications for different types of work, including:
- C-3a Carpentry and Repairs: Framing, rough carpentry, siding, exterior staircases, railings, doors, windows, cabinets, and other structural or finish woodwork.
- C-3b Finish Carpentry: Installing, repairing, and finishing cabinets, door and window casings, wood flooring, baseboards, countertops, and other millwork.
- C-3c Insulation and Weather Stripping: Installing building insulation, weather stripping, caulking, and firestop systems.
- C-3d Glazing: Glass and glazing work.
- C-3e Drywall: Installing, taping, and finishing drywall, gypsum wallboard, acoustical tile, and related materials.
To determine which subclassification matches your services, review the Nevada contractor license classifications list. If your business performs work outside the scope of its C-3 license, you may need a different classification.
Applicants generally need to demonstrate at least four years of relevant experience within the preceding 15 years, pass the required examinations unless an exemption applies, and meet the state's financial responsibility requirements. The Nevada State Contractors Board also requires a surety bond or approved cash deposit, with the amount determined by factors such as license classification, monetary limit, and financial responsibility.
Contractors must provide proof of workers' comp coverage that meets Nevada's workers' compensation requirements or submit an exemption affidavit if eligible.
How much does carpenter insurance cost in Nevada?
Nevada construction professionals and carpenters who buy from Insureon pay an average of:
General liability: $117 per month
Workers' comp: $219 per month
Business owner's policy: $168 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 Nevada?
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 framers and roofers, will pay more for insurance than low-risk contractors, such as cabinet makers and finish carpenters.
- Business size: Each employee or subcontractor increases the risk of accidents or potential damage to client property, which can raise your insurance rates.
- Annual revenue and payroll: Businesses with a 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 urban areas like Carson City will cost more to insure than businesses in rural or scenic areas like Incline Village, NV. Crime rates, property values, foot traffic, and other regional factors affect your premiums.
- 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 NV
Nevada 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. This 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. Employee safety training, using protective equipment, and implementing fall-protection measures can 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 Nevada carpenter insurance?
Insureon helps you save time and money shopping for carpenter liability insurance products by comparing quotes from top U.S. insurance companies.
Our insurance agents are licensed in Nevada and can answer your questions 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 Nevada 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.