Texas Carpenter 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, including issues with completed operations, 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 Texas, carpentry businesses aren't subject to a statewide general liability insurance requirement. However, many cities and municipalities require contractors to register, obtain permits, and carry liability insurance before performing work.

Clients, property owners, and general contractors also routinely require proof of coverage before awarding contracts or allowing work to begin. Even when it isn't required by law, general liability insurance is often necessary to compete for projects and demonstrate financial responsibility.

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.

While most Texas employers aren't required to carry workers' comp coverage, many carpentry businesses choose to purchase this policy to protect their employees and meet contract requirements. General contractors, project owners, and government entities may require proof of workers' comp coverage before allowing subcontractors to work on a job site.

In Texas, carpenters may also need to show proof of insurance when registering as a contractor or obtaining permits in certain cities. Carrying workers' compensation insurance can help demonstrate financial responsibility and may make it easier to qualify for projects that require insurance documentation.

Workers' comp pays for medical bills and provides disability benefits during recovery if an employee is injured on the job. Most policies also 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 or even if you have no employees. 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 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 Texas businesses are:

• $30,000 in bodily injury liability or death liability per person
• $60,000 in bodily injury liability or death liability per accident
• $25,000 in property damage per accident

Additionally, personal injury protection (PIP) insurance is required in Texas on commercial policies. This add-on insurance helps provide medical payments coverage after a car accident, regardless of who was at fault. However, it's important to note you can sign a waiver to decline this coverage if you don't want it.

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.

Contractor registration, permits, and construction projects in Texas sometimes require a surety bond, depending on the type of work you do and where the project is located.

Texas doesn't require a statewide contractor license bond for carpenters. However, some cities require contractors to obtain permit or registration bonds before performing work. You might also need a bond to bid on a project, work on a public construction project, or sign a contract with a client. Public works projects in Texas often require bid bonds, performance bonds, and payment bonds, depending on the contract value.

A surety bond guarantees financial reimbursement for the client if a carpenter fails to fulfill the terms of a contract or adhere to regulations.