Why do woodworking contractors need insurance?
If a tool slips, a woodworker's injury could incur hefty medical bills and lost wages—both of which would be covered by workers' comp. Other policies protect against financial losses from lawsuits, fires and storms, and auto accidents. State laws, contracts, and leases may require coverage.
Find affordable insurance
Insureon helps woodworking businesses find insurance quotes that match their risks and their budget.
A licensed agent will help you get the right coverage at an affordable price, giving you peace of mind and financial protection.
What types of insurance do woodworkers need?
These insurance policies cover common risks faced by woodworking contractors.
General liability insurance
A general liability policy covers basic third-party risks, such as a client who is injured by a piece of flying debris in your woodworking shop. It's often required for commercial leases and contracts.
- Client bodily injuries
- Accidental damage to client property
- Harm caused by your wood products
Business owner's policy
A BOP bundles general liability coverage and commercial property insurance at a discount. It's often the most cost-effective type of insurance for woodworkers who have a shop or studio.
- Accidents that injure clients
- Client property damage
- Damage to your building or its contents
Workers’ compensation insurance
Most states require workers' comp for woodworking businesses that have employees. It also protects sole proprietors from work-related medical bills that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Employee injury lawsuits
Commercial auto insurance
This policy helps pay for legal fees and damages if a woodworking contractor's vehicle is involved in an accident. Almost every state requires this coverage for vehicles owned by a business.
- Property damage caused by a work vehicle
- Medical costs if another person is injured
- Vehicle vandalism and theft
Contractor’s tools and equipment insurance
This policy helps pay for repair or replacement of chisels, hammers, saws, and other tools that travel to jobsites. It's also called inland marine insurance.
- Portable woodworking tools
- Circular saws and ladders
- Personal protective equipment (PPE)
Professional liability insurance
A professional liability insurance policy covers legal costs when a woodworking contractor is sued for a professional mistake or oversight. It's also called errors and omissions insurance (E&O).
- Use of wrong type of wood
- Failure to meet project specifications
- Failure to finish a project on time
How much does insurance cost for woodworking businesses?
A woodworking contractor who works independently will pay less for insurance than a larger business.
Factors that can affect a contractor's insurance premiums include:
- Type of business, such as wood manufacturing or doors and windows
- Value of your business property and tools
- Business size, location, and revenue
- Types of insurance purchased
- Policy limits and deductibles
- Claims history
How do I get woodworking insurance?
It’s easy to get insurance coverage for woodworking contractors if you have your business information on hand. Our application will ask for basic facts about your company, such as revenue and number of employees. Small business owners can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
- Complete a free online application.
- Compare insurance quotes and choose a policy.
- Pay for your policy and download a certificate.
Insureon's licensed insurance agents work with top-rated U.S. insurance companies to find affordable coverage that fits your woodworking or carpentry business, whether you work independently or hire employees or subcontractors.
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FAQs about woodworker business insurance
Review answers to frequently asked questions about insurance and licensing for woodworkers.
Do woodworking contractors need a license or certification?
The type of work you do and the laws in your state will determine whether you need a license, permit, or certification for your woodworking business. Here are a few examples:
- You might need a contractor's license. In some states, you'll need to get licensed to do certain types of carpentry work, such as house framing. Whether you need a contractor's license typically depends on the value of the projects you work on. To get licensed, you may need to have a certain amount of experience or pass an exam.
- You might need a building permit. State laws determine when you need a building permit for a project, such as a deck, shed, or fence. New construction and home renovation often require a permit.
- Licenses and certifications help you win contracts. Even when it's not required, a license or certification can help raise your business above the competition when trying to get a contract or win a bid. It also helps to be bonded and insured.
What other types of coverage are recommended for a woodworking business?
Small business owners in the woodworking industry and construction industry often rely on these additional insurance policies as part of their risk management strategy:
- Commercial umbrella insurance activates to provide coverage when your underlying general liability insurance, commercial auto insurance, or employer's liability insurance policy reaches the limit on a claim.
- Surety bonds provide a financial guarantee that your woodworking business will comply with regulations and fulfill the terms of its contracts. Common types of construction bonds include bid bonds, performance bonds, and fidelity bonds.
- Installation floater insurance helps pay for financial losses if materials awaiting installation are damaged or stolen at a jobsite. It's a type of inland marine insurance.
- Builder's risk insurance, also called course of construction insurance, covers damage to a structure in progress. It helps businesses recover from fires, storms, or vandalism that lead to financial losses at a construction site.