Why do cabinet makers need insurance?
When you work with tools, insurance is essential. Business insurance covers medical bills if an employee or a customer is injured in your wood shop. It can also pay for property damage, data breaches, and car accidents.
Find affordable coverage
Cabinet makers can save money by comparing quotes from top-rated insurance companies.
Fill out Insureon's easy online application to get free quotes and advice from a licensed agent.
What types of cabinet maker insurance do I need?
These insurance policies cover the most common risks of cabinet making.
General liability insurance
A general liability policy covers third-party business risks, such as a customer who trips on a piece of lumber in your shop and suffers an injury. It's often required for a commercial lease.
- Accidents that harm customers
- Copyright infringement lawsuits
- Product liability insurance
Business owner’s policy
A business owner's policy, or BOP, is a cost-effective way for cabinet makers to buy general liability coverage and commercial property insurance together.
- Customer bodily injuries
- Advertising injuries
- Business property damage
Workers’ compensation insurance
Most states require workers' comp for cabinet manufacturers that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Lawsuits from employee injuries
Cyber insurance
Cyber insurance helps cabinet manufacturers recover financially after a data breach or cyberattack. It's strongly recommended for any business that stores customer information.
- Customer notification costs
- Fraud monitoring services
- Data breach investigations
Commercial auto insurance
This type of insurance pays for legal fees and damages in the event of an accident involving a cabinet business's vehicle. Almost every state requires this policy for vehicles owned by a business.
- Medical bills from an accident
- Property damage caused by your vehicle
- Auto accident lawsuits
Commercial umbrella insurance
Umbrella insurance boosts coverage on a cabinet maker's general liability insurance, commercial auto insurance, or employer’s liability insurance once the limit is reached.
- Customer injury lawsuits
- Auto accident lawsuits
- Employee injury lawsuits
How much does cabinet maker insurance cost?
A cabinet maker who works independently can expect to pay less for insurance coverage than a larger manufacturer.
Factors that affect manufacturer insurance premiums include:
- Services offered, such as cabinet installation
- Business operations and location
- Tools, equipment, and other business property
- Whether you have employees or subcontractors
- Types of insurance purchased
- Policy limits and deductibles
- Claims history
How do I get cabinet maker insurance?
It's easy to get insurance for cabinet makers 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. You can buy a policy online and get a certificate of insurance (COI) 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. providers to find the right insurance solutions for your cabinet-making business's unique risks, whether you work independently or hire employees.
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FAQs about business insurance for cabinet makers
Review answers to commonly asked questions about cabinet manufacturer insurance and requirements.
Do cabinet makers need professional liability insurance?
Most cabinet manufacturers depend on general liability insurance to protect against the risks of working with customers and clients. In some cases, you'll want professional liability insurance as well.
Here's an overview of the protection offered by these policies:
- General liability insurance covers accidents that injure a customer or damage their property. Every cabinet maker should invest in this coverage, especially if you have a showroom or allow customers into your woodworking shop.
- Professional liability insurance covers negligent acts that harm a customer or client, such as a design flaw or damaging advice. Cabinet makers who are involved in design or consulting should invest in this coverage.
Both policies will cover your financial losses in the event of a lawsuit, such as attorney’s fees, court costs, and a settlement or judgment. The specific coverage you need depends on the type of lawsuit you are most likely to face.
Why is product liability insurance important for cabinet makers?
Product liability insurance, also called products-completed operations insurance, is an essential coverage for cabinet manufacturers.
This policy pays for legal defense costs related to harm caused by your product or completed service. It provides coverage for a wide range of product claims, such as:
- A customer is cut by the sharp edge of a cabinet.
- An improperly installed cabinet falls off a wall, breaking everything inside it.
- A top-heavy cabinet tips over and injures a child.
- Faulty instructions or a lack of warnings cause someone to be harmed.
Product liability coverage is usually included in your general liability policy.
What other types of coverage are recommended for cabinet makers?
A comprehensive risk management plan includes coverage for a wide range of liabilities. In addition to the policies mentioned above, cabinet makers should consider the following types of coverage:
- Builder's risk insurance covers structures in progress in the event of fire, theft, or vandalism. It insures the building, materials, and other items at a construction site, such as cabinets awaiting installation.
- Business interruption insurance, also called business income coverage, pays for lost income and operating expenses if your manufacturing business is forced to close temporarily.
- Surety bonds provide financial reimbursement for your clients if your cabinet business is unable to fulfill the terms of a contract.
- Inland marine insurance covers your carpentry tools and equipment while they're in transit or at a jobsite. A standard commercial property policy only covers items at your business address. Some types of inland marine coverages include contractor's tools and equipment insurance and installation floater insurance for materials awaiting installation.
- Equipment breakdown insurance covers financial losses if a table saw or other crucial piece of equipment breaks down unexpectedly. However, it doesn't cover wear and tear.
- Environmental insurance pays for legal fees and cleanup costs if your cabinet shop is sued for pollution, such as a chemical spill or exposure to wood dust.
Is a cabinet maker the same as a carpenter?
A cabinet maker is a specific type of carpenter, but they don't always need a carpentry license. Here's how it typically works:
- A cabinet maker does not need a carpentry license so long as they only build cabinets, and do not install them or work as a contractor.
- Cabinet installers are usually considered carpenters and must obtain the necessary licensure. Carpenters do a broad range of work, from millwork to structural framing of buildings.
If you only make cabinets and do not install them, then you are likely exempt from your state's carpentry licensing requirements, though it's still a good idea to carry insurance.
Insureon's licensed agents can help you find the best carpentry insurance for your business, whether you work only on cabinets or take on a wide range of projects.