When you also have equipment or operate from an office
All Basic plan benefits and:
With the different carpentry work taken on by all the time, there is much more to cover than is expected. As a contractor you drive to others’ locations to complete jobs, you work with dangerous tools and equipment, and you transport those things as well. Protect yourself, your employees, and your property from the risks of your daily work, as well as potentially unhappy clients who could sue for incomplete jobs and poor workmanship.
Cover the risks and reduce the chance of losing your business in the event of damage, mistakes and accidents within your business with General Liability. It is one of the most important carpentry insurances because it is relied upon by companies in most every industry. The insurance will cover the property damage, bodily injury, personal injury, and related cases.
Any worker can get disabled at the time of their working career, and when that happens, you'll be glad that you have Disability Insurance. Disability Insurance pays some of the worker's salary when the worker becomes disabled; thus unable to work at his or her job. This covers the medical care or for long-term care services.
Most states require this insurance if you meet the minimum number of employees. Workers' Comp protects a Carpenter by paying medical expenses related to an employee illness or injury and the earnings lost during recovery. It makes sure that when your business is responsible, all employee bills are paid and the worker can't file a negligence claim against your business.
To protect your carpentry business from the cost of auto accidents you'll need Commercial Auto insurance. This carpentry insurance will cover accidents that may happen while visiting locations, making deliveries or any other activities that involve on-the-job driving in company vehicles.
The cost of insurance depends on the coverage you buy for your business. General Liability insurance, an essential coverage for your business, usually costs $350 to $1,000 per year. If you add property and have a couple of employees the cost can raise to around $1500 to $2000, and Umbrella coverage above the base GL is around $1000 for your business.
Without insurance, your carpentry business could face potential losses from income loss, liability claims, employees' injuries, illness or death, property damage, theft, loss or vandalism. Insurance can help mitigate the costs related to those risks.
Yes, General Liability is your first defense against individuals claiming bodily injury and property damage caused by your work and your business. It also often includes a provision for Products and Completed Operations, which is coverage for claims made from the finished product you leave with your customers, long after you're done.
When your carpentry business is hired on a big job, a construction surety bond is often required. It guarantees that you will perform as promised within the contract. If you fail to meet your client's expectations, the surety company will pay the damages. A bid bond is also sometimes requested to protect the obligee in the event that the winning contractor is unable to take the job after securing the bid. This reimburses them from the difference between the principal's bid and the next lowest bidder.
There are many different types of insurance for carpenters, and knowing what you need is crucial to protecting your business properly. When it comes to types of insurance for carpenters, there are several factors that will influence the types of policies you will need, such as the size of your business, the types of jobs you are performing, and whether or not you have employees.
Some basic insurance policies that all carpenters need include:
Carpenter Liability Insurance: Generally you will purchase a business owner’s insurance policy (BIP), which will contain both Liability and Property coverage. The Liability portion of your coverage will take care of claims alleging bodily injury and property damage that arise out of your work. Property will cover your business personal property as well as the building if you own it.
Equipment Floater: Your equipment is essential to your business as a carpenter. If your equipment is stolen, damaged, or lost, you will need to replace it quickly so that you can continue to complete jobs and make an income to support yourself and your family.
Commercial Auto: Using your vehicle for work purposes usually means it cannot be insured on a Personal Auto policy. If you have a van, truck, or even private passenger automobile that you use for your carpenter business, you will need Commercial Auto insurance.
Workers Compensation: If you have employees, or are doing jobs for a General Contractor, you probably need Workers Compensation insurance. It will provide coverage for your employees if they suffer a work-related injury or illness. Your employees will appreciate that they will not have to worry about lost wages and medical expenses if something unforeseen happens.
Starting your own business can be a thrilling, adventurous and rewarding experience. One of the things that anyone starting a business has to consider is whether or not insurance is necessary. Even as a sole proprietor, you have a number of business risks that need to be protected, same as if you were a corporation or a limited liability company. Understanding the risks you face is crucial when purchasing insurance for a self-employed carpenter. Plus, you can think of it as more of an investment than an expense, since it will help you pay less in the future should something occur that you don’t expect.
Unfortunately, by virtue of living life and working, there is always going to be the risk of something happening that cannot be prevented. Even if you are the most experienced carpenter, you are still human and accidents can happen. Insuring these things could make or break your business, and ultimately your wallet. Protecting aspects such as your liability, business personal property, equipment, errors or omissions, as well as your employees is just the start of what you should consider when becoming a self-employed carpenter. Even if you don’t have employees, you might use subcontractors and that can open you up to a whole new set of risks you might not have considered before.
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