Carpenter Insurance Specialists: Same Day Coverage
Get tailored and hassle-free carpenter insurance with ContractorNerd
CONTRACTOR-SPECIALIST INSURANCE PROVIDERS
We cover what matters on the job.
Most insurance agents don’t understand what it’s like to frame a house, hang cabinets, or work with power tools all day. We do. Carpentry insurance is our specialty, so we know the risks you face from the first cut to the final trim.
General Liability
Covers you when a saw damages a client’s property or finished work gets dinged before handoff.
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Worker’s Compensation
Nail gun injuries, falls from scaffolding, back strain from hauling lumber. Your crew’s covered.
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Commercial Auto
Protects your truck and tools so one accident doesn’t shut down your operation.
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Builders Risk
Protects your lumber, materials, and work in progress from theft, fire, or weather damage before the job’s done.
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Carpenter Insurance, Remodeled
Carpenter insurance is essential, but finding coverage that actually fits your trade can be a hassle. At ContractorNerd, we’ve built a quote platform specifically for carpenters and woodworking contractors.
Faster, Simpler, Better
As trades-only specialists focused on carpenters, we’ve completely rebuilt the insurance experience to be faster, simpler, and more effective.
Compare in one place
Our technology connects directly with insurers who understand carpentry risks, while our team of specialized agents provides expert guidance throughout the process.
Solutions for Any Size
Whether you’re a one-man framing crew or run a full cabinet shop, our platform delivers exactly what you need without the complexity or delays of traditional insurance.
What Is Carpenter Insurance?
ContractorNerd has done research to bring you a clear picture of insurance requirements and needs across the United States. Our analysis of over 800 carpenter insurance quotes across all 50 states provides unprecedented transparency on what coverage you need and current market rates.
Key Takeaways
What Carpenter Insurance Do You Need?
For carpenters, securing the right coverage is crucial and needs change based on the size and stage of your business. Here’s a guideline:
For Solo Carpenters
1-3 Employees
For Small Carpentry Businesses
5+ Employees
For Established Carpentry Businesses
Essential Coverage
Carpenter Liability Insurance (General Liability)
Your core protection against property damage and bodily injury claims. This is what customers mean when they ask if you’re insured.
Ongoing Operations
Covers damage while you’re working on-site
Completed Operations
Critical protection for issues discovered after you leave, like a deck railing that fails or cabinets that pull away from the wall
Contractor License Bonds
Required in most states for your contractor license. Pro tip: Buy in 3-year increments when possible to avoid lapses and save money (typically costs a few hundred dollars).
Recommended Additional Coverage
Tools and Equipment Coverage (Inland Marine)
Protects your saws, nailers, compressors, and specialty woodworking tools
Contractor’s Errors & Omissions
Covers claims of faulty workmanship, materials, or products
Commercial Auto
Required if you have a dedicated work vehicle
Workers Compensation
Required when you hire employees (not needed for subcontractors)
Installation Floater
Protects expensive materials in transit or stored at job sites (custom cabinets, trim packages, hardwood flooring)
Commercial Property
Covers your workshop, lumber storage, and offices
Umbrella Insurance
Extra liability protection as your revenue and project volume grow
Employment Practices Liability (EPLI)
Protection against employee-related lawsuits
For Solo Carpenters
Essential Coverage
Recommended Additional Coverage
For Small Carpentry Businesses
2-3 Employees
All previous coverages, plus:
For Established Carpentry Businesses
All previous coverages, plus:
Carpenter General Liability Insurance Coverage
If there was a single coverage critical for all Carpenters, this is it. General Liability Insurance provides essential protection for carpentry contractors because your work involves many risks every day: power tools, heights, heavy materials, sawdust, and debris on client property.
Core protection includes
Bodily Injury
A client, visitor or bystander getting hurt due to job site hazards or work activities.
Property
Damage
Accidental damage to a client’s home, floors, walls, fixtures, or belongings.
Add-On
Completed
Work
Lawsuits over issues from past completed jobs, such as a failed deck railing or cabinets that pull away from the wall.
Bodily Injury
A client, visitor or bystander getting hurt due to job site hazards or work activities.
Property
DamageAccidental damage to a client’s home, floors, walls, fixtures, or belongings.
Add-On
Completed
WorkLawsuits over issues from past completed jobs, such as a failed deck railing or cabinets that pull away from the wall.
Liability Limits for Carpenters
Typically, $1 million per occurrence and $2 million aggregate. Experts recommend a minimum of $1 million for adequate protection. Upgrading from $500k to $1M coverage usually slightly increases premiums but provides significantly better defense.
Classification Codes
Carpentry contractors typically use class codes 91340, 91341, or 91342 depending on the type of work performed.
Key Factors Influencing Liability Quotes
Revenue
Higher revenue implies more work and higher risk, leading to increased quotes.
Policy Limits
Higher limits for specific projects or contracts may raise quotes.
Claims History
A history of frequent claims can result in higher quotes, similar to auto insurance.
Location
States with stricter regulations may have higher insurance quotes.
Services Offered
Different carpentry specialties have varying risks, affecting the insurance quote.
How Much Does Carpenter Insurance Cost?
Quote Study Findings
Quotes generally amount to 1.3% to 3.1% of annual revenue. Our analysis of over 800 General Liability insurance quotes from leading carriers reveals significant variations across different states and business sizes.
We analyzed quotes based on these business profiles
Revenue
$150K
1 owner with ~10% subcontracting and 5+ years operating without claims
Revenue
$500K
1 owner and 3 employees with ~10% subcontracting and 5+ years operating without claims
Revenue
$1M
1 owner and 5 employees with ~10% subcontracting and 5+ years operating without claims
We analyzed quotes based on these business profiles
Revenue Level
National Average
Favorable Rate
Potential Savings
Low % of Revenue
High % of Revenue
$150,000
$3,580
$2,150
40%
1.6%
3.1%
$500,000
$9,710
$6,600
32%
1.3%
2.5%
$1,000,000
$21,040
$13,200
37%
1.4%
2.7%
State-by-State Pricing Insights
To help carpentry contractors better understand regional pricing variations, we’ve developed an in-depth resource examining carpenter insurance premiums in every state nationwide. This state-specific analysis reveals how local factors impact your actual costs and identifies opportunities for savings in your market. Explore our comprehensive guide to carpenter insurance cost by state for detailed premium breakdowns.
Carpenter Workers Comp Insurance Requirements
Workers’ Compensation Insurance is essential for carpenters, providing coverage for employee injuries or illnesses related to work. The premiums are based on job risk, classified by the National Council on Compensation Insurance (NCCI) into class codes. Carpentry contractors typically fall under codes 5403, 5437, or 5645, with rates usually between $4.00 to $12.50 per $100 of employee payroll annually.
WC Policy Limits for Carpenters
These are often unlimited but can vary according to state regulations.
WC Rates for Carpenters
Between $4.00 and $12.50 per $100 of payroll.
Key Factors Influencing WC Premiums for Carpenters
Class Codes
Group employees by job type and risk; higher risk means higher premiums. Carpenters commonly use codes 5403, 5437, and 5645.
State Regulations
States dictate workers’ compensation laws, influencing benefits and baseline rates. Geographic differences in living and healthcare costs also affect premiums.
Experience modifier
Reflects your safety record, starting at 1.0 and adjusting based on claims history. More incidents result in higher modifiers and premiums.
Payroll Size
Calculated as (payroll / $100) * rate * experience modifier, with larger payrolls leading to higher premiums
This insurance is typically mandatory if you have employees. It covers employee medical expenses, rehabilitation, lost wages, and even death benefits in case of job-related injuries or illnesses. For employers, it also provides legal coverage and compensation in case of employee lawsuits related to occupational injuries or illnesses.
If you’d like to learn more and try our calculator, check our guide on Workers Compensation Insurance for Carpenters.
Insurance For Carpentry Business That Expands Into Other Trades
If you’re a carpenter who’s branched out into decking, roofing, or general contracting, your standard carpentry insurance isn’t going to cut it. The work is different, the risks are different, and your coverage needs to reflect that.
Taking on roofing work? Framing the roof is just part of the job. Shingle installation, flashing, and leak claims need roofing contractor coverage. Your carpentry policy won’t protect you when someone claims their roof was installed incorrectly.
Adding painting to your services? Many carpenters handle finish painting after trim work. But paint overspray, surface damage, and coating failures require painter insurance, not just carpentry coverage.
Installing flooring? Hardwood, laminate, and tile installation have their own risks. Subfloor damage, improper installations, and material claims need flooring contractor insurance to be properly covered.
Doing electrical rough-ins or hookups? If you’re wiring outlets, running circuits, or handling any electrical work, you need electrician insurance. Electrical claims are serious and your carpentry policy won’t cover them.
Running a millwork or cabinet shop? Custom fabrication carries different risks than on-site carpentry. Shop equipment, product liability, and installation claims require millwork insurance tailored to manufacturing operations.
The bottom line: If you’re doing the work, you need the insurance. Don’t assume your carpentry contractor policy covers these expanded services. A single uncovered claim can wipe out years of profit.
Talk to your insurance provider about adding trade-specific coverage, or you’re gambling every time you take on one of these jobs.
Insurance For Carpentry Business That Expands Into Other Trades
Additional Carpenter Insurance Coverage Options
As your carpentry business expands, these additional coverage types merit careful consideration beyond your core insurance portfolio:
Tools & Equipment Coverage
(Inland Marine Policy)
Specially designed to protect your saws, nailers, compressors, and specialized woodworking tools whether stored in your work truck or deployed at job sites. This coverage addresses theft, accidental damage, or mysterious disappearance.
Professional Liability Insurance
Safeguards your business when clients allege professional mistakes or oversights in your carpentry services. Whether it’s claims of structural issues, improper installations, or failed joinery, this coverage handles defense costs and damages. Protection includes negligent workmanship allegations, attorney fees, and court awards.
Commercial Auto Coverage
Essential protection for your trucks and vans used to haul lumber, tools, and materials daily. Standard personal auto coverage excludes commercial carpentry work, leaving dangerous gaps.
Carpenter License Bonds
These financial guarantees demonstrate your commitment to quality workmanship while satisfying state licensing boards. Bond requirements commonly range $5,000-$25,000, with annual premiums representing 1-3% of the bond amount. Your credit profile significantly influences pricing:
Quote Summary by Revenue Level
Bond Required
Top-Tier Credit
Standard Credit
Challenged Credit
$5,000
$100-$150
$150-$200
$200-$400
$10,000
$100-$300
$300-$500
$500-$1,000
$15,000
$150-$400
$400-$750
$750-$1,500
$20,000
$180-$500
$500-$1,000
$1,000-$2,000
$25,000
$200-$500
$500-$1,200
$1,200-$2,500
Regulations vary dramatically. California contractors need $25,000 bonds while Texas imposes no blanket requirement.
Commercial Property and Business Personal Property
Comprehensive coverage securing your workspace and materials (lumber, trim, hardware, fasteners) from perils including fire, criminal activity, storm damage, and malicious mischief. Vital for operations maintaining workshops, lumber storage, or cabinet showrooms.
Carpentry Contractor Business Package
Intelligently combines liability and property coverages into a streamlined policy. Perfect for established carpentry shops with brick-and-mortar locations, addressing customer accidents, property destruction, equipment loss, and revenue interruptions. Often delivers cost savings versus standalone policies, though customization options become limited.
Excess Liability / Umbrella Coverage
Instead of boosting individual policy limits, this coverage stacks additional protection atop your existing liability, fleet, and workers’ compensation policies. When catastrophic claims exhaust primary coverage, this backup fund activates.
Frequently Asked Questions
What kind of insurance do carpenters need?
You need General Liability at minimum – that’s what homeowners mean when they ask if you’re insured. Also get Tools coverage (trust me, tool theft sucks) and E&O for when something goes wrong. Once you hire help, Workers’ Comp is required – use codes 5403/5437/5645. Don’t forget Commercial Auto if you’ve got a work truck.
What is the best insurance for carpenters?
Go with $1M/$2M General Liability using the right class codes (91340 for residential, 91341 for trim/cabinets, 91342 for commercial). Shop around – prices vary wildly between carriers. You’ll also want Workers’ Comp and Tools coverage. E&O is worth it for the peace of mind.
How much does insurance cost for a carpenter?
GL runs about 1-3% of what you make. If you’re doing $150k/year, expect $2,150-$3,580. At $500k revenue, you’re looking at $6,600-$9,710. Workers’ Comp hits you for another $4-$12.50 per $100 in payroll. Yeah, it’s not cheap.
What is carpenter insurance?
It’s business insurance specifically for carpenters with class codes that match what you actually do (91340 for residential framing, 91341 for finish work, 91342 for commercial). Covers you when clients trip over your tools, you damage their property, or your work has issues. Basically keeps you from losing everything if something goes sideways.
How much does a $1,000,000 liability insurance policy cost?
Depends on your revenue and operations. Small guys ($150k/year) pay $2,150-$3,580. Mid-size shops ($500k) are looking at $6,600-$9,710. If you’re doing $1M+, expect $13,200-$21,040. Shop around though – seen guys save 30-40% just by getting multiple quotes.