Carpenter insurance shouldn’t be as complex as the custom creations you build. At ContractorNerd, we’ve transformed how carpenters shop for insurance – making it incredibly easy to tailor coverage, get multiple quotes, and buy insurance in minutes. As trades-only specialists powered by thoughtfully designed technology, we’ve completely remodeled the contractor insurance experience to be faster, simpler, and more effective.
We’ve analyzed quotes for over 800 carpenters from leading insurance carriers across all 50 states to provide transparency on:
- What coverage you actually need
- What it should cost based on your business size
- How to get the most competitive rates
Ready to protect your carpentry business properly? Get instant quotes, today.
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Carpenters Insurance – What Do You Need?
For carpenters, selecting the appropriate insurance coverage is crucial and varies based on the size and stage of your business. Here’s a guideline:
- Sole Proprietor Carpenters:
- Carpenter Liability (aka General Liability) insurance is fundamental covering property damage and non-employee bodily injury. Many customers will ask if you’re licensed and insured; this is the insurance they are asking about.
- Tools and Equipment (aka Inland Marine) coverage is also recommended. This covers your tools which enable you to do good work.
- Contractor’s E&O (aka Faulty Workmanship) coverage protects you against claims arising out of faulty workmanship, materials or products.
- Commercial Auto coverage is needed if you have a truck you use exclusively for work.
- Small Carpentry Business (2-3 Employees):
- Workers compensation is required when you hire employees (not subcontractors)
- Commercial property is important to protect workshops, lumber storage areas, and offices.
- Umbrella Insurance (or higher limits on your Carpenter Liability) should be considered as your business grows in revenue and project count.
- Established Carpentry Business (5+ Employees):
- Buildings & Contents coverage protects your facility and its contents against fire, theft, and damage – essential for carpenters with workshops or storage spaces due to fire risks from wood materials.
- Installation Floater covers materials, equipment and property in transit to or stored at job sites awaiting installation – critical for carpenters who fabricate custom items like cabinets, countertops, or built-ins that need transportation and on-site storage before final installation.
- Employment practices liability insurance (EPLI) to protect owners against potential lawsuits from employees.
Carpenter Liability Insurance – aka General Liability
If there was a single coverage critical for all Carpenters, this is it. Carpenters need this insurance because your work involves many risks every day – power tools, heights, debris, etc. Types of claims commonly faced include:
- Property Damage: Accidental damage to a client’s building, floors, walls, etc.
- Bodily Injury: A client, visitor or bystander getting hurt due to your work activities.
- Defective Products: Lawsuits over an installed product that turns out defective.(Add-On)
- Completed Work: Lawsuits over issues from past completed jobs. (Add-On)
Liability Limits for Carpenters: Most carpenters get $1 million per occurrence and $2 million in aggregate. Lower limits are available, but the typical cost of increasing coverage from $500,000 to $1 million is minimal and significantly enhances defense capabilities, so most go with $1M / $2M limits.
Liability Premiums for Carpenters: Generally, 1% to 3% of your annual revenue. Our summarized quote data below shows how this average premiums from leading carriers changes by State. These average premiums are specific to the carpentry industry.
Key Factors Influencing Carpenter Liability Premiums Include:
- Revenue: Higher revenue means more work and potential claims
- Policy Limits: Higher limits means more risk and higher premiums
- Claims History: Clean record means lower premiums
- Location: State regulations and cost of claims impacts premiums
- Class Codes: Different carpentry specialties carry varying risks; here are some class codes that carpenters use; most commonly 91340, 91341, 91242:
- Class 91340: Residential Carpentry – Cover remodeling, repairs, additions under 3 stories, basic electrical work, limited roofing/foundation work (10% revenue cap), work within 12ft below grade, retaining walls under 6ft, slopes under 20°.
- Class 91341: Interior Carpentry – Covers interior finishing work including cabinet installation, shelving, stairs, woodwork, trim, molding, baseboards, and countertops (no tile).
- Class 91342: Commercial Carpentry – Covers commercial remodeling, tenant improvements, and repairs including electrical (≤480V), exterior work (≤3 stories), limited roofing/foundation work (10% revenue cap), retaining walls under 6ft, and below-grade work up to 12ft.
Carpenter Insurance Cost – ContractorNerd’s Quotes Study
We crunched the numbers with over 800 General Liability insurance quotes from leading carriers for carpenters across different states and business sizes. While precise rates are highly individualized, average annual premiums for carpenters typically range from:
- Small Carpenter ($150K Revenue, 1 employee) – $1,500 to $3,600
- Medium Carpenter Contractor ($500K Revenue, 3 employees) – $4,000 to $9,700
- Large Carpenter Contractor ($1M Revenue, 5 employees) – $8,200 to $21,000
New carpentry ventures starting without history may pay 25%+ more initially, as insurers need time to evaluate the risk. After successfully operating for several years without incidents, premiums often decrease, reflecting a more favorable risk assessment.
Below is a table summarizing typical general liability insurance premiums for carpenters and carpentry contractors based on a sample of states. Each scenario assumes the following for each revenue size:
- $150K Revenue: Assumes 1 owner with ~10% subcontracting costs and 5+ years of operating without claims.
- $500K Revenue: Assumes 1 owner and 3 employees with ~10% subcontracting costs and 5+ years of operating without claims.
- $1M Revenue: Assumes 1 owner and 5 employees with ~10% subcontracting costs and 5+ years of operating without claims.
| State | $150K Revenue | $500K Revenue | $1M Revenue | |||
| Avg. Premiums | % of Revenue | Avg. Premiums | % of Revenue | Avg. Premiums | % of Revenue | |
| California | $4,490 | 3.0% | $11,990 | 2.4% | $19,050 | 1.9% |
| Texas | $4,080 | 2.7% | $11,610 | 2.3% | $20,770 | 2.1% |
| Florida | $4,890 | 3.3% | $14,890 | 3.0% | $28,420 | 2.8% |
| Massachusetts | $3,230 | 2.2% | $9,510 | 1.9% | $18,890 | 1.9% |
| Pennsylvania | $4,630 | 3.1% | $14,800 | 3.0% | $32,250 | 3.2% |
| Illinois | $4,550 | 3.0% | $13,110 | 2.6% | $27,320 | 2.7% |
| Ohio | $2,410 | 1.6% | $7,260 | 1.5% | $14,350 | 1.4% |
| Georgia | $2,510 | 1.7% | $7,240 | 1.4% | $14,420 | 1.4% |
| North Carolina | $2,150 | 1.4% | $6,270 | 1.3% | $13,550 | 1.4% |
| Michigan | $2,910 | 1.9% | $8,680 | 1.7% | $16,590 | 1.7% |
If you’re interested in learning about carpenter insurance in your state, we’ve created state-specific guides tailored for all 50 states. Feel free to explore these resources to ensure you’re well-informed and adequately protected in your carpentry profession.
Make sure to explore the various types of carpenters who should have insurance.
Potential Savings on Liability Insurance for Carpenters
Working with an independent insurance agent who specializes in Carpenter Liability can yield some savings and better coverage terms. Below are real savings for carpenters at various revenue levels – same business, different carrier. If your premium looks more in-line with the averages above, we suggest you get quotes to see if you’re able to get the same or better coverage with a more favorable rate.
| State | $150K Revenue | $500K Revenue | $1M Revenue | |||
| Favorable Rate | Potential Savings | Favorable Rate | Potential Savings | Favorable Rate | Potential Savings | |
| California | $2,380 | 47% | $8,200 | 32% | $15,180 | 20% |
| Texas | $2,130 | 48% | $6,560 | 43% | $12,580 | 39% |
| Florida | $4,010 | 18% | $11,560 | 22% | $13,400 | 53% |
| Massachusetts | $1,720 | 47% | $5,530 | 42% | $10,100 | 47% |
| Pennsylvania | $3,420 | 26% | $10,630 | 28% | $23,430 | 27% |
| Illinois | $2,150 | 53% | $7,050 | 46% | $14,970 | 45% |
| Ohio | $1,310 | 46% | $4,040 | 44% | $8,420 | 41% |
| Georgia | $1,780 | 29% | $4,920 | 32% | $10,760 | 25% |
| North Carolina | $1,050 | 51% | $2,750 | 56% | $5,880 | 57% |
| Michigan | $1,620 | 44% | $5,120 | 41% | $9,320 | 44% |
Workers’ Compensation Insurance for Carpenters
For carpentry businesses with employees, it’s essential to have Workers Compensation Insurance for Carpenters. This mandatory coverage offers critical benefits such as medical care, partial wage replacement, rehabilitation services, and death benefits for employees who suffer job-related injuries or illnesses. Workers’ compensation insurance premiums are based on the job-related risk, which is categorized into class codes. Common class codes for residential carpenters are 5437, 5403, and 5645. The typical rate ranges from $4.23 to $12.52 per $100 of payroll annually per employee.
- Code 5645: Single-family residential carpentry (≤3 stories) when one contractor handles the entire project – includes framing, roofing, siding, interior finish work, decks, fencing and detached structures.
- Code 5437: Interior finish carpentry including paneling, molding, flooring, mantels, stairs, cabinets, and counters – typically requiring skilled craftsmanship.
- Code 5403: General carpentry including wooden bridges, decks, silos, tanks, gazebos, pergolas, trellises, wood/plastic playground equipment, and termite-related repairs.
WC Policy Limits for Carpenters: the policy limits for workers’ compensation typically have no cap but may vary according to state regulations.
WC Rates for Carpenters: the typical premium ranges from $4.23 to $12.52 per $100 of payroll.
Factors Influencing WC Premiums for Carpenters:
- Class codes: Different rates for different classes based on risk
- Experience modifier: Premium multiplier tied to claims history and experience
- Payroll: Premium = (payroll/100) × rate × experience modifier
- State: Local laws and costs affect rates
Most and least expensive states for Carpenters Workers Compensation Insurance:
| State | Premium per $100K Payroll |
| Georgia | $26,200 |
| South Carolina | $14,870 |
| Illinois | $14,490 |
| New Jersey | $14,270 |
| Louisiana | $13,680 |
| State | Premium per $100K Payroll |
| North Dakota | $3,620 |
| Wyoming | $3,900 |
| Ohio | $3,960 |
| Texas | $3,970 |
| Indiana | $4,200 |
If you’d like to learn more, see other state rates and try our calculator, check our guide on Workers’ Compensation Insurance for Carpenters.
Additional Insurance Carpenters Should Consider
Beyond the essential policies detailed above, here are additional insurance types carpenters may need as their business grows:
Tools & Equipment Insurance (Inland Marine)
Inland Marine Insurance protects tools and equipment during transit and at job sites against loss, theft, or damage. Annual premiums range from $200-$2,000, with policy limits of $5,000-$15,000+. Most policies have per-item limits (typically $5,000).
Contractors’ E&O Insurance
Protects against business mistakes and negligence claims in construction work. Covers costs if clients claim faulty work, wrong installations, or subpar service. Includes professional negligence claims, legal defense, and judgments. Annual premiums range from $50-$500, with policy limits of $10,000-$1M+.
Commercial Auto Insurance for Carpenters
Commercial auto insurance protects work vehicles and covers liability from accidents during business operations. Personal auto policies don’t cover business use. Premiums range from $1,500-$3,050 per vehicle annually. Standard limits are $100K per person, $300K per accident, and $100K property damage, though higher limits ($500K-$1M) are recommended for comprehensive protection.
Bonds for Carpenters
Surety bonds guarantee work quality and fulfill licensing requirements. Typical bond amounts range $5,000-$25,000, with carpenters paying 1-3% as premium. Premium costs vary by credit score:
| Bond Amount | Excellent Credit | Good Credit | Bad 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 |
Requirements vary by state – California requires $25,000 bonds while Texas has no statewide mandate.
Commercial Property Insurance for Carpenters
Commercial property insurance protects buildings and contents (tools, lumber, equipment) against fire, theft, vandalism, and weather damage. Essential for carpentry businesses with workshops, lumber yards, or showrooms. Annual premiums range $1,000-$5,000, based on property value, location risks (disasters, crime), and building construction type.
Business Owner’s Policy (BOP) for Carpenters
A Business Owner’s Policy bundles general liability and commercial property insurance. This can be a better option for businesses with physical locations, it covers customer injuries, property damage, business assets, and business interruption. Typically you will see lower premiums than separate policies but less flexibility. Premiums based on business size, location, claims history, and additional coverage added.
Commercial Umbrella Insurance for Carpenters
An alternative to increasing your limits on your general liability policy is an umbrella policy. This type of insurance provides additional liability coverage, extending beyond the limits of your standard policies like general liability, auto liability, and employer’s liability. In the event of a substantial claim that surpasses the limits of your primary policies, umbrella insurance steps in, offering extra financial protection. Typically adds $1M coverage (up to $2M+ available). Annual premiums: $500-$1,000.
Employment Practices Liability Insurance for Carpenters
Protects against employee claims of discrimination, harassment, wrongful termination, and other workplace issues. Annual premiums: $1,000-$5,000. Policy limits: $100,000-$1M.
Cyber Liability Insurance for Carpenters
Protects against data breaches and cyberattacks, covering investigation, customer notification, credit monitoring, PR, and legal costs. Policy limits: $100K-$1M. Annual premiums: $300-$1,000.
Carpenter Insurance, Remodeled
At ContractorNerd, we understand carpenters face unique risks that require specialized coverage. Our platform makes it incredibly easy for small-to-mid-sized carpentry businesses to tailor protection, get multiple quotes, and buy insurance in minutes.
- No insurance jargon – just clear, practical advice
- Competitive rates from top-rated insurance carriers
- Expert agents who understand carpentry risks
- Coverage specifically tailored to your carpentry operations
Stop overpaying for generic policies. Experience contractor insurance, remodeled. Get instant quotes today.