Carpenter Business Insurance Cost & Quotes (2026)
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Carpenter insurance typically costs between $4,800 and $52,000 annually for a $500K operation with $200K in payroll. That wide range comes down to two factors: what coverage you need and where you operate.
Every carpentry contractor needs two core policies. General liability (GL) covers third-party property damage and bodily injury claims, while workers’ compensation (WC) protects employees and is mandatory in most states once you hire.
But here’s what most carpenters don’t realize: your classification matters as much as your zip code.
A cabinet installer in Oregon might pay $4,800 annually for full coverage. A framing carpenter in Georgia doing residential construction? Over $52,000. The difference isn’t skill or safety record. It’s how your work gets coded and where you do it.
Why the massive swing?
General liability scales with revenue and varies modestly by state, typically running 1.3% to 2.5% annually. A $500K carpentry operation pays somewhere between $6,500 and $12,500 depending on carrier and location.
Workers’ compensation is where it gets painful. Carpenters face two very different class codes:
Code 5437 (Cabinet/Trim Work): Oregon: $2.50 per $100 of payroll Minnesota: $11.75 per $100 of payroll
Code 5645 (Residential Framing): North Dakota: $3.51 per $100 of payroll Georgia: $43.42 per $100 of payroll
On $200,000 in payroll, a framing carpenter in Georgia pays $86,840 in workers’ comp alone. That same payroll for cabinet work in Oregon costs $5,000. The classification you land in can swing your total insurance by $80,000 or more.
The silver lining: Our analysis of 1,000+ quotes shows that strategic shopping can cut GL premiums by 35% to 40%. Proper classification saves even more. This guide shows you exactly where those opportunities exist, state by state.
Understanding the full scope of coverage options is essential before comparing costs. Learn more about carpenter insurance to ensure you’re getting comprehensive protection.
Carpentry contractors performing mixed construction work should understand related classification impacts. Finish work and cabinetry may qualify for lower-rated flooring contractor insurance classifications. Structural framing connects to general contractor insurance pricing structures. Custom millwork might invoke drywall contractor coverage considerations with separate classifications.
These benchmarks come from ContractorNerd’s analysis of carpentry insurance quotes. See methodology
General Liability Premium Ranges:
National Average
0.5% to 3.1% of annual revenue
Favorable Markets
1.3% to 2.5% of annual revenue
Potential Savings
35% to 40% of current GL premium possible when moving from average to favorable market rates
Workers’ Compensation Rates
Class 5437
Cabinet/Trim Work
$2.50 to $11.75 per $100 payroll
Class 5645
Residential Framing
$3.51 to $43.42 per $100 payroll
Six Major Cost Drivers
Classification Codes
GL codes 91340-91343 and WC codes 5437/5645 set your base rates; a framing misclassification can cost 300% more than cabinet work
Years in Business
Primarily affects GL rates; carpenters with 10+ years typically pay less than those under 5 years
Subcontractor Usage
Impacts both GL (uninsured sub exposure) and WC (payroll audits)
Business Size
GL scales with revenue; WC scales with payroll. High-efficiency operations benefit from better ratios
Claims History
GL claims affect rates for 3-5 years; WC claims impact your experience modification factor
Geographic Location
Creates 1,600% WC variation between cabinet work in Oregon and framing in Georgia; GL varies by litigation environment and carrier competitionO
Carpenter General Liability Insurance Rates
Residential Carpentry (GL Code 91340)
Most carpenters perform framing, finish work, and general woodworking on residential projects. This classification covers single-family homes, multi-family dwellings up to three stories, and light remodeling, with rates varying based on project type.
Revenue Level
National Average
Favorable Rate
Potential Savings
High % of Revenue
$150,000
$3,580
$2,150
40%
1.6% to 3.1%
$500,000
$9,710
$6,315
35%
1.3% to 2.5%
$1,000,000
$21,040
$13,200
37%
1.4% to 2.7%
*Potential savings represent the possible reduction when moving from average to favorable market rates
GL Risk Advantages
for Residential Work
Predictable environments in single-family homes present consistent hazards
Direct homeowner relationships enable clear communication
Limited public exposure with fewer non-workers on job sites
Lower severity claims compared to commercial projects
GL Risk Challenges
for Residential Work
Property damage from accidental cuts to existing structures
Completed operations claims from defective installations discovered later
Tool theft from job sites and vehicles
Water damage claims from improperly sealed openings
GL Risk Advantages
for Commercial Work
Controlled jobsite access reduces public exposure
General contractor oversight of safety protocols
Clear project specifications minimize scope disputes
Established safety practices on larger projects
GL Risk Challenges
for Commercial Work
Heights exposure from multi-story framing increases fall severity
Business interruption claims from power failures
Multi-trade coordination complications
Contractual liability from indemnification clauses
GL Risk Challenges
for Residential Work
Water damage claims from fixture failures
Mold allegations from undetected leaks
Limited public exposure during off-hours work
Lower average claim severity than new construction
for Commercial Work
for Residential Work
Controlled jobsite access reduces public exposure
General contractor oversight of safety protocols
Clear project specifications minimize scope disputes
Newer building materials reduce corrosion claims
Workers’ Compensation Note: Carpenters typically classify under 5437 (cabinet/trim) or 5645 (residential framing) with rates varying dramatically by state from $2.50 to $43.42 per $100 payroll. Those performing mixed finish and framing work may have split classifications.
Carpenter Insurance Cost by State
50-State Interactive Heat Maps – General Liability & Workers Comp Analysis
Most carpenters operate across both residential service and commercial construction markets. The data below reflects a typical blend of these operations, with rates varying based on the specific mix of work performed.
Carpenter Insurance Cost Metrics by State
Explore insurance costs and savings opportunities across the United States
Show State-by-State Data
| State | GL Premium Range | GL Savings % | GL Competitiveness | WC Rate (Class 5437) | WC Rate (Class 5645) |
|---|---|---|---|---|---|
| Alaska | 0.80% - 1.60% | 22.60% | 0 | $6.16 | $9.78 |
| Alabama | 1.20% - 2.30% | 32.30% | 90 | $6.14 | $14.07 |
| Arkansas | 1.30% - 2.70% | 23.60% | 30 | $3.26 | $6.33 |
| Arizona | 0.90% - 2.10% | 50.60% | 30 | $4.05 | $10.17 |
| California | 1.60% - 3.00% | 18.20% | 10 | $5.62 | $8.46 |
| Colorado | 1.30% - 2.90% | 36.00% | 20 | $4.74 | $7.40 |
| Connecticut | 1.70% - 2.70% | 24.00% | 30 | $7.86 | $17.17 |
| Delaware | 1.20% - 2.60% | 36.40% | 10 | $5.00 | $9.06 |
| Florida | 1.30% - 2.90% | 43.50% | 80 | $6.23 | $12.61 |
| Georgia | 1.00% - 1.90% | 35.50% | 90 | $8.98 | $43.42 |
| Hawaii | 0.90% - 1.60% | 34.30% | 0 | $6.03 | $10.60 |
| Iowa | 0.60% - 1.60% | 40.60% | 90 | $5.71 | $9.65 |
| Idaho | 1.00% - 1.90% | 35.00% | 30 | $6.58 | $12.93 |
| Illinois | 1.40% - 3.10% | 37.30% | 70 | $9.75 | $19.23 |
| Indiana | 1.40% - 2.70% | 33.30% | 30 | $2.83 | $5.56 |
| Kansas | 1.10% - 1.80% | 27.80% | 30 | $4.55 | $10.53 |
| Kentucky | 0.70% - 2.10% | 58.60% | 20 | $3.87 | $9.81 |
| Louisiana | 3.10% - 6.50% | 43.20% | 10 | $9.60 | $17.76 |
| Massachusetts | 1.10% - 2.10% | 32.20% | 30 | $4.19 | $6.93 |
| Maryland | 0.70% - 1.60% | 45.50% | 90 | $5.50 | $7.23 |
| Maine | 0.80% - 1.70% | 42.30% | 30 | $6.61 | $10.58 |
| Michigan | 1.10% - 1.90% | 23.10% | 30 | $5.66 | $10.27 |
| Minnesota | 1.30% - 2.30% | 19.50% | 30 | $11.75 | $11.44 |
| Missouri | 0.70% - 1.80% | 53.30% | 30 | $5.96 | $12.48 |
| Mississippi | 1.60% - 2.60% | 24.30% | 30 | $6.14 | $9.19 |
| Montana | 1.30% - 2.40% | 36.90% | 30 | $6.91 | $9.85 |
| North Carolina | 0.50% - 1.50% | 56.50% | 80 | $5.48 | $16.73 |
| North Dakota | 1.20% - 1.90% | 22.10% | 30 | $3.73 | $3.51 |
| Nebraska | 1.20% - 1.70% | 13.00% | 70 | $4.91 | $9.15 |
| New Hampshire | 1.10% - 2.20% | 37.60% | 30 | $6.79 | $9.54 |
| New Jersey | 2.50% - 3.30% | 14.20% | 80 | $11.44 | $17.09 |
| New Mexico | 1.50% - 2.80% | 30.50% | 30 | $5.93 | $12.78 |
| Nevada | 1.70% - 3.00% | 25.80% | 20 | $4.80 | $7.89 |
| New York | 2.90% - 3.70% | 14.40% | 0 | $9.50 | $11.47 |
| Ohio | 1.00% - 1.70% | 27.50% | 80 | $3.32 | $4.59 |
| Oklahoma | 1.30% - 2.10% | 13.30% | 30 | $6.37 | $13.80 |
| Oregon | 1.00% - 2.90% | 50.90% | 20 | $2.50 | $6.70 |
| Pennsylvania | 1.90% - 2.70% | 15.80% | 70 | $7.06 | $9.50 |
| Rhode Island | 2.10% - 2.80% | 11.10% | 20 | $8.14 | $9.03 |
| South Carolina | 1.20% - 3.70% | 59.60% | 90 | $8.26 | $21.48 |
| South Dakota | 1.80% - 2.80% | 11.00% | 30 | $5.71 | $10.29 |
| Tennessee | 0.50% - 1.50% | 58.10% | 100 | $3.93 | $12.84 |
| Texas | 1.00% - 2.70% | 44.30% | 100 | $3.55 | $4.39 |
| Utah | 1.30% - 2.10% | 22.20% | 80 | $4.39 | $9.90 |
| Virginia | 0.60% - 1.00% | 30.00% | 80 | $5.46 | $9.73 |
| Vermont | 0.80% - 1.70% | 41.90% | 10 | $7.55 | $11.50 |
| Washington | 1.40% - 2.60% | 31.00% | 10 | $4.67 | $8.20 |
| Wisconsin | 1.60% - 2.10% | 14.00% | 20 | $10.03 | $13.07 |
| West Virginia | 1.30% - 3.10% | 15.60% | 20 | $2.74 | $5.72 |
| Wyoming | 1.00% - 1.70% | 31.10% | 30 | $3.48 | $4.31 |
The four heat maps above provide instant visual insight into carpenter insurance costs across all 50 states:
1. GL Premium Ranges – Visualize how general liability costs as a percentage of revenue vary nationwide, from as low as 0.5% in competitive markets to over 3.1% in high-cost states. Darker shades indicate higher premium ranges, helping you benchmark your current costs against regional averages.
2. GL Savings Opportunities – Discover potential premium reductions available through strategic shopping, ranging from 11% to over 59.6% depending on your state. This map reveals where shopping efforts yield the greatest returns.
3. Carrier Competition Levels – Unchanged
4. WC Rates per $100 Payroll – Compare workers’ compensation costs for carpenter classifications across all states. Code 5437 (cabinet/trim) ranges from Oregon’s nation-leading $2.50 to Minnesota’s $11.75. Code 5645 (residential framing) swings even wider, from North Dakota’s $3.51 to Georgia’s staggering $43.42. This dramatic variation significantly impacts total labor costs and competitive positioning.
What Does Carpenters Liability Insurance Cover?
Understanding GL Limit Structures
General liability limits significantly impact both premium costs and protection adequacy. Most carpentry contractors choose between three standard limit configurations:
$500K
Per Occurrence
$1M Limits
Aggregate
Suitable for smaller residential repair and finish work
Typical premium impact: Base rate
May not meet commercial contract requirements
$1M
Per Occurrence
$2M Limits
Aggregate
Industry standard for most carpentry contractors
Typical premium impact: No increase from base rate
Meets most residential and light commercial requirements
$2M
Per Occurrence
$4M Limits
Aggregate
Required for large commercial projects and municipal work
Typical premium impact: Moderate to significant increase from base rate
Often achieved through primary plus umbrella coverage
Deductible Strategies
Deductible selection provides premium flexibility while requiring careful cash flow consideration:
$0 Deductible
Maximum insurer responsibility from first dollar
Appropriate for new businesses with limited reserves
Premium impact: Base rate
$2,000 Deductible
Eliminates nuisance claims while preserving major loss protection
Provides minor to modest premium reduction
Requires maintaining operating reserves
Specialized Carpenter Endorsements
Faulty Workmanship Coverage
Available as a GL endorsement with sublimits, this coverage addresses allegations of improper construction, structural defects, or installation errors. Critical for carpenters performing framing, load-bearing work, or custom finish carpentry beyond basic repairs.
Tools & Equipment Coverage
While often available as a GL endorsement for hand tools, contractors with significant equipment investments should consider separate inland marine policies. Carpenters carrying table saws, miter saws, nail guns, and specialized finishing equipment typically need substantial tool coverage.
How to Lower Your Carpenter Insurance Cost
Strategic Shopping Timeline
General Liability Renewal Approach
Begin shopping 75-90 days before renewal to allow proper underwriting and negotiation. Submit applications to 5-7 carriers simultaneously, emphasizing safety programs and project documentation. Avoid last-minute shopping which limits options and prevents premium financing arrangement if needed.
Workers’ Compensation Timing
Start WC shopping 60 days prior to renewal, particularly when seeking alternative rating factors or retro programs. With Code 5437 and 5645 rates varying up to 1,600% by state and classification, carriers need time to properly evaluate your operations. Coordinate WC renewal with GL when possible to maximize account credits.
Workers’ Compensation Optimization Strategies
Classification Code Management
Proper employee classification can generate substantial savings. A framing carpenter with $200,000 payroll in Georgia at $43.42 per $100 pays $86,840 annually. The same payroll for cabinet work in Oregon at $2.50 per $100 costs only $5,000. Document time allocation through daily work logs and separate payroll records by work type and project classification.
Payroll Segregation Tactics
Separate clerical employees from field classification for significant savings. A $40,000 clerical salary saves thousands when properly classified versus Code 5645 field rates. Maintain detailed records showing physical separation from carpentry operations. Estimators and project managers who never perform field work may qualify for lower-rated codes.
Experience Modification Management
Focus on claims under $10,000 which disproportionately impact mod calculations. Implement return-to-work programs reducing lost time claims. Consider deductible programs to eliminate frequency-driven mod increases. A 0.80 mod versus 1.20 mod saves 33% on manual premium.
Premium Audit Preparation
Organize records by classification code before audit. Exclude overtime premium from payroll calculations. Document subcontractor certificates of insurance. Proper audit preparation prevents unexpected additional premiums and supports classification arguments.
General Liability Cost Reduction
General Liability Renewal Approach
Formalized safety programs with weekly toolbox talks, documented training, and written procedures support premium credits. Focus on fall protection, power tool safety, and proper scaffolding procedures given carpentry-specific exposures. OSHA 10/30 certifications and formal apprenticeship programs demonstrate sophistication carriers reward.
Subcontractor Management
Require certificates showing appropriate GL limits from all subs. Implement written agreements transferring liability. Track insurance compliance through dedicated software. Uninsured subcontractor exposure can significantly increase GL premiums.
Claims Management
Report claims immediately regardless of perceived merit. Investigate and photograph all incidents thoroughly. Never admit liability or promise payments. Maintain 5-year claims history documentation for underwriting credits.
Contract Review Protocols
Avoid blanket hold harmless agreements accepting others’ negligence. Limit liquidated damages to reasonable amounts. Require mutual waiver of subrogation on larger projects. Poor contracts create uninsurable exposures affecting renewals.
Methodology
Data Source
These insurance cost benchmarks come from ContractorNerd’s proprietary analysis of carpentry contractor insurance quotes across all 50 states, representing thousands of pricing data points. As a licensed insurance agency, we have direct access to actual carrier pricing from A-rated insurers.
What the Numbers Represent
- General liability premiums: Actual market rates shown as a percentage of revenue, reflecting low-end and high-end pricing
- Workers’ compensation rates: Current manual rates for NCCI classifications 5437 (interior trim/cabinet) and 5645 (framing), before experience modifications or schedule credits
- Revenue tiers: $150K, $500K and $1M annual revenue
- Savings calculations: Difference between national average and favorable market rates
Assumptions
- Standard coverage forms ($1M/$2M limits)
- Clean claims history (no claims in past 3 years)
- No significant endorsement modifications
- Standard carpentry operations
Limitations
These rates are for informational and comparative purposes only. Your actual premium will depend on your specific business characteristics, claims history, location, and carrier underwriting. Get a personalized quote for accurate pricing.