Carpenters and carpentry contractors – having the right insurance is essential to safeguard your business. General liability insurance is crucial in case your work accidentally leads to property damage or injuries to clients or others. Without proper coverage, a single lawsuit could permanently close your business.

We’ve created a guide tailored for you, outlining what’s included in a policy, average costs, and how to get insured. For more information on General Liability, please read our comprehensive guide on Liability Insurance for Contractors.

Moreover, we’ve examined 721 carpenter liability quotes from leading companies nationwide for carpentry businesses of various sizes. While your specific price and coverage may differ based on your unique risks, this overview offers a reliable benchmark to help you make informed decisions about coverage.

What is Carpenters Liability Insurance?

General liability insurance protects your carpentry business if you accidentally cause bodily injury or property damage to others. For example, if someone trips over your tools at a jobsite and gets hurt, or you accidentally damage a client’s floors, this insurance covers the medical bills, repairs, and legal costs if they sue you.

Without this insurance, just one accident could bankrupt your business from paying for injuries, repairs, and legal fees that can easily reach $100,000 or more. But with proper general liability coverage, your business can keep operating even after a costly claim.

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: Getting sued over an installed product that turns out defective.
  • Completed Work: Getting sued later on over issues from past completed jobs.

General liability policies cover the legal fees, settlements or judgments if you face these kinds of liability claims. It provides broad protection against the risks inherent to carpentry work. Carrying adequate coverage is essential to safeguard your business from devastating claim costs that could otherwise force you out of business.

What’s NOT Covered By General Liability Insurance?

General liability insurance has some exclusions you need to be aware of:

  • It doesn’t cover normal wear and tear or gradual damage over time.
  • It doesn’t cover damage from pre-existing issues before you started work.
  • It doesn’t cover damage to your own tools and equipment.
  • It doesn’t cover vehicle accidents (you need commercial auto insurance for that).
  • It doesn’t cover injuries to your own employees (workers’ comp covers that).
  • It doesn’t cover intentional harm or illegal acts you commit.
  • It doesn’t cover faulty workmanship issues with your completed work product.
  • It doesn’t cover professional negligence for giving faulty advice or designs.

Because of these exclusions, most carpenters need additional policies like workers’ comp, builders risk, and commercial auto insurance alongside their general liability. These policies work together to fully protect your business.

ContractorNerd’s Study: Cost of General Liability Insurance For Carpenters

We crunched the numbers with 721 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:

  • Sole Proprietor Carpenter ($150K Revenue) – $1,500 to $3,600
  • Medium Carpenter Contractor ($500K Revenue) – $4,000 to $9,700
  • Large Carpenter Contractor ($1M Revenue) – $8,200 to $21,000

For a sole proprietor carpenter grossing around $150K per year, a typical insurance premium may be around $3,000 annually, while a 3-person contractor doing $500K in revenue may pay $9,000.

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.

Average Carpenter General Liability Insurance Premiums

State$150K Revenue$500K Revenue$1M Revenue
Alabama$3,500$9,300$20,000
Alaska$2,400$5,300$10,600
Arizona$3,100$8,900$19,400
Arkansas$4,000$8,900$18,800
California$4,500$9,900$20,100
Colorado$4,300$11,400$23,900
Connecticut$4,100$12,100$26,000
Delaware$3,900$10,700$22,000
Florida$4,400$11,500$25,700
Georgia$2,800$7,600$16,300
Hawaii$2,400$6,700$13,500
Idaho$2,900$8,000$16,800
Illinois$4,700$12,600$26,900
Indiana$4,000$11,100$23,500
Iowa$2,400$6,400$13,300
Kansas$2,700$7,900$16,700
Kentucky$3,200$8,700$19,000
Louisiana$9,800$27,100$58,900
Maine$2,500$7,100$15,500
Maryland$2,400$6,600$13,800
Massachusetts$3,100$8,700$18,300
Michigan$2,800$7,800$16,400
Minnesota$3,400$8,700$17,800
Mississippi$3,900$11,500$24,400
Missouri$2,700$7,500$15,300
Montana$3,600$10,300$22,000
Nebraska$2,600$7,700$16,200
Nevada$4,500$12,800$27,300
New Hampshire$3,300$9,300$19,800
New Jersey$5,000$14,800$32,300
New Mexico$4,200$11,800$25,200
New York$5,600$16,700$36,400
North Carolina$2,300$6,200$13,500
North Dakota$2,900$8,600$18,600
Ohio$2,500$6,900$14,800
Oklahoma$3,200$7,500$15,800
Oregon$4,400$10,600$27,200
Pennsylvania$4,100$11,400$26,200
Rhode Island$4,200$12,600$26,800
South Carolina$5,600$15,100$33,100
South Dakota$4,200$10,900$26,600
Tennessee$2,300$6,200$12,700
Texas$4,100$8,800$18,900
Utah$3,100$9,000$19,300
Vermont$2,500$7,400$16,300
Virginia$1,500$4,000$8,200
Washington$3,900$10,000$22,400
West Virginia$4,600$7,700$21,600
Wisconsin$3,200$10,000$20,700
Wyoming$2,500$7,400$16,400

These figures should be used as a guide, and specific premiums can vary based on factors like location, type of carpentry services offered, and other unique characteristics of the business. It may be beneficial to consult with an insurance professional who specializes in the carpentry industry to get an accurate quote tailored to your particular situation.

Contractor Nerd’s Study: Potential Savings for Carpenters Liability

Because risk profiles vary so much between contractors based on services, equipment, materials, locations, revenues, and past claims, standard “one size fits all” policies often leave carpenters underinsured or overpaying. Policy coverage is key.

Working with an independent insurance agent familiar with the carpentry industry helps structure tailored coverage and cost-saving measures like:

  • Matching liability limits and deductibles to likely risk scenarios.
  • Considering completed operations coverage timeframes.
  • Meeting unique state/local insurance requirements.
  • Incorporating relevant supplementary coverages like tools insurance.
  • Tailoring policies or accessing group discounts.
  • Excluding secondary risks when possible to lower premiums.

With professional guidance, carpenters avoid overpaying for unnecessary protections while still covering their largest liability risks. The peace of mind and sheer financial protection make general liability insurance an essential safeguard for any prudent carpentry business owner.

To better illustrate the value of working with an independent agent who specializes in working with carpenters and carpentry businesses, we’ve compiled the data below representing quotes and potential savings from our sample of 721 quotes from leading carriers across the united states. The data below is meant to illustrate what favorable insurance premiums look like and their implied savings as a percentage saving over the typical premiums above.

Favorable Rates & Implied Savings on Carpenter General Liability Insurance Premiums

State$150K Revenue$500K Revenue$1M Revenue
Favorable RateImplied SavingsFavorable RateImplied SavingsFavorable RateImplied Savings
Alabama$1,80049%$6,30032%$11,80041%
Alaska$1,20050%$4,10061%$8,20023%
Arizona$1,40055%$4,40077%$9,40052%
Arkansas$2,00050%$6,80064%$12,60033%
California$2,50044%$8,10060%$16,30019%
Colorado$2,20049%$7,30069%$13,20045%
Connecticut$2,60037%$9,20065%$17,10034%
Delaware$2,00049%$6,80069%$12,40044%
Florida$2,40045%$6,50075%$14,30044%
Georgia$1,80036%$4,90070%$10,80034%
Hawaii$2,3004%$4,40067%$9,20032%
Idaho$1,60045%$5,20069%$9,60043%
Illinois$2,40049%$7,90071%$14,30047%
Indiana$2,20045%$7,40069%$13,50043%
Iowa$1,50038%$3,80071%$5,50059%
Kansas$1,60041%$5,70066%$10,70036%
Kentucky$1,30059%$3,60081%$6,80064%
Louisiana$5,00049%$15,40074%$34,10042%
Maine$1,30048%$4,10074%$8,80043%
Maryland$1,30046%$3,60074%$7,90043%
Massachusetts$1,80042%$5,90068%$10,90040%
Michigan$1,90032%$6,00063%$10,90034%
Minnesota$2,10038%$7,00061%$12,70029%
Mississippi$2,50036%$8,70064%$16,10034%
Missouri$2,00026%$3,50077%$7,00054%
Montana$1,90047%$6,50070%$14,50034%
Nebraska$2,10019%$6,70059%$12,30024%
Nevada$2,90036%$9,50065%$17,30037%
New Hampshire$1,80045%$5,80071%$10,60046%
New Jersey$4,20016%$12,70061%$29,10010%
New Mexico$2,50040%$8,20067%$15,00040%
New York$4,80014%$14,30061%$32,80010%
North Carolina$1,10052%$2,70080%$5,90056%
North Dakota$2,00031%$6,70064%$12,20034%
Ohio$1,60036%$5,00066%$10,50029%
Oklahoma$1,90041%$6,50059%$12,60020%
Oregon$1,60064%$5,20081%$11,00060%
Pennsylvania$2,80032%$9,60063%$21,10019%
Rhode Island$3,30021%$11,20058%$20,60023%
South Carolina$2,20061%$6,10082%$13,30060%
South Dakota$2,90031%$9,70064%$17,80033%
Tennessee$80065%$2,60080%$6,10052%
Texas$1,80056%$4,90074%$10,60044%
Utah$2,10032%$7,00064%$12,60035%
Vermont$1,50040%$4,30074%$8,40048%
Virginia$1,20020%$2,80066%$6,00027%
Washington$2,80028%$6,90069%$18,50017%
West Virginia$3,20030%$6,50070%$13,70037%
Wisconsin$2,50022%$8,60058%$15,50025%
Wyoming$1,50040%$5,10069%$11,10032%

Reducing Carpenter Liability Premiums

While insurance premiums seem expensive, they are small compared to the huge risks carpenters face daily without proper coverage. Having general liability insurance gives carpenters peace of mind, safeguarding their hard-earned money and business from potentially catastrophic claims or lawsuits. This allows even small carpentry companies to grow confidently despite the dangers of their work. To reduce insurance costs, carpenters should:

  • Implement rigorous jobsite safety protocols and training
  • Join trade associations for group insurance discounts
  • Earn carpentry safety certifications insurers prefer
  • Choose higher deductibles they can afford
  • Bundle policies together for multi-policy discounts
  • Use a limited, insured list of subcontractors
  • Ask about premium financing payment plans
  • Work with an agent specializing in carpentry insurance

Above all, making safety the top priority prevents accidents and lowers claims long-term, leading to lower premiums. Steps like ongoing training, thorough jobsite hazard assessments, proper fall protection, equipment maintenance, securing work areas, and good housekeeping are crucial.

To get the right general liability coverage tailored for your carpentry risks at competitive rates, use an independent insurance agent. They provide advantages like:

  • Comparing policy options across many specialized insurers
  • Customizing coverage for carpentry exposures
  • Explaining the policy in plain language
  • Offering guidance on premium-saving safety practices

An experienced independent agent is invaluable for carpenters to secure appropriate, affordable insurance.

Get Carpenter Liability Quotes and Insurance from ContractorNerd

Running a carpentry contracting business comes with risks. Make sure you have customized general liability coverage designed specifically for carpenters.

At ContractorNerd, our online tools simplify getting quotes from top providers. Just input key details about your woodworking services, locations, claims history and more. We’ll deliver tailored quotes for your review.

Our Platform Helps Carpenters:

  • Obtain general liability quotes tailored for carpentry contractors
  • Tailor limits to meet project requirements
  • Access guidance from our network of licensed advisors

Don’t waste time worrying about insurance. Connect with top providers in minutes for obligation-free quotes tailored to your needs.