For carpenters and carpentry contractors in Montana, having proper insurance is crucial to protect your business from the risks inherent in woodworking and construction projects. Even routine carpentry jobs can lead to accidents, injuries, property damage and lawsuits if you are uninsured.

This comprehensive guide provides an in-depth overview of typical insurance costs for carpenters in Montana based on your business size and other key factors. We examine policy premium ranges for small, medium and large carpentry contractors in Montana for essential coverages like general liability, workers compensation and bonds.

Additionally, we explore other common policies Montana carpenters need as they scale up like commercial auto, inland marine, employment practices liability and more. Our goal is to help carpenters across Montana understand average insurance rates and make informed decisions when buying tailored policies.

Montana carpenters must have the appropriate carpenter business insurance to operate legally in the state. This typically includes general liability coverage for carpenters to safeguard against third-party claims and workers’ compensation insurance for carpenters to cover employee injuries sustained while working.

Key Factors Influencing Insurance Costs for Carpenters in Montana

Insurance premiums for Montana carpenters depend on several aspects:

Location – Insurance regulations and risk levels differ across states. More litigious states generally have higher premiums. Montana’s legal environment is less prone to lawsuits than other regions, keeping rates lower. Urban areas also tend to have higher premiums than rural parts of Montana due to more competition and higher cost of living.

Business Size – Both total revenues and number of employees impact costs. More employees means greater exposure for workers compensation claims. Higher revenue results in the need for higher liability limits to adequately cover potential losses. More employees and revenue mean greater overall risk.

Services Offered – The type of carpentry services you provide affects premiums. Businesses doing more hazardous work like framing, demolition and restoration carry greater inherent risk than those focused on finish carpentry. Your specialties dictate the types of accidents and claims that could happen, impacting prices.

Experience – The number of years you’ve been in business often correlates to lower premiums because longevity demonstrates capable risk management and avoiding frequent claims. New and inexperienced carpenters pay higher initial insurance rates.

Claims History – Past claims drive premiums upward. Too many claims, especially large ones, tell insurers you operate with high risk. A clean history with few if any claims generally results in significantly lower insurance prices.

Coverage Limits – Higher liability limits cost more in premiums but provide greater protection. Finding the optimal limits to properly cover your risk reduces unnecessary expenses. However, skimping on limits to lower premiums can be penny wise and pound foolish if a large claim occurs.

Carrier – Each insurance company uses proprietary formulas to price policies based on the above factors. Getting quotes from multiple carriers ensures you find cost-effective pricing tailored to your particular operation.

Overview of Cost Illustration for Montana Carpentry Businesses

Below we illustrate typical annual premium ranges for key coverages based on your carpentry business’s size in Montana. Remember each operation is unique, so utilize this as a helpful reference point to compare with insurance quotes you receive.

Aim to secure premiums near the low end ranges by partnering with an agent who accesses Montana’s top carriers and tailors coverage to your precise needs. Our cost examples assume a business working predominantly with homeowners on residential projects with 5+ years of experience and no recent claims.

Small Carpentry Business Insurance Costs


  • $150K Annual Revenue
  • 1 Owner
  • 1 Employee

General Liability

  • Typical Premium: $3,600
  • Low End: $1,900
  • High End: $4,900

Workers’ Compensation

  • Typical Premium: $3,700
  • Low End: $3,000
  • High End: $6,500

For small carpentry businesses in Montana, general liability premiums often range from $1,900 – $4,900 based on specific risk characteristics and carrier pricing. Workers compensation typically falls between $3,000 – $6,500 depending on payroll and class codes.


  • Not required in Montana

Montana does not have a statewide bond mandate for carpenters. However, some local municipalities may have bonding requirements for carpentry contractors. Verify rules for your areas of operation.

Medium Carpentry Business Insurance Costs


  • $500K Annual Revenue
  • 1 Owner
  • 3 Employees

General Liability

  • Typical Premium: $10,300
  • Low End: $6,500
  • High End: $13,600

Workers’ Compensation

  • Typical Premium: $11,100
  • Low End: $8,300
  • High End: $18,400

For medium-sized carpentry businesses with $500K in revenue and 3 employees, general liability premiums typically fall between $6,500 – $13,600 depending on risk factors. Workers compensation is commonly $8,300 – $18,400 based on payroll and loss history.


  • Not required in Montana

Verifying local bonding rules remains important as your carpentry business grows. Some Montana municipalities have bond requirements while the state level does not.

Large Carpentry Business Insurance Costs


  • $1M Annual Revenue
  • 1 Owner
  • 5 Employees

General Liability

  • Typical Premium: $22,000
  • Low End: $14,500
  • High End: $31,100

Workers’ Compensation

  • Typical Premium: $18,500
  • Low End: $13,000
  • High End: $28,700

For larger contractors with $1M revenue and 5 employees, general liability premiums often range from $14,500 – $31,100 based on risk characteristics. Workers compensation typically runs $13,000 – $28,700 depending on payroll and loss runs.


  • Not required in Montana

As your carpentry business grows to enterprise scale, verifying local bonding rules remains prudent. Some municipalities mandate bonds even though Montana does not require them statewide.

Overview of Additional Insurance Coverages

As your carpentry business evolves, here are some other common policies to consider and typical annual premiums:

Commercial Auto Insurance

  • $1,000 – $2,000 per vehicle

Pickup trucks, cargo vans, trailers and other vehicles used to transport tools, equipment and materials to job sites need commercial auto insurance. It covers collision and liability claims. Rates vary based on factors like vehicle type, driver history, and coverage limits.

Inland Marine (Tools & Equipment)

  • $750 – $1,500 annually

Also called contractors equipment coverage, this protects your tools when transporting them to job sites and when working off-site. Premiums depend on total value insured, deductible, and geographic risk factors.

Business Property Insurance

  • $1,200 – $4,000 annually

This covers carpentry business locations like workshops, lumber yards, offices and showrooms from common risks including burglary, fire, storms and vandalism. Rates depend on factors like location, building construction, and total insured value.

Employment Practices Liability

  • $2,000 – $5,000 annually

Protects against employee lawsuits alleging discrimination, wrongful termination, sexual harassment or other claims. Rates depend on team size, revenue, risk management protocols and claims history.

Cyber Liability

  • $500 – $1,500 annually

Covers costs if customer or business data is compromised by hacking, viruses or other digital threats. Rates depend on revenue, data storage practices, and security protocols.

Commercial Umbrella

  • $1,500 – $4,000 for $1M in additional coverage

Provides extra liability limits above general liability, commercial auto, and employers liability. Rates depend on underlying policy limits, revenue, services, claims history and more.

Getting Multiple Quotes And Securing the Right Insurance

It’s wise to work with a specialist who focuses on contractor policies from top commercial insurers providing coverage in Montana. They simplify getting multiple quotes while ensuring your carpentry business gets tailored, cost-effective insurance.

Leverage their expertise in navigating insurers, interpreting subtle differences in coverage, and structuring an optimal insurance portfolio. They understand risk exposures for Montana woodworking contractors.

Compare quotes to find policies competitively priced for your particular operation. The right agent minimizes guesswork and secures essential protection you need to operate with confidence.

Key Factors to Get the Best Insurance Rates

Here are some additional tips that can help carpentry businesses in Montana get optimal insurance rates:

  • Maintain rigorous safety protocols – Documented safety processes like equipment inspections, job site protection, worker training and more demonstrate your commitment to risk management. This helps secure lower premiums.

  • Formalize and update contracts – Well-structured contracts clarify project scope, change order processes, site access rules, liability limitations and other terms. They limit disputes leading to claims. Review contracts annually.

  • Join trade associations – Memberships provide access to group insurance programs only available to association members. These plans often have discounted pricing.

  • Review credits and debits on policies – Most carriers apply credits and debits to policies based on risk factors. Ensure these are accurate on your policies. Get credits applied properly.

  • Analyze loss runs annually – Review losses with your agent to identify patterns and opportunities to improve safety and avoid claim types happening repeatedly.

  • Increase deductibles cautiously – Higher deductibles lower premiums but increase out-of-pocket costs if a claim occurs. Balance risk tolerance with savings.


We hope this detailed overview provides helpful insight into typical insurance costs for carpenters in Montana based on business size, services, experience and other factors. Use it as a reference when buying new policies or reviewing existing coverage.

Be sure to collaborate with a specialist focused on contractor insurance needs in Montana. They match you with top insurers to ensure you get adequate, affordable protection tailored to your carpentry business.