For carpenters and carpentry contractors in North Dakota, having the right insurance coverage at an affordable price is crucial for protecting your business. This overview explores the key policies North Dakota carpenters need, factors impacting costs, and illustrative premium ranges based on your firm’s size and years in business.

Proper insurance aids compliance, instills client trust, cushions against risks inherent in carpentry projects, and supports business growth. North Dakota carpenters who educate themselves on coverage options and cost considerations can secure optimal protection at competitive rates. Partnering with an experienced carpentry insurance advisor simplifies the process.

For carpenters in North Dakota, having the appropriate carpenter insurance is crucial. 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 North Dakota

Insurance premiums for North Dakota carpenters depend on several important criteria:

Years in Business – Newer contractors generally have higher rates. 5+ years experience often qualifies for discounts. Long-standing firms are perceived as lower risk.

Revenue – More revenue means increased risk exposure. The more jobs you take on, the greater the chances of claims occurring. Higher revenue firms pay more in premiums to match their expanded liability and address broader exposure.

Number of Employees – More employees raises risks, especially for workers’ compensation. Additional staff leads to higher premiums, as each worker must be covered. A 1-person operation has significantly lower workers’ comp costs than a 10-person crew.

Claims History – Frequent past claims push premiums upward. Too many losses make insurers perceive you as high risk. A clean record typically translates to savings. Going years without a claim demonstrates your focus on safety and risk mitigation.

Services Offered – Specialized or hazardous work (like large framing jobs) have distinct risks affecting premiums. Simple trim carpentry may qualify for lower rates than framing or restoration work involving more heavy equipment. Each service carries unique considerations.

Location – Urban carpenters may pay more than those in rural areas due to elevated property values. Higher home values and living expenses in metropolitan areas result in higher claim payouts, driving up premiums. Population density also affects pricing.

Client Type – Primarily serving commercial clients or homeowners influences underwriting. Commercial projects often have higher dollar values at stake. Homeowners may be more prone to claims around damage to personal property.

Policy Limits – Higher liability limits or insured asset values increase potential payouts for insurers, raising premiums. Lower limits reduce the maximum exposure so reduce costs, but may leave you underinsured.

Safety Record – Documented safety protocols like protective gear mandates, equipment maintenance logs, job site audits, and training programs may earn discounts by demonstrating risk mitigation. Sloppy safety standards often increase rates.

Carrier – Each insurance company assesses risk differently, leading to pricing variations. Getting quotes from multiple carriers ensures you find an affordable fit. Specialized brokers have access to more niche carriers.

Deductibles – Choosing higher deductibles reduces premiums but increases out-of-pocket costs if a claim is filed. Consider your risk tolerance and claim history when selecting deductibles.

Overview of Cost Illustration for Carpentry Businesses

Below we show typical premium ranges for small, medium and large North Dakota carpentry firms to illustrate how insurance costs scale. Remember each business is unique, so use these numbers as a reference point. Consulting an advisor ensures tailored coverage at reasonable rates for your exact operation.

Small Carpentry Business ($150K Revenue, 1 Owner, 1 Employee)

For a typical small carpentry contractor in North Dakota with $150K in annual revenue, 1 owner, and 1 additional employee, here are illustrative premiums:

General Liability

Typical Premium: $2,900

Low End: $2,000

High End: $4,700

General liability protects against third party bodily injury and property damage claims. It covers your legal defense costs and any settlements you become obligated to pay out. For a business this size, $1 million per occurrence and $2 million aggregate limits are recommended. Higher revenue businesses may need increased limits.

Workers’ Compensation

Typical Premium: $1,900

Low End: $1,500

High End: $3,400

Workers’ compensation insurance is mandatory for any business with employees. It covers workplace injuries and illnesses. Rates vary based on risk classification codes and past claims. Payroll size directly impacts premiums.


Not required in North Dakota. Clients may request bonds which typically cost 1%-3% of the bond amount.

Bonds act as a guarantee you’ll complete contracted work properly. They cover repairs or corrections if issues arise. Bonds showcase your commitment to quality work and client satisfaction.

Medium Carpentry Business ($500K Revenue, 1 Owner, 3 Employees)

A typical medium-sized carpentry business in North Dakota with around $500K in annual revenue, 1 owner, and 3 employees may expect the following premium ranges:

General Liability

Typical Premium: $8,600

Low End: $6,700

High End: $11,400

At this revenue size, increased liability limits are recommended. $2 million per occurrence and $4 million aggregate is typical. Products-completed operations coverage should also be incorporated to cover past work.

Workers’ Compensation

Typical Premium: $5,700

Low End: $4,300

High End: $9,500

With a larger team, payroll costs also climb, increasing workers’ compensation premiums. Ensure all employees are properly classified by risk level.


Not required in North Dakota. Clients may request bonds which typically cost 1%-3% of the bond amount.

Some general contractors mandate subcontractors carry a minimum bond amount. Being bonded allows bidding on more projects.

Large Carpentry Business ($1M Revenue, 1 Owner, 5 Employees)

For a larger carpentry contractor in North Dakota with approximately $1M in yearly revenue, 1 owner, and 5 employees, premiums often fall within these ranges:

General Liability

Typical Premium: $18,600

Low End: $12,200

High End: $26,900

At this size, even higher liability limits like $5 million per occurrence and aggregate should be considered, along with excess liability (umbrella) coverage. Completed operations coverage is essential.

Workers’ Compensation

Typical Premium: $9,600

Low End: $6,700

High End: $14,900

Payroll costs continue climbing with more employees, driving workers’ compensation premiums higher. Carefully auditing payroll against risk exposure is important to control costs.


Not required in North Dakota. Clients may request bonds which typically cost 1%-3% of the bond amount.

Larger general contractors commonly mandate subcontractors carry a minimum $200,000 to $500,000 bond. Verify requirements before bidding jobs.

Overview of Additional Insurance Coverages

Beyond the main policies above, here are added coverages North Dakota carpenters may need and typical premiums:

Commercial Auto Insurance

Covers vehicles used for business needs. Typical premiums range from $1,000 to $4,000 annually per vehicle depending on factors like vehicle type, driving records, and selected coverage limits and deductibles.

Inland Marine (Tools & Equipment)

Insures tools and machinery when transporting and off-site. Typical premiums range from $500 to $2,000+ annually depending on total value of equipment and selected coverage limits and deductibles. Can be bundled with general liability.

Commercial Property

For carpenters with workshops, lumber storage, offices or other properties, typical premiums range from $1,000 to $8,000 annually depending on factors like property value, location, deductible, and extent of perils covered. Can bundle with liability.

Employment Practices Liability

Protects against employee lawsuits alleging discrimination, harassment, wrongful termination, etc. Typical yearly premiums range from $2,000 to $7,000+ depending on team size and revenue. Essential once hiring staff.

Cyber Liability

Covers costs from data breaches and hacking incidents. Typical premiums range from $500 to $3,000 annually depending on revenue and how much customer data is collected and stored digitally.

Commercial Umbrella

Provides extra liability coverage above other policies’ limits. Typical premiums range from $1,000 to $4,000+ annually for $1M to $2M in additional coverage. Limits increase as revenue and risk exposure grows.

Getting Multiple Quotes And Securing the Right Insurance

The premium ranges above illustrate typical costs but your exact business will be unique. Rates can vary significantly between insurers. Working with an experienced carpentry insurance broker who can access multiple specialized markets helps secure tailored coverage at competitive pricing for your firm. They simplify the process of obtaining multiple quotes for comparison.

Leverage their expertise to get the right protection at the best value. They understand risk classifications, rules, and regulations in your region and can match you with top admitted and non-admitted carriers. Acting as your advocate, they negotiate optimal terms and pricing on your behalf.

Securing Coverage Through a Carpentry Insurance Specialist

Partnering with a carpentry insurance specialist who deeply understands the industry’s unique risks and coverage needs is highly recommended over a standard agent. Specialist brokers possess insider knowledge of the exposures carpenters face, leading to better tailored recommendations.

They work exclusively with carpentry risks versus juggling many unrelated industries. This enables them to cultivate relationships with niche carriers that cater specifically to carpenters. Mainstream insurers often don’t fully accommodate carpentry’s needs.

Specialists have direct access to more carrier options through their carpentry-focused business model. This allows securing coverage at attractive rates from markets hungry for carpentry risks. Casting a wider carrier net generates more choices to find an ideal match.

Their expertise also helps structure comprehensive protection and optimally integrate the array of coverages carpenters need as operations scale. Key knowledge needed to navigate insurance regulations and requirements for government contracts can determine success bidding public sector work.


Adequate insurance tailored for carpenters is essential for all North Dakota woodworking contractors. Educate yourself on typical policies needed, cost ranges, and factors impacting your premiums. Then partner with a skilled carpentry insurance advisor to secure optimal coverage for your business at reasonable rates. This protects your company, assets, people, and reputation from the risks inherent in carpentry work.