As a carpenter in Rhode Island, protecting your business with proper insurance coverage is essential. This guide details key insurance requirements and costs based on our analysis of actual quotes from leading carriers, helping you make informed decisions about coverage.

Get an overview of carpentry business insurance to understand what’s commonly included.

General Liability Insurance for Rhode Island Carpenters

Based on analysis of quotes from leading carriers, here are typical liability insurance costs for Rhode Island carpenters:

Revenue SizeAverage Premium% of RevenueFavorable RatePotential Savings
$150K$4,2002.8%$3,30021%
$500K$12,6002.5%$11,20011%
$1M$26,8002.7%$20,60023%

Premiums assume:

  • Clean claims history (5+ years)
  • Standard $1M/$2M limits
  • 10% subcontractor costs
  • Common class codes: 91340, 91341, 91342

Worker’s Compensation Insurance for Rhode Island Carpenters

Workers’ compensation is mandatory for Rhode Island carpenters with employees. Key data points:

  • Average cost per $100K payroll: $8,590
  • Typical annual cost per employee: $22,834
  • Common class codes and rates per $100 of payroll:
  • 5645 (Residential carpentry): $8-12
  • 5437 (Interior finish): $6-10
  • 5403 (General carpentry): $10-14

Additional Business Insurance for Carpenters in Rhode Island

1. Tools & Equipment Coverage

  • Annual premiums range from $200-$2,000
  • Policy limits typically between $5,000-$15,000+
  • Per-item limits usually capped at $5,000
  • Covers both owned and rented equipment
  • Protection extends to all job sites

2. Commercial Auto Insurance

  • Premiums range from $1,500-$3,050 per vehicle annually
  • Standard limits: 100K/300K/100K
  • Higher limits of $500K-$1M recommended for comprehensive protection
  • Covers business-owned vehicles and work-related accidents
  • Required for all vehicles used for business purposes

3. Contractor’s E&O Coverage

  • Annual premiums between $50-$500
  • Policy limits range from $10,000-$1M+
  • Protects against claims of faulty workmanship
  • Covers professional negligence claims
  • Includes legal defense costs and judgments

4. Commercial Property Insurance

  • Annual costs range from $1,000-$5,000
  • Protects workshops and lumber storage facilities
  • Coverage based on property value and location
  • Protection against fire, theft, and natural disasters
  • Includes business interruption coverage

5. Surety Bonds

  • May be required for certain projects or licenses
  • Bond amounts typically range from $5,000-$25,000
  • Premium costs 1-3% of total bond amount
  • Rates vary based on credit score and experience
  • Guarantees work quality and contract fulfillment

Get Rhode Island Carpenter Liability with ContractorNerd

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  • Analysis of 800+ carpenter quotes across states
  • Specialized agents understanding carpenter risks
  • Multiple carrier options for best rates
  • Streamlined application process
  • Ongoing policy management support
  • Claims advocacy when needed

Contact ContractorNerd today for competitive quotes matched to your carpentry business needs.