Carpenters are very important professionals of our society, so it’s not surprising that insurance companies have set out to make them secure with insurance. In the process, they have developed several pointers that make carpenters insurance not just extremely viable but a definite go-to for carpenters. Let’s take a look at them:
#1: Carpenters insurance is tailor-made
Every project that a carpenter undertakes is different from the other and unique, and the client equally so. His expertise is sought after and his flexibility is praised, so to find a good enough cover shouldn’t be difficult. Besides, it can also be tailor-made so that a carpenter gets the best of public liability and professional indemnity in one policy. And, it’s quick and hassle-free.
#2: Who can claim carpenters insurance?
Several businesses and their employees can stand to gain from carpenter insurance, such as: builders, woodworkers, framing contractors, remodelers, deck builders, developers, handymen, renovators, housing contractors, construction companies and cabinet installers.
#3: The kind of carpentry increases the business risk
There are many kinds of carpentry, each with its own risk level. So, trim and finish carpenters would carry a lower risk than others because their work is to decorate the edges of wood pieces and they don’t have to bear any structural weight. So, carpenters should choose a policy that matches their niche area of work so that they don’t pay more than they should for insurance.
#4: Carpenters can claim public liability insurance
Though this type of insurance is common for all other professionals, yet it’s a big step for carpenters to have it as it is likely that one may be injured in the course of work or that their property could be damaged because of their client’s business. If a carpenter is injured while working or becomes seriously ill in the course of a project, he will be covered under this policy.
#5: Carpenters can expect full coverage under General Liability Insurance
Finish and trim carpenters stand to get full coverage if sued for damage to a client’s property, or for not meeting his expectations, or if he is injured at work. In such cases, General Liability Insurance will cover all his legal costs, such as third-party lawsuits and disputes with any other contractors. Often, these costs can go up to a maximum of $920.
#6: Niche carpentry areas call for niche insurance cover
Overall, there are three broad types of carpentry streams:
- Carpentry services groups: These carpenters repair and maintain interior and exterior wood parts, such as door and window frames, walls, ceilings and floors.
- Finish and trim carpenters: These niche carpenters give finishing touches to doors, roofs, walls, molding, cabinets, windows, fireplaces, siding and decking, thereby enhancing their functionality and appearance.
- Carpenters for interiors: These carpenters work on projects inside buildings, such as putting up doors, windows, cabinets, shelves, etc.
#7: Carpenters can claim the expense of car accidents
Under Commercial Auto Insurance, carpenters can protect their business from the steep costs of car accidents. This insurance covers these professionals who may meet with accidents or injury while visiting clients’ homes, making deliveries or working on a project. By taking this policy, carpenters stand to save about $2,000.
#8: Because carpenters’ safety is all, here’s an important insurance
It’s highly probable that while operating industrial machines or any other materials, a carpenter may be injured, thus affecting his livelihood. Though companies do offer safety training periodically, yet the risk of accidents occurring is high and therefore needs insurance. This kind of insurance is called Workers’ Compensation Insurance.
Through this insurance, carpentry companies can decrease some of the risks associated with their jobs by providing coverage to protect their business assets in case they are faced with an expensive and sudden lawsuit due to an injured employee or a victim of an accident. Workers’ Compensation Insurance can help provide the necessary amount of money to cover all legal and court costs, including thte possibility of a settlement.
This insurance acts as a safety net for employee carpenters and construction companies by covering all possible legal costs. In addition, they also cover the following:
- All medical expenses of an injured employee who is subject to on-the-job injuries or work-caused illnesses.
- Money that the carpenter employee would have earned if he was not involved in the accident.
- The employee’s legal fees for his work-related disability, injury or medical condition.
Employees are aware that on-the-job accidents can be the stepping stones to lawsuits, it helps to have a Workers’ Compensation policy that includes Employers’ Liability Insurance. If an injured employee files a case against his company, such a policy will help the company pay for all legal costs of defending it in court and preventing it from paying up the employee’s claim. Since legal fees are steep, a construction company could stand to face a big financial loss by the time the court realizes that the company isn’t responsible for the employee’s condition.
#9: Is it wise for carpenters to get an Umbrella Insurance?
In order to enhance their insurance for legal costs, carpentry business owners usually invest in Umbrella Insurance or Excess Liability Insurance. If a carpenter exhausts his coverage on his Workers’ Compensation, General Liability and Auto Insurance policies, his Umbrella Insurance policy can be used to pay a maximum of $1 million, apart from additional legal costs incurred for lawsuits. However, an Umbrella Insurance usually demands a yearly premium of $1,000.
#10: Does a carpenter have to invest in a license and permit bond?
Carpenters are required by law to apply for a contractor’s building permit or license, called a License and Permit Bond. This is necessary for their trade to serve as guarantees. The bond states that the carpenter in question will agree to obey all state laws pertaining to the construction industry. If the carpenter doesn’t get himself this license and permit bond, the insurance company will intervene to pay the government the bond amount. However, the typical cost of a license and permit bond costs about $100.