- Correctly classify your carpentry business.
The first recommendation we offer for lowering your insurance price is to ensure that your business is properly categorized. Because of the nature of carpentry, there are several carpentry class codes. Typing “carpentry” into just one of our insurance companies, for example, returns the following results:
- Contractors in Carpentry – Cabinet Construction and Installation
- Carpentry Contractors – Installation of Doors, Windows, or Garage Doors
- Carpentry Contractors – Only Finish and Trim Work
- Contractors in Carpentry – Framing
- Metal Ceiling or Wall Installation Carpentry Contractors
- NOC Carpentry Contractors
- Contractors in Carpentry – Shop Only
That’s simply the carpentry class codes. This excludes the other trade classes that include the manufacture and installation of wood items. In the near term, it may appear that misclassifying your firm or failing to include all classifications will be less expensive. Although it may be less expensive at the outset of the policy, being detected for misclassification might result in a pricey audit, coverage gaps, and the insurance provider losing faith in you.
- Reduce the possibility of a fire.
Having a suitable dust collection and fire suppression system to decrease the risk of fire is a wonderful method to receive better insurance rates on your structure and belongings. In our experience, the increased danger of fire caused by sawdust is the most significant problem.
- Keep an employee safety handbook on hand.
Working with saws, blades, scissor lifts, and ladders necessitates the use of a safety handbook that covers the necessary safety equipment and procedures to keep you and your staff safe on the job. If anything, this shows your underwriter that you have a solid safety culture and are an excellent firm to insure. Send all of your safety materials to your insurance broker so that the insurance company can see them.
Why is insurance required for carpenters?
Carpentry is a dangerous business due to the use of nail guns, saws, and other instruments of the craft. With carpenter insurance, you can protect your small company from injuries, litigation, and theft.
What kind of company insurance do carpenters require?
- Insurance against general liability
General liability insurance protects against typical business risks such as customer harm, property damage, and advertising injury. It shields your small business from the high expenses of lawsuits and assists you in obtaining leases and contracts.
- Insurance for workers’ compensation
Workers’ compensation insurance pays for medical expenses and lost earnings resulting from work-related accidents and illnesses. For firms with employees, practically every state requires this policy.
- Insurance for commercial vehicles
If a commercial vehicle is involved in an accident, commercial car insurance pays for legal fees, medical expenditures, and property damage.
- Insurance for contractor’s tools and equipment
This coverage assists in the repair or replacement of a contractor’s tools and equipment if they are lost, stolen, or destroyed. Typically, the objects must be less than five years old.
- Insurance for professional liability
Professional liability insurance, often known as errors and omissions insurance, protects small businesses from the costs of customer litigation resulting from subpar work.