Even Indiana Jones was once a carpenter! Well, this may not be entirely true: it was actually the actor Harrison Ford, who claimed this profession before he was discovered for the “Star Wars” franchise. The thrill and feeling of success from self-employment can be one of the most rewarding sensations in the world. The freedom to pick and choose who you work for, and display your crafting skills is incredibly rewarding. All this freedom can unfortunately result in a risky situation, as things that could go wrong on the jobsite may be deemed your fault. 

Carpentry Contractors Insurance will provide protection from massive financial damage, and the danger of sudden bankruptcy and other miseries. Many people who first get started as a handyman on weekends choose to forego insurance, due to the expense and research needed to select a feasible provider. This is one way to minimize loss and a valuable part of a strategy that can keep the owner in good standing. Many insurance policies are relevant to carpenters, as this is a very diverse profession. 

Does a Carpenter Need Insurance? 

During any day on the job, there are a variety of accidents that could change the course of your day drastically. A sizable claim against your business could leave a devastating financial effect that will pose dark clouds for your future livelihood. Having carpenter’s insurance is an affordable way to protect you from any potential issues. If multiple contractors are working on a job site, a “cross-injury” of sorts could occur. As soon as any injury takes place, a general liability policy will help with the coverage of these costs. 

What are the Different Types of Self-Employed Carpenters?

Having insurance as a carpenter is essential, regardless of the type of carpenter you identify as. Two prominent categories of self-employed carpenters that will determine which type of policy you can learn about from us here at the Alexander Insurance Agency of St Charles. 

Sole Proprietor: A sole proprietor operates without the assistance of any other employees. The positive aspect of this type of business is that you are only responsible for providing coverage for yourself. Designating yourself as a subcontractor still falls under the same category. A certain type of contract that you could sign for work will require similar insurance that a larger company would have to carry, and your agent will be able to determine which bundle or option works best.

Company: A company could be a corporation, LLC, or even a partnership. If you have employees on your payroll, your risk for claims could be higher, and you will be required to take out more insurance. It’s not just you and your company that need insurance, but your hard-working roster of employees as well. 

What Types of Insurance Does a Carpenter Need? 

• General Liability: This is the initial policy that any agent will recommend you obtain. It is the quintessential form of coverage that assists with injury claims or property claims after the job is done. It could be scaffolding falling on a car, or dropping a power saw on a bystander. Things such as spills, slips, and other encounters can incite a major lawsuit even if there was no ill intent negating the event. 
• Professional Liability: professional liability insurance is a crucial element to think about if you are advising or providing any professional consultant work. If your advice can somehow cause a client to experience financial hardship or a completion delay, you could find yourself dealing with a lawsuit. Even if your entity was not at all in the wrong, you will still benefit from the defense coverage the policy offers.
• Commercial Auto: This type of coverage is essential for your vehicles under Commercial Auto insurance, as most personal auto policies make it a point to exclude business operations. Commercial auto insurance will cover liability for anyone else driving and any damage incurred to your vehicle. Owning and operating a work vehicle can increase your productivity and profitability, but also poses a financial risk to your day-to-day operations. Regardless of whether auto insurance is required in your state, the business can still be liable for damages if a company vehicle is ever involved in an accident.
• Inland Marine: inland marine insurance is commonly used by contractors to protect their viable tools and equipment as they travel to complete work at different locations. It is a coverage that was designed to fill the gap once cargo was loaded off ships and distributed to traverse across the country. An inland marine policy for a carpenter would also cover property in transit, such as a food truck with prepping equipment inside. For thieves that are looking for a quick score, tools and equipment can provide a worthwhile reward for just a few minutes of risk. As commercial property insurance is adequate for the goods to stay on the site, inland marine insurance provides peace of mind for everything mobile.
• Workers Compensation: From the carpenter who has just hired a helping hand to a thriving entity with a dozen employees, workers compensation insurance is required in Missouri. The law regarding coverage states that businesses with more than five employees must carry this insurance, but in the construction industry just one extra employee is enough to warrant coverage. This will help if employees become hurt on the job, it is essential to have a good sense of employee morale and protect your company’s future livelihood.

“Custom Building” a Policy for your Carpentry Business

The amount of liability a carpentry business undergoes generally increases the further employees work from the ground. Any situation taking place more than three stories in height should be considered the entry point for getting serious about your options. As you are meeting with clients to discuss future endeavors, many of them will prefer to work with carpenters who are properly insured. They see a lack of coverage as a slight of professionalism and reliability, and it can be more challenging to acquire a new project.

Everyone here at the Alexander Insurance Agency of Saint Charles has experience with the various premiums available for carpenters and how they fit into your budget. We can assist you with keeping an eye on the deductibles associated with the policy you are considering, and finalizing a plan that works for you. As you pull away each morning prepared to bid on work and eagerly set up shop, don’t leave your livelihood to chance, and take on the future’s challenges with a trusted partner!