Insurance for Carpenters

Finish and Trim Carpenters typically perform interior work only, such as cabinet installation and interior trim. Other carpenters may perform exterior work only, or both. Exterior carpentry includes framing work, such as structural support for a new building or residence. Interior carpenters perform remodeling, repair, finishing or refinishing.

Interior carpentry normally consists of either rough or finish work. Rough work involves framing windows and doors, laying floor joists and subfloors, stairways and more. Finish carpentry work examples include: hanging doors, installing baseboards and molding around doors and windows, making or installing cabinets as well as shelving or other custom built-ins.

Recommended Insurance Programs for Carpenters

Minimum recommended coverage:

• General Liability Insurance (Contractors Liability)
• Inland Marine Insurance
• Commercial Auto (and Hired and Non-Owned)
• Workers Compensation Insurance

Other coverages to consider for Carpentry:
Commercial Building (if owned), Business Personal Property, Employee Dishonesty, Contractors’ Equipment and Tool Floater (Inland Marine), Umbrella Liability Coverage, Business Income with Extra Expense, Builders Risk, Goods in Transit and Installation Floater.

Common Risks and Needs Associated with Carpenters

General Liability Insurance
General liability exposures at a carpenter’s shop or office are generally limited due to the lack of public access to the carpenter’s premises. There should be company controls in place as fires from woodworking and/or lumber storage can affect neighboring businesses or homes. Outdoor storage may also create vandalism hazards.

Job-site operations for carpenters include the potential for injury to the public or to employees of other contractors, or damage to their property or completed work. Tools, power cords, building materials and scrap materials all pose trip hazards. The use of saws and other power or hand tools is hazardous to bystanders and other subcontractors on the job-site.

In enclosed buildings, build-up of dust and scraps represents a potentially catastrophic fire risk. Disposal of waste materials (dust, scrap, varnishes or paints) could also create an environmental concern. Finally, the use of subcontractors as well as any contractual liability exposures should be reviewed for coverage.

Completed operations for general liability coverage is important as the carpenter may provide the framework upon which others build. Quality control and full compliance with all construction, material and design specifications are necessary. Inadequate monitoring of work orders and change orders may also be a concern. Poor record-keeping may necessitate payment of otherwise questionable claims. Inspection and written acceptance of the work by the owner or general contractor is recommended.

Commercial Property Insurance
Property exposures at the carpenter’s own location are usually limited to those of an office and storage of materials, equipment and vehicles. If the carpentry business owns the building then commercial property insurance should be purchased. Business personal property can also be covered for furniture and other assets that stay at the primary location.

Inland Marine Coverage
Inland marine coverage includes owned or rented tools and equipment including tables saws, scaffolding, building materials (builders risk or installation exposure) and materials being transported to and from the job-site. Carpenters’ tools and equipment are heavy but unlikely to be damaged during transport. Transporting woodwork done at the carpenter’s shop increases the exposure as these items are more susceptible to damage from shifting, improper loading or inadequate tie-down.

Equipment at a job-site can be damaged by drops from heights, weather damage or being struck by vehicles. Equipment and supplies left at job-sites increases the possibility of loss due to theft and vandalism. Inland marine insurance covers these losses on tools and equipment.

Commercial Auto
Automobile liability exposures are limited unless lumber and pre-made items are transported by the carpenter. Hazards of transport include failure to secure the load properly and equipment failure, especially tie-downs and hitches. Age, training, experience and driving records, as well as age, condition and maintenance of the vehicles, are important considerations. If over-sized items are transported, clear marking of vehicles is important. Companies who allow employees to drive their personal vehicles for work should purchase hired and non-owned auto coverage in case employees are the cause of an accident. This coverage can easily be added to most GL policies.

Workers Compensation
Workers comp liability varies based on the size and nature of the job. Work with hand tools and sharp objects such as saws, chisels and nails is common to all types of carpentry and can result in cuts, piercings and accidental amputation. Lifting injuries such as hernias, strains, sprains and back injuries may occur. Minor injuries may be frequent even when the severity exposure is controlled. When work is done on ladders and scaffolds, there is a potential for severe injury or death from falling, being struck by falling objects or adverse weather conditions. The absence of good maintenance of scaffolds; proper use of basic safety equipment, such as properly installed guards, steel-toed shoes and eye protection; and strict enforcement of safety practices may create more liability.

General Liability Insurance Quotes for Carpenters

General Liability Shop.com offers lower cost liability insurance quotes for Carpenters throughout the U.S. Our Carpentry liability programs include all lines of business insurance, as well as our package programs for business owners policies (BOPs) for Contractors. Contact one of our business insurance Specialists today at 800-900-8657, or start a quote online now.

Carpenter Liability Classification Codes

Commercial insurance companies use various liability classification systems in order to classify and rate coverage costs for Carpenters. Here are the most common business insurance classifications for Carpentry:

Business Liability Category: Artisan Contractors and Construction

SIC Business Insurance Codes:

• 1751: Carpentry Work
• 1521: Residential Construction

NAICS Liability Classifications:

• 238350: Finish Carpentry Contractors
• 236118: Residential Remodelers
• 238330: Flooring Contractors
• 238390: Other Building Finishing Contractors

Business ISO General Liability:

• 91340: Carpentry—Construction of Residential Homes
• 91341: Interior Carpenter
• 91342: Carpentry—Not Classified Elsewhere
• 91343: Carpentry—Shop Only

Common Workers Compensation Class Codes:

• 5437: Carpentry—Cabinets and Interior Trim
• 5403: Carpenters—Not Classified Elsewhere
• 2802: Carpentry—Shop Only
• 5432: California Class—Carpentry
• 5645: Carpentry—Residential Construction