Carpentry covers a wide range of work, and insurers price it that way. A finish carpenter hanging trim and installing built-ins carries far less risk than a framing crew working on scaffolds and roofs. Your rate depends on where your work falls.
Most carpenters start with general liability and tools and equipment cover, since saws and nailers are both the heart of the job and a favorite target for thieves. Workers comp follows as soon as you hire help.
What insurance do carpenters need?
Here is how each type of carpentry insurance fits a typical carpenter business, from what clients and states usually require to what depends on how you work.
General liability
Usually requiredClients and GCs ask for it on every job. Pays for injuries and property damage you cause to other people.
About $94 a month for carpentersWorkers comp
Usually requiredFraming and scaffold work bring higher comp rates. Pays medical bills and lost wages when an employee gets hurt on the job.
About $201 a month for carpentersTools & equipment
Usually requiredSaws, nailers, and jobsite gear. Replaces tools and gear that get stolen, lost, or damaged.
Commercial auto
Most carry itTrucks hauling lumber and tools. Covers trucks and vans you use for work, and the damage they cause.
About $239 a month for carpentersBusiness owners policy
Depends on your setupIf you run a shop. General liability and business property bundled together, usually for less.
About $130 a month for carpentersLicense & surety bonds
Depends on your setupWhere your state requires a contractor license. A guarantee to your customer or the state that you will follow the rules and finish the work.
How much does carpentry insurance cost?
The typical carpenter business pays about $94 a month, or $1,124 a year, for general liability, based on published customer data. Your price moves with your services, revenue, crew size, claims history, state, and the limits you choose.
| Policy | Typical monthly | Typical yearly |
|---|---|---|
| General liability | $94 | $1,124 |
| Business owners policy | $130 | $1,560 |
| Workers compensation | $201 | $2,412 |
| Commercial auto | $239 | $2,868 |
Source: Insureon cost data for this trade. Yearly figures without a published annual number are the monthly figure times twelve. These are typical figures, not quotes.
Want a number for your setup? Try the contractor insurance cost calculator, or see ways to get cheap contractor insurance.
Common carpenter insurance claims
- Framing and height workFraming, roof, and scaffold work raise both liability and workers comp prices. Finish work prices lower.
- Workmanship and material claimsUsing the wrong wood or a failed install can lead to damage claims from the client.
- Tool and material theftSaws, nailers, and lumber left on site get stolen. Tools and equipment cover replaces your gear.
- Injuries to othersA client walks into an open work area and gets hurt. General liability pays the medical and legal costs.
Carpenter license and bond requirements
Some states require a contractor license for carpentry jobs above a dollar amount, and many cities require registration or permits. Check your state contractor board before you bid larger jobs.
Confirm before you rely on this. Licensing and insurance rules change, and cities can add their own. Check with your state licensing board and a licensed agent before you bid.