Carpenter insurance—So I was on this jobsite last Tuesday—ya know, the Johnson kitchen remodel—when my phone buzzed. It was Dave. Remember Dave? Framed houses with me back in ’08 before the market crashed? Anyway, Dave’s calling me in a panic cuz his tablesaw kicked back and caught this new kid square in the ribs. Kid’s ok (thank God) but Dave’s freaking out about medical bills and liability and all that.
Got me thinking about how many of us woodworkers are one bad day away from financial disaster. Not trying to be a downer here, but after 20+ years of hanging doors and building cabinets, I’ve seen too many good carpenters lose everything over stuff insurance woulda covered.
Listen, none of us got into carpentry cuz we love paperwork and policies. We do this cuz we love working with our hands, right? Love the smell of fresh-cut pine and the feeling when a drawer slides just perfect.
But here’s the deal – last year alone I personally know 3 guys who:
Plus my cousin Eddie – concrete guy, not carpenter, but whatever – he showed up to bid a big commercial job and they wouldn’t even let him QUOTE without proof of insurance. Lost a $40k job just like that.
K so here’s what you actually need, from someone who’s made every mistake in the book:
This covers you when you accidentally put your ladder thru somebody’s window or when some kid trips over your extension cord. Honestly without this ur playing with fire.
Not gonna lie, I skipped this my first few years. Total idiot move. Then I bumped a client’s antique table while bringing in lumber and the repair was $2700. Learned my lesson fast. Now I pay about $1200/yr for a million in coverage.
Take a sec and add up what’s in your truck and shop right now. Go ahead, I’ll wait.
Scary number, right? My DeWalt collection alone is worth more than my first car lol. After my buddy Ryan had his trailer stolen (with literally EVERYTHING he owned in it), I added this coverage the next day. Costs me about $450/year for $25k in coverage.
Funny story – had a cheapo Harbor Freight sander get stolen last winter. Insurance actually paid me enough to upgrade to the Festool I’d been eyeing. Silver linings?
If you’re hauling tools and materials in your truck or van, your regular car insurance probably ain’t covering accidents while you’re working. Found this out when I backed into a mailbox delivering cabinets. Personal policy told me to take a hike since I was “using vehicle for business purposes.” Whatever that means.
Costs a bit more but worth it when you think about how much driving we do between lumber yards, hardware stores, and jobsites.
Got employees? Then you legally need workers’ comp in most states. But even if it’s just me, myself and I, I still carry it.
Why? Cuz I threw my back out lifting a granite countertop last summer, and regular health insurance tried to deny my claim when they found out it happened on a job. Workers’ comp covered my treatment AND paid me some income while I was laid up.
Plus clients love seeing you have it. Makes em feel like they won’t get sued if something happens to you on their property.
This one covers you when clients say your work isn’t up to snuff or caused problems down the line.
Lemme tell ya about my buddy Joe who built this gorgeous custom entertainment center. Client approved the design, watched it being built, said it was perfect. Then they put their massive TV on it and claimed the center shelf sagged after a month. Wanted Joe to rebuild the whole thing for free! His professional liability coverage saved his bacon.
If you’re lucky enough to have your own workshop (I’m in a 2-car garage I converted), property insurance covers the space and larger equipment that doesn’t move around much.
Last December we had that crazy ice storm, remember? Tree branch crashed through my shop roof. Without property coverage, I’d have been out $12k+ for repairs and water damage to machinery.
This one’s for bigger remodels and new construction. Protects the structure and materials while you’re building.
My brother-in-law does mostly new construction, and he had a framed house get hit by straight-line winds before they got the sheathing on. Knocked half the frame down like dominos. Builder’s risk covered the materials and labor to rebuild what was lost.
Insurance feels like setting money on fire until the day you need it. Here’s how I keep costs manageable:
I get my general liability and property insurance together as what they call a BOP (Business Owner’s Policy). Saves me like 20% compared to buying separate.
I’d rather pay $1000 out-of-pocket when something happens than shell out extra every single month. Higher deductibles = lower premiums. Just make sure you keep enough in your emergency fund to cover that deductible.
My first insurance agent was this young guy who mostly sold homeowners policies. Nice enough but clueless about construction. Now I work with Maria who specializes in contractor insurance. She’s found me better coverage for less money because she actually understands what I do all day.
Maria tells me what I actually need vs what I can skip. She doesn’t try to sell me coverage for stuff that doesn’t apply to my kinda work. Worth her weight in gold.
I added a spray booth to my shop last year for finishing. Turns out this changed my insurance needs completely. Good thing I mentioned it to Maria before renewal time.
Your business changes, make sure your coverage keeps up.
So you’re wondering why you pay more (or less) than other carpenters for insurance? Here’s the real deal:
Been in business 10 years with no claims? You’ll pay way less than the new guy or someone who’s filed three claims in two years. Insurance companies LOVE boring businesses that never file claims.
Working in ritzy neighborhoods? Your general liability will cost more because potential damage claims are higher. Working in a high-crime area? Your tool coverage costs more because theft is more likely.
I moved my shop from east side to west side of town and my rates dropped almost 15% just from the zipcode change.
Rough carpentry vs finish work makes a difference. Roofing work vs ground-level work makes a HUGE difference (my buddy who does both pays almost double what I do). New construction vs remodeling affects rates too.
Just you? You’ll pay different rates than a crew of 5. LLC vs Sole Proprietor? Yep, that matters too.
I incorporated as an S-Corp two years ago (for tax reasons) and my insurance agent had to rewrite all my policies. Rates actually went down a bit, which was a nice surprise.
Finding a good insurance partner is like finding a good subcontractor – worth their weight in gold. Here’s what to look for:
My first agent kept asking if I needed coverage for “cabinetry installation” separate from “carpentry.” Like those are different things??? Find someone who knows a jamb saw from a jigsaw.
When you need proof of insurance for a job starting tomorrow, you need someone who picks up or calls back fast. My agent Maria texts me certificates of insurance same-day when I need them.
Independent agents can check rates from a bunch of companies. The ones tied to just one company (like State Farm or whatever) can only offer what that company has.
Good agents explain what you’re buying in normal human language. Bad ones throw around terms like “riders” and “exclusions” without explaining what that means for YOU.
OK so I’m not gonna pretend insurance is fun to buy. It’s not. It’s a pain in the butt and feels like throwing money away…until the day you need it. Then it’s suddenly the best money you ever spent.
I’ve seen way too many skilled carpenters lose their businesses, their tools, their savings – all over stuff that insurance would’ve covered. Don’t be that guy.
Your hands and skills took decades to develop. Your reputation took years to build. Your tools represent thousands of dollars and countless hours. All that can disappear because of one accident, one lawsuit, or one theft.
Get yourself covered. Not tomorrow, not next week. Today. Seriously, call someone today.
I use the folks at Number1Ins.com because they actually understand construction without all the corporate BS. They helped me figure out exactly what I need for my custom cabinet business without selling me a bunch of extra garbage I don’t need.
Anyway, gotta get back to the Johnson kitchen. These crown moldings ain’t gonna install themselves, and I’m already behind schedule cuz their countertop guy showed up late. Again.
Stay safe out there and watch those fingers!
