INSURANCE FOR CARPENTERS
WHAT TYPE OF INSURANCE DO CARPENTERS NEED?
The most common small business insurance policies carpenters carry are: general liability, commercial property and commercial auto. There are other specialty coverages available based on their specific operations.
There are several types of insurance policies carpenters should carry. Some are required and some are optional, but all are a valuable assets to your business. Essential carpenters insurance policies include:
Commercial General Liability
No matter how big or small your business may be, general liability insurance is an absolute must. This type of insurance offers coverage for third party injuries and property damage, as well as legal fees and settlements.
For instance, if you or an employee damages a client's property, general liability insurance will help to pay for the repair or replacement of the damaged property. If that client files a lawsuit against you, this type of carpenters insurance will also help to cover the cost of legal expenses.
Commercial Property
A business property insurance policy covers damages to your business, including the structure, the contents within it, and parts of the property surrounding it. For example, if a storm damages your building, someone steals equipment, or there is an act of vandalism, this type of insurance coverage will help pay for any repairs that need to be made and the replacement of stolen or damaged equipment.
Workers Compensation
If you employ a crew of carpenters, workers comp is vital. In most states it's required. This coverage protects your employees from any work-related injuries or illnesses that they may sustain. If an employee suffers an injury while operating machinery, workers comp insurance will pay for medical bills, wages that are lost while the employee is unable to work, any rehabilitation that may be necessary, and a number of other things.
Business Auto
If you rely on cars or trucks for your business, having a commercial auto insurance policy is a wise idea. Should you be involved in an accident while driving a work van to a job site, this policy will cover the damages to vehicles involved in the accident, medical bills, and damaged equipment inside your van.
WHAT FIELD OF CARPENTRY BENEFITS MOST FROM INSURANCE COVERAGE?
CARPENTERS MOST LIKELY TO BENEFIT FROM INSURANCE COVERAGE
Rough and finish carpenters aren't the only professionals who should carry the above-mentioned policies; any professional who performs carpenter-related services should protect themselves with insurance coverage, including:
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Home, business, and framing contractors
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Cabinet installers
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Remodelers
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Framers
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Deck installers
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Roofers
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Construction companies
If you work in any facet of the carpentry industry, carrying the right insurance coverage is crucial.
Carpentry Risks & Exposures
Property exposures at the carpenter's own location are usually limited to an office and storage of materials, equipment, and vehicles. If the carpenter does shop woodworking, fire can result from the flammability of wood, paints, varnishes, and wood dust. There should be adequate ventilation and a dust collection system.
Flammable varnishes and glues should be properly labeled, separated, and stored away from combustibles. Some carpenters store lumber in their yards, increasing the potential for fire loss. Three-sided storage structures are highly susceptible to wind damage.
Premises liability exposures at the carpenter's shop or office are generally limited due to lack of public access. Fires or fumes from woodworking and/or lumber storage operations can spread to neighboring businesses or homes. Outdoor storage may create vandalism and attractive nuisance hazards. Off-site exposures are extensive. Jobsite operations include the potential for bodily injury to the public or employees of other contractors, or damage to their property or completed work.
Tools, power cords, building materials and scrap all pose trip hazards even when not in use. The use of saws and other power or hand tools is inherently hazardous due to sharp edges and moving parts. In enclosed buildings, the buildup of dust and scraps can result in catastrophic fire and explosion. Disposal of waste materials (dust, scrap, varnishes or paints) could create environmental hazards. There may be significant subcontractor and contractual liability exposures.
Completed operations liability exposures are high if the carpenter provides the structural framework of a building due to the potential for collapse. Quality control and full compliance with all construction, material, and design specifications are necessary. Inadequate monitoring of work orders and change orders may 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 critical.
Workers compensation exposures vary based on the size and nature of the job. Work with hand tools and sharp objects such as saws, chisels and nails can result in cuts, piercings, and accidental amputation. Back injuries, hernias, strains, and sprains can result from lifting. 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 indicate a morale hazard. Employees must be carefully selected, trained and supervised. Occupational disease exposures can result from exposure to noise, dust, and chemicals, such as from pressure-treated lumber.
Inland marine exposures include accounts receivable if the carpenter offers credit to customers, contractors' equipment for owned or rented tools and equipment, goods in transit, installation floater, and valuable papers and records for customers' and suppliers' information. Equipment at a job site can be damaged by drops from heights or the weather. Equipment and supplies left at job sites are subject to theft and vandalism.
Lumber or woodwork can be damaged during transport from shifting, improper loading or inadequate tie down. Oversized loads can be damaged by collision with stationary structures or other vehicles.