Whether you specialize in exterior or interior, rough or finished work, with carpentry, potential liability could be a simple missed screw or momentary distraction away. From handymen to industrial carpentry businesses, ALIGNED will customize a carpentry business plan that’s built to your specifications.
Potential Liability Facing Carpentry Businesses
Examples of liability scenarios facing carpentry businesses include:
- A mistake made by your company on a scaffolding job results in serious injury to workers or the general public.
- A mistake on a framing job doesn’t show itself until cracks start appearing in the drywall, resulting in costly repairs.
- A client’s child is injured after playing with a nail gun you accidentally left lying around unsupervised.
- When working in a home, a member of your crew accidentally severs a water line, causing thousands of dollars in damages.
- The railing becomes loose on a deck that you built. Your client falls over the side and breaks his shoulder.
Regardless of the size of your carpentry business, Commercial General Liability Insurance is a necessary coverage to protect your company from costly litigation and damages.
If you’re faced with a lawsuit that alleges personal injury (either at your office, shop or on a client’s premises), property damage, false advertising and libel or slander, a CGL policy can provide coverage for:
- Medical expenses and property repair or replacement costs
- Lawyer’s fees and defense costs
- Out-of-court settlements
- Awards for damages
Keep in mind that a lawsuit without any merit can still be filed against you even if you’ve done nothing wrong, costing you a considerable amount of money to defend against it.
Depending on the size of the projects you work on and the materials you work with, you may also need:
Umbrella Liability Insurance – provides coverage for costs of a claim that exceed an underlying policy’s limits.
Our carpentry business type of insurance plans can protect you from both premises liability exposures and completed operations liability exposures.
Additional Carpentry Business Insurance Coverages You May Need
Business Property Insurance – as a carpentry business, you work with highly flammable materials. Whether you have a shop in your garage, lease, or own a shop or office, a commercial property insurance policy can protect your building and contents from perils such as fires, floods, vandalism and more.
Coverage can also include protection for your tools, machinery and equipment in transit and on the job site.
Commercial Auto Insurance – which covers your trucks and trailers. If you use a personal vehicle for business purposes like transporting materials to a worksite, your personal auto insurance policy may not cover you for an accident.
We also provide construction bonds for your carpentry business to bid on public and commercial contracts. For more information, visit our Types Of Commercial Surety Bonds In Canada page.
Do carpenters need to be insured?
While insurance isn’t mandatory for carpenters, we always recommend a comprehensive insurance policy. It protects your carpentry business against third-party liability claims and lawsuits, damages, loss of income, and repairs from insured perils.
Carpenters are exposed to unique risks every day during daily operations. There could be unsatisfied customers that sue for property damage, negligence, or injury. The equipment, fleet, and commercial property you rely on to operate smoothly could also get damaged.
Any potential risk your carpentry business faces could result in costly litigation or repairs. Without insurance, you’re forced to pay out-of-pocket for any expenses incurred, adding up to thousands of dollars or more. Carpentry business insurance helps you mitigate financial loss resulting from these risks.
For example, suppose a customer sues your business for property damage caused by one of you or your employees. In that case, insurance can help with settlement awards, legal fees, and other potential expenses.
You can add many types of insurance products to your landscaping business insurance policy. Each product protects your business from a different type of liability or damage risk. You can also determine how much insurance you want and the coverage limits.
Speak with one of our insurance specialists to determine what types of insurance you need and how you can compare different policies.
Does a handyman need insurance in Ontario?
It’s not mandatory for a handyman to carry insurance in Ontario law. However, we always recommend a robust, comprehensive insurance package for all business owners, as we mentioned. In some cases, general contractors and stakeholders require proof of insurance to secure work or a contract. Ontario contractors are required to carry contractor’s insurance.
For example, you might be a subcontractor or independent contractor that wants to work for a general contracting company. In these cases, you must purchase an insurance policy that meets the contractor’s requirements or an individual who wants to hire you. General contractors want to ensure liability is covered in case of a claim or lawsuit.
Get ALIGNED With Carpentry Business Insurance that’s Custom-Made For Your Business.
Just as your trade is carpentry, commercial insurance is all we do. When you choose ALIGNED, you get a commercial insurance specialist advocating on your behalf for comprehensive carpentry business insurance at affordable rates from Canada’s top insurance companies. Contact an ALIGNED advocate to get a free quote on carpentry business insurance in minutes or get started right away by using our free online tool.