How much does carpenter insurance cost?

Carpenters can save money on business insurance by comparing quotes from different providers with Insureon. Your premium depends on the type of policy, coverage limits, deductibles, and factors such as your business's location and number of employees.

Top carpenter insurance policies and their cost

Here are the top insurance policies purchased by carpenters and their average monthly premium:

Our figures are sourced from the median cost of policies for carpenters who apply for quotes with Insureon. The median offers a better estimate of what your business is likely to pay because it excludes outlier high and low premiums.

General liability insurance

Carpenters pay an average of $85 per month, or $1,020 annually, for general liability insurance.

General liability insurance provides financial protection against common lawsuits from customers. It can cover costs if someone sues your carpentry business for a bodily injury, property damage, or copyright infringement.

This is the average commercial general liability policy for carpenters who buy from Insureon:

Premium: $85 per month Policy limits: $1 million per occurrence; $2 million aggregate Deductible: $500

The cost of general liability insurance depends on factors such as the coverage limits you choose, the size of your business, the amount of foot traffic, and any subcontractors or additional insured endorsements. Learn more about how your premium is calculated.

Business owner's policy

Carpenters pay an average of $116 per month for a business owner's policy, or $1,397 per year.

A business owner's policy bundles two important types of coverage at a discount. It includes general liability insurance to protect against common lawsuits, and commercial property insurance to cover stolen or damaged business property.

This is the average business owner's policy for carpenters who buy from Insureon:

Premium: $116 per month Policy limits: $1 million per occurrence; $2 million aggregate Deductible: $1,000

The cost of a business owner's policy depends on factors such as the coverage limits you choose, the size of your business, the amount of foot traffic, and the value of your business property.

Workers’ compensation insurance

Carpenters pay an average of $282 per month, or $3,388 per year, for workers’ compensation insurance. There's usually no limit to how much a workers' comp policy can pay out for employee benefits, though it depends on state laws.

Workers' comp helps pay for medical bills from work-related injuries and illnesses. Most policies include employer's liability insurance, which covers the cost of lawsuits related to employee injuries.

Even self-employed carpenters with no employees should consider buying this coverage, as your personal health insurance likely excludes work-related injuries.

The cost of workers' compensation insurance depends on factors such as the number of employees and the type of carpentry work they do. Learn more about how workers' comp costs are calculated.

Commercial auto insurance

Carpenters pay an average of $160 per month for commercial auto insurance, or $1,915 annually. This coverage is required in most states for vehicles owned by a business. For personal, rented, and leased vehicles used by your business, look to hired and non-owned auto insurance (HNOA) instead.

A commercial auto policy provides financial protection in the event of an accident involving your business vehicle. It can help pay for property damage, medical expenses, and legal costs.

The cost of commercial auto insurance depends on the coverage options you choose, the value of the vehicle, and the driving records of anyone permitted to drive it. Learn how insurance companies calculate your premium.

Contractor’s tools and equipment insurance

Carpenters pay an average of $14 per month, or $169 per year, for contractor’s tools and equipment insurance, which covers saws, hammers, wrenches, and other mobile tools valued at less than $10,000.

A form of inland marine insurance, this policy helps cover the repair or replacement of lost, stolen, or damaged tools and equipment. It provides coverage for items in transit, at a worksite, or stored off-site.

The cost of contractor's tools and equipment coverage depends on the value of your tools and equipment and the type of work you do.

Professional liability insurance

Construction and contracting businesses pay an average of $74 per month for professional liability insurance, or $886 annually. Carpenters can often add this coverage to general liability insurance for a discount, with the bundle costing an average of $112 monthly.

Professional liability insurance protects carpenters from legal fees related to accusations of negligence or substandard work, such as failing to use the type of wood requested by a homeowner. It's sometimes referred to as errors and omissions insurance (E&O).

This is the average insurance coverage for construction and contracting professionals who buy from Insureon:

Premium: $74 per month Policy limits: $1 million per occurrence; $1 million aggregate Deductible: $1,250

The cost of professional liability insurance depends on factors such as the coverage limits you choose, the size of your business, and your profession. Find out how insurers set professional liability premiums.

Commercial umbrella insurance

Carpenters pay an average of $83 per month for commercial umbrella insurance, or about $1,000 annually.

This policy boost the limits of your underlying general liability, commercial auto, or employer's liability insurance. When the underlying policy reaches its limit, commercial umbrella insurance activates to cover any costs over that limit, up to the additional limit of your umbrella policy.

The cost of commercial umbrella insurance depends primarily on the amount of coverage you purchase.

Builder's risk insurance

Carpenters pay an average of $83 per month, or $999 per year, for builder's risk insurance. This type of insurance is also called course of construction insurance.

This policy covers a structure under construction in the event of fire, theft, vandalism, or similar risks. It typically covers the structure and any materials at the jobsite.

The cost of builder's risk insurance depends on the total completed value of the structure.

Surety bonds

Carpenters pay an average of $8 per month for surety bonds, or $100 annually. You may need a bond to sign a contract with a client or bid on a project.

A surety bond reimburses your client if you're unable to fulfill the terms of a contract or other agreement.

The cost of a surety bond depends primarily on the value of the bond.

How do I get carpenter insurance?

Insureon can help you find affordable carpentry insurance in three easy steps:

A licensed insurance agent will help make sure your coverage matches your business risks and state insurance requirements. Once you've bought a policy, you can download a certificate of insurance for proof of coverage. Most small business owners can get covered within 24 hours of applying for quotes.