Woodworking is a business specializing in the shaping, installation, and cutting of wood materials throughout the construction process. While woodworking manufacturers offer a valuable service, there is always an accident or property damage risk due to the nature of the business. And this is where insurance for woodworking business can help. It’s designed to protect businesses’ financial assets and is a pivotal investment for woodworkers. All trades, irrespective of industry, encounter risks that insurance should cover.
From a woodworking manufacturing business’s standpoint, insurance is to pay for your liabilities with the best, broadest security. In addition to coverage-related considerations, you may have specific insurance requirements.
This article will expound on and work through different types of woodworking manufacturer business insurance so you can decide on the relevant ones as per your needs.
Types Of Insurance For Carpenters
Based on your specialization, woodworking manufacturer insurance typically involves insurance policies. Every policy has a unique role to play in lowering your risk exposure.
Commercial General Liability
Commercial general liability is the most common policy that woodworking manufacturers need. This insurance policy for carpenters safeguards your manufacturing business from unexpected financial fallouts of injuring a person or destroying someone’s property while carrying out your tasks. For instance, if your cabinets fell and harmed a client, the commercial general liability insurance would cover your legal bills.
Getting a commercial general liability policy is critical because of how big or small your manufacturing business might be. This insurance type provides coverage for third-party injuries, property damage, and legal fees and settlement.
Building And Contents Coverage
Contents and building insurance policy covers the building (and its contents) for the physical damage that may occur at your facility. The significant amount of raw sawdust and lumber in carpentry facilities exposes a higher risk and can cause damage. This is why content and building insurance coverage is a vital policy that you can get. However, the increased danger also makes it challenging to find a reasonable rate.
For this policy, it’s good to work with an insurance provider with expertise in the carpentry industry and wood-products manufacturing.
This type of insurance policy helps cover any of the following damages related to your business:
- The property
- The contents within it
- The structure
Suppose that there is a storm that can cause damage to your facility, an act of vandalism, or somebody steals equipment, then the building insurance policy will help you pay for the damaged equipment, repairs, or stolen equipment’s replacement.
If you are in a woodworking manufacturing specialization that demands you to make specific products and deliver them to the job location for installation, such as custom cabinet makers, you’ll need installation floaters.
This policy covers all the property stored on or transported to the job site that awaits installation. When you have this protection and security, if a car accident destroys your work or the products get stolen from the site, you can recover your costs.
But make sure you work with an independent insurance agent to determine your specific woodworking manufacturing business’s insurance needs.
Workers’ compensation insurance is your critical concern as a contractor. This policy pays for lost wages and employee injuries if they get injuries while performing their job. Also, a workers’ compensation policy is required by law.
If you are a self-employed tradesman, some states have exemptions on the insurance policy requirement, sometimes known as an affidavit of exclusion. If you work on commercial jobs or for general contractors, you may be required to have this policy (workers compensation), even if you don’t have employees.
A workers’ compensation insurance policy is essential to protect your team from work-related injuries that they sustain. Any employee who suffers an injury while they are working with machinery will be covered for the following:
- Their medical bills
- Their lost wages while out of work
- Any required rehabilitation
- And more
Commercial Umbrella Insurance
Commercial umbrella insurance provides an extra liability protection layer to several other policies you get. It helps when you have reached the limits of other applicable insurance policies and protects you from claims that surpass the coverage amount from your other policies.
Error and Omissions Insurance
You can use an error and omissions insurance policy interchangeably with liability and indemnity insurance. It safeguards you against mistakes or oversights you may make as a woodworking manufacturer.
Commercial auto insurance policies can help you cover the property damage, lawsuits, medical bills, and expenses that can arise from an accident. Also, it pays for vandalism, vehicle theft or vehicle damage, or vandalism due to weather.
Moreover, you can tailor this policy to fit your woodworking manufacturing business’s unique needs. For instance, a painter’s vehicle may need more coverage than a plumber’s van as it is driven daily.
Get Your Insurance For Woodworking Business Quote Today
Running a woodworking business is difficult enough without fretting about employee injuries, property damage, lawsuits, and employee injuries. Having the correct type of insurance allows you to have peace of mind and focus on core business areas.
An insurance agency like JMG helps you find the right coverage that is well-suited to the needs of your woodworking manufacturer business. If you have any questions or want a quote for woodworking manufacturer business insurance, reach out to us or request an insurance quote today from JMG.