The policies a carpentry business carries
Carpenters work in finished homes with saws and nail guns, so damage to the rest of the house and injuries from the tools are the claims to plan for. Work that fails later, like a stair rail or a cabinet that pulls off the wall, is the other.
| Policy | Average a month |
|---|---|
| General liability | $94 |
| Tools and equipment | $42 |
| Commercial auto | $239 |
| Workers' compensation | $201 |
| Surety or license bond | $9 |
| Business owner's policy | $130 |
| Professional liability | $67 |
| Commercial umbrella | $116 |
| Builder's risk | $108 |
Averages are what Insureon's customers who are carpenters pay, from Insureon's cost page; most of its customers have fewer than five employees. Across all its small business customers, general liability runs $265 to $3,030 a year.
Claims carpenters plan for
- A stair rail you installed comes loose
- A nail gun shot goes through a water line
- Upper cabinets pull away from the wall
- Saw dust ruins a finished floor in the next room
Ask your agent, in these words:
- Would my policy pay if a stair rail you installed comes loose?
- Would my policy pay if a nail gun shot goes through a water line?
- Would my policy pay if upper cabinets pull away from the wall?
- Would my policy pay if saw dust ruins a finished floor in the next room?
Name the work you sell
A policy covers the work you describe on the application. From the carpentry services list, name each of these and ask whether any is excluded: crown molding, mdf, installed; crown molding, solid wood, installed; baseboard and casing; wainscoting and accent walls; interior prehung door, installed; pocket door, installed; cabinet installation only; old cabinet removal and haul away; built-in shelves and closets; wall framing; rot repair; stair and railing repair.
Saws, nailers and compressors are worth listing on the tools policy. On the tools list, the items to list on the policy are track saw and rail; jobsite table saw; framing nailer; router with a set of bits; dust extractor; wood moisture meter, and from the starter kit, framing hammer, 20 oz milled face; cordless drill and impact driver; cordless circular saw; miter saw on a stand; speed square, framing square and chalk line.
State rules in the license
Carpentry work often falls under the general contractor rules. Our general contractor license guide lists the insurance and bond line for each of 48 states from the boards' own pages.
Workers' comp and bonds
The SBA says every business with employees must carry workers' compensation, unemployment and disability insurance. Insureon's average for carpenters is $201 a month, priced per $100 of payroll. A bond protects the state or the customer, not you; Insureon puts its yearly cost at a share of the bond amount:
| Bond amount | Estimated yearly cost |
|---|---|
| $5,000 | $25 to $500 |
| $10,000 | $50 to $1,000 |
| $50,000 | $250 to $5,000 |
Certificates of insurance
General contractors and remodelers ask for a certificate before they bring you onto a job. Keep a PDF on your phone so you can send it the day they ask.
Sources
- Insureon: Insurance cost for carpenters, checked October 9, 2026
- Insureon: General liability insurance cost, checked October 9, 2026
- Insureon: Workers' compensation insurance cost, checked October 9, 2026
- Insureon: Surety bond cost, checked October 9, 2026
- SBA: Get business insurance, checked October 9, 2026
- Koira: General Contractor license requirements by state (each row lists its board sources), checked October 9, 2026
Last checked October 9, 2026. This page is general information, not legal or tax advice. Rules change and differ by state and city, so confirm with the agency named before you act.