Do Self-Employed Carpenters Need Insurance?

In 2019, around a million carpenter jobs were available. One reason why many like the job are the big rewards they can get from working independently. Nevertheless, carpenters can also be at risk because of the responsibility and freedom that they have.

If something goes wrong, they’ll be the only ones responsible for it. That is why if you want to pursue a carpentry career, having insurance is important. If you’re a self-employed carpenter, then you must understand why you need to have insurance.

Self-Employed Carpenters Types

It doesn’t matter what kind of self-employed carpenter you are; insurance is a must. There can be small differences in the type of insurance you can avail of. Let’s have a look at the two primary types of carpentry business so you can figure out the type of self-employed carpenter you are and what insurance type you will best benefit from.

Sole Proprietor

A sole proprietor does not have employees. The advantage to this is that you’re the only one responsible for your projects. Hence you only have to get insurance for yourself. If you are a subcontractor, then you belong to this type as well.

However, some contracts you have at work may need the same insurance as big companies. Therefore, we highly advise talking with your agent to know what documents you need and how you can complete them.


A company is basically a partnership or an LLC (limited liability company). The claims risk involved in this is a little higher when employees are present. You will also likely need more insurance since you also have to cover that of your employees.

Insurance Types You Need

Here are the options you have for carpenters insurances:

General Liability

Having general liability insurance means having coverage when someone claims they were injured or their property was damaged because of the work you did. Even if it’s an accident, you can still be faced with a big lawsuit, which is why having this type of insurance helps a lot.

Professional Liability

This insurance type is more important if you do carpentry by giving consultation work or advice. Your client can file a lawsuit if they think that your advice resulted in financial difficulty or caused a delay in their project.

The policy could give defense coverage even if you did not make any mistake. Generally, this coverage is more expensive than lawsuits, lawyer expenses, and court fees.

Commercial Auto

Commercial auto is the insurance you need for vehicles you use at work. Many personal auto insurance policies don’t include business use of vehicles, even if you drive back-and-forth your work site. This insurance policy also includes damage to your vehicle and liability to others.

Inland Marine

Since you are doing professional trading, you likely have a lot of equipment and tools. Having inland marine or equipment floater insurance covers these. Since tools are costly, you don’t want to spend much for a replacement if they get stolen.

Workers Compensation

A workers’ compensation insurance is crucial if you have people working for you. This insurance provides morale to your people and is vital to your finances if they get hurt at work. Employers’ liability is also included in this policy.


Being an independent carpenter can be difficult due to the number of risks available such as injury at the workplace, damaged property, and even lawsuits. However, if you are an insurance self-employed carpenter, you can enjoy more peace of mind and concentrate more on operating your business.

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