Whether you carry out work in customers’ homes, operate from a sawmill, or own a workshop, it is essential that you have comprehensive woodworker insurance in place.
Working with wood can be a risky business. Woodworker business insurance is designed to protect your financial assets, your bottom line, and your reputation.
By investing in woodworker insurance, you can cover your business for risks, such as property damage, bodily injury, legal defense, and medical payments.
Working with an insurer that offers business insurance specifically tailored to the individual needs of your business will ensure you are protected against these risks and covered for the costs associated with them.
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What Type of Insurance Woodworkers Need
The woodworker insurance you need will depend on the nature of your business.
However, a typical woodworker insurance policy might include the following coverage:
- General Liability
- Tools Coverage
- Auto Insurance
- Surety Bond
You may also need to take out additional coverage, such as business owner’s insurance and worker’s compensation coverage.
How to Get Woodworker Insurance
Woodworker business insurance can protect you against losses incurred while operating your business.
For example, if your property is damaged, or an employee or customer makes a claim against you.
The term ‘business insurance’ is often used as a blanket term for general liability insurance, but there are other types of insurance available.
Each policy is designed to provide coverage for different aspects of your business.
Working with an insurer experienced with woodworker insurance will help you to fill any gaps and ensure your business is fully covered for all eventualities.
Woodworker Liability Insurance Explained
With the best will in the world, accidents and incidents can happen.
When you have policies like general liability insurance in place, you will be protected against the unexpected.
From damage caused to a customer’s property to an accident being caused by your equipment on-site, liability insurance covers your business for repair costs and medical bills.
Liability insurance also extends to other unforeseen issues, such as copyright or libel claims made against your business.
In these circumstances, a liability policy is designed to pay your legal costs so that you can clear your name and focus on your business.
If you’re renting a workshop or other business property and it is damaged as a result of your business operations, your policy will pay for the repairs.
Woodworker Tools Coverage
What would you do if your tools were stolen from your vehicle or equipment was vandalized in your workshop?
This would no doubt result in downtime of your business or at the very least, delays to your customers.
Woodworker insurance policies are available to provide coverage for your tools and equipment.
When you are working in an industry where your tools are essential, it’s critical that you cover these assets with the best possible coverage.
An insurer will help you to calculate how much it would cost to replace your tools if they were lost, damaged, or stolen and build a suitable policy.
Woodworker Auto Insurance
If you use your vehicle to drive between job sites or to transport materials in your line of work, you will need a woodworker commercial auto insurance policy.
Your personal auto insurance will not cover you for accidents if you use your vehicle for business, even if you only use it occasionally.
To protect yourself, you should take out comprehensive commercial insurance coverage for woodworkers as part of your woodworker insurance policy.
It means you’ll be covered for medical costs and repairs if your work vehicle is involved in an accident.
Woodworker Bond
Customers and potential customers are becoming savvier and savvier when choosing woodworking contractors.
Many look for companies that are “licensed, bonded, and insured” when making a decision.
If you do not have a surety bond in place, your business could be overlooked.
A surety bond provides a guarantee to customers that you will complete the services they are paying for.
In many cases, you will be required to show evidence of a surety bond being in place before you start a job.
Don’t let projects get away because you don’t have adequate insurance in place.
These are just some of the surety bonds you should have in place as a woodworker:
- Contractor’s License Bond
- Contract Bond
- Performance Bond
- Janitorial Bond
- Dishonesty Bond
- ERISA Bond (For Directors and Officers)
- Bid Bond
Other Coverage to Consider
The policies above give an indication of the minimum level of woodworker insurance you should have in place.
However, there are other policies you may need to consider depending on the nature of your business.
Building Insurance
A building insurance policy covers property damages to your business premises. If you own a workshop, office, or sawmill, this insurance is essential.
From a fire breaking out in your workshop to vandalism to your business premises, building insurance provides coverage for these events.
In an industry that deals with electrical equipment and flammable and combustible materials, building insurance is a very important consideration.
Cyber Liability Insurance
In today’s connected world, businesses are frequently exposed to data breaches and hacking incidents.
These events can be costly in the event that a cyber liability case is brought against your business.
For example, if sensitive customer or third-party data is exposed as a result of a cyber-attack, you could be held liable.
Cyber liability coverage is essential to any business that stores private data in electronic form and provides coverage for legal and compensation costs.
With hackers and cybercriminals becoming more and more sophisticated in their efforts, a cyber liability policy is crucial for any business that relies on tech and data.
Workers Compensation
If your business has employees, even just one, it is your responsibility to take out a workers compensation policy as part of your woodworker insurance.
This policy will cover you and your employees should they get hurt or get sick while employed by your business.
From medical coverage and temporary disability coverage to permanent disabilities to death in service, workers comp protects you against the costs associated with these events.
Business Owners Policy
A business owner’s policy (BOP) combines business liability insurance and business property insurance into one policy.
It’s one of the most efficient ways to protect your business against the unexpected. A BOP is essential if your business has:
- A physical location or address that you rent or own, whether it’s a workshop, an office, or a sawmill.
- The potential for customers to make a claim after suffering an injury in your workplace.
- Digital assets, cash, furniture, or equipment that could be lost, damaged, or stolen.
