Carpenter Insurance

Everything You Need To Know About Carpenter Insurance

If you’re a carpenter in business for yourself, then you’re probably so focused on securing contracts that you may have forgotten another important aspect of running your business – securing yourself and your business from financial litigation. 

Why Carpenter Insurance?

There are all sorts of reasons why you could find yourself defending yourself in court, but you can eliminate some of that risk in your business by purchasing a carpenters insurance policy. 

Carpenter insurance is crucial to protect you from several types of financial and professional risks, such as: 

Subcontractor liability

As you’re probably aware, when you hire subcontractors for your projects, then you’re the general manager of the project. Therefore, you’re the person responsible for any wrongdoing on the part of your subcontractor. This can include sub-par workmanship, especially if it causes your clients injury. Even if the work doesn’t cause injury, if your client has to pay another carpenter to fix the joy your team should have done correctly, then they can sue you for reimbursement and inconvenience. 

Here’s another scenario to consider – what you if learn that your subcontractor has committed criminal activity while on your job site? This can include stolen property, stolen funds, theft of materials, or theft of data. Your business will be held liable for all of these, even if you had no knowledge of the crimes. 

Not being able to generate clients

Not only would a smart client insist on verifying proof of licensure before you begin a job, but they’ll also ask for proof of general liability carpenters insurance. If you don’t carry insurance for carpenter contractors, then you’ll probably find that you’re not able to place new clients on the books – and this will mean that you’ll lose your ability to generate revenue. 

Protection against crippling claims

Every year, carpenters and other contractor professional find themselves either crippled or driven out of business due to financial claims against their business. The fact is, your clients can sue you for any number of reasons and win. If they win, then you’ll be forced to either write them a check to settle the suit, or you could be forced to liquidate your assets to satisfy the claim. 

To be plain – after all of the years you’ve placed into gaining licensure and certifications, and after all of the effort you’ve placed into growing your business, everything could all come crashing down because of a lawsuit claim that you can’t afford to pay. 

And by the way, this says nothing of your business reputation once potential clients learn of a judgment held against you. But the good news is, there’s a way to avoid out of these outcomes. You can purchase insurance for carpenter contractors.

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