Carpentry & Woodworker’s Insurance

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Types of Insurance

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Common Types of Woodworker’s Insurance

Commercial General Liability Insurance

Coverage for common risks.


  • Customer-sustained injuries
  • Damaged customer property
  • Advertising injuries

Typical Cost & Factors

  • $400-$800 per year
  • Depends on coverage needs, staff size


 Commercial Property Insurance

Coverage for risks to property.


  • Fires and water damage
  • Vandalism and break-ins
  • Damage to merchandise and inventory

Typical Cost & Factors

  • $600-$1000 per year
  • Depends on value of property


Workers’ Compensation Insurance

Coverage for employee injury.


  • Medical bills for job-related illness or injury
  • Wage replacement during recovery time

Typical Cost & Factors

  • $700-$1400 per year
  • Depends on number of workers, level of occupational risk

    A Few Examples of Each of These Policies In Action

    Example 1: Commercial General Liability Insurance

    A customer walks into your shop and slips and falls.  They end up suing you for their injuries.  If you have Commercial General Liability Insurance this incident will be paid for by insurance.

    Example 2: Commercial Property Insurance

    Something in your shop sparks and catches on fire.  Consequently, the fire shatters a few windows and destroys some of your equipment.  If you have Commercial Property Insurance, you will be covered from an incident like this.

    Example 3: Workers’ Compensation Insurance

    An employee working in your shop saws their finger off on accident.  As a result, they’ll be out of work for months in order to let the wound heal.  If you have Worker’s Compensation Insurance, your insurance will still pay this employee even during their recovery time.

    Additional Types of Woodworker’s Insurance

    Business Interruption Insurance

    Coverage for temporary inoperability.


    • Lost income from inability to meet sales goals
    • Employee salaries

    Typical Cost & Factors

    • $500-$1000 per year
    • Depends on revenue, property, and industry risks


    Crime and Theft Insurance

    Coverage for criminal activity.


    • Check fraud
    • Shoplifting of inventory
    • Cash register content theft

    Typical Cost & Factors

    • $800-$1100 per year
    • Depends on high-value items, number of employees

    A Few Examples of Each of These Policies In Action

    Example 1: Business Interruption Insurance

    A major power outage hits your city.  It goes on for days, but finally, after less than a week, the power returns.  Unfortunately, you were unable to operate your business because of the outage.  Therefore, you lost profit.  If you purchase Business Interruption Insurance, you will be compensated for your loss of business.

    Example 2: Crime and Theft Insurance

    A few expensive pieces of equipment get stolen from your store.  But, if you have Crime and Theft Insurance it will help pay for the damages.



    Equipment Breakdown Coverage

    Vital machinery from cash registers to security sensors can be damaged by power surges or mechanical breakdown, which are often not included in, but can be added to, Commercial Property Insurance coverage.

    Extra Expense Coverage

    After properties have experienced a physical loss, like a natural disaster, Commercial Property Insurance may cover the costs to repair the location.  It will not, however, cover the costs of moving to a temporary location to keep business running without Extra Expense Coverage.

    Utility Interruption Coverage

    A Utility Services Exclusion found in many Commercial Property Insurance plans means that without this coverage, you will not be compensated in the case of a power outage resulting from something outside your business, like a knocked power line.


    Many insurance plans are commonly bundled together for simplicity and a cheaper rate.

    Business owner’s policy (BOP)

    A popular option for small businesses like clothing boutiques that combines Commercial General Liability insurance with Commercial Property insurance, usually at a cheaper price than if the two were purchased separately.

    3 Practical Ways to Reduce Your Insurance Costs as a Woodworker

    Woodworking is an inherently risky profession.  This is because you’re often working with flammable materials and machinery that have the potential to harm yourself, others, and your shop.  Because of its risk, this makes insurance rates more expensive.

    That said, here are a few steps you can take – according to Wood and Woodshop News that may help reduce your insurance costs:

    Tip #1: Don’t bring customers into your shop.

    The most obvious reason for this is because if you do, that means there is a chance for accidents and injury.  Basically, if you have a stringent policy that stops customers from entering your shop, it’ll help reduce your insurance costs.

    Tip #2: Keep your workspace tidy.

    Yes, it’s really that simple, because an untidy workspace means more risk of injury.  Keeping that in mind, it’s important to make sure you clean up your tools and your workspace – even the sawdust.

    Tip #3: Implementing safety precautions in your space.

    You can install a sprinkling system in the event of a fire, as well as posting an escape plan.  In addition, having an electrical inspection is another route you can take to make sure everything is up to code and grounded.  Even storing finishes in a fire vault or separate area is another good way to knock down your insurance costs. 

    Frequently Asked Questions

    Who does Woodworker's Business Insurance cover?

    We cover many types of woodworking professionals including (but not necessarily limited to):

    • Cabinet makers
    • Bench carpenters
    • Furniture finishers
    • Wood sawing machine operators
    • Wood sawing machine setters and tenders

    If I get injured while I'm working will I be covered by insurance?

    More likely than not, yes.  Your coverage is dependent on the type of Health Insurance policy you have.  If you want to learn about whether you’re covered or not check out our Health Insurance policy page here:

    Will I still be covered if a customer gifts my furniture to their friend and it breaks?

    Yes.  Even though the item was gifted, you would still covered under Commercial General Liability Insurance.

    If I do woodworking as a hobby do I still need to purchase insurance?

    This is really up to you.  Of course, coming from the eyes of an insurance company, we’ll always recommend that you purchase insurance.  If you do woodworking as a hobby and not a full-time job, it wouldn’t be necessary for you to purchase BOP Insurance, or any of the business insurance related policies.  Instead, we recommend looking into Professional Liability Insurance, which covers you as an individual worker.

    Will I still be covered by Woodworker's Insurance if my shop is run out of my home?

    Woodworker’s Insurance only covers you if you run a shop out of  a rented or paid-for facility.  However, if you run your business out of your home you may want to make a note of this in your Home Owner’s Insurance policy.  It’s here that you will be able to be covered for any incidents that go wrong.

    Do we insure people with many claims?

    Yes! We have select carriers for people who have many claims or a bad record.

    What payment methods do we accept?

    Payments through a mortgage, direct billing through mail, EFT (Bank Account), debit and credit cards.

    How can I file a claim?

     We strongly recommend calling us before the insurance carrier directly about a claim. You may not want to file a claim depending on your insurance plan. However, we will assist you in filing a claim the best way to make sure you take the least amount of damage possible to your insurance score. After talking with us, you can call the insurance carrier or let us call them for you.


    If you can’t find your answer here, please don’t hesitate to ask a representative through our messaging system or email.