From using various tools to cut, shape and install wood to lugging heavy materials to and from site, carpenters’ everyday activities bring a lot of risk.
These risks can affect many people, from the suppliers who get the materials to the clients who want the job done right and the employees who do the work.
While the consequences can be dire for these third parties, it is the small business owner that could be liable if something goes wrong.
A claim against a carpentry business could be disastrous, both financially and reputationally, and it sometimes can be enough to put you out of business for good.
Carpenters insurance is designed to protect your carpentry business in these situations, providing a financial safeguard in case things go south.
This article will explain some of the top insurance products for carpenters so you can reduce your risk exposure and keep woodworking for years to come.
Public Liability insurance*
Often required by building sites and some clients, Public Liability insurance is a critical type of insurance for carpenters.
It is designed to cover the legal fees and compensation costs if a third party claims against you for injury or property damage resulting from your negligent business activities.
Whether you damage your clients’ priceless table or a supplier falls over some ill-placed tools, Public Liability insurance could be what saves your carpentry business.
Portable Equipment cover*
As a carpenter, your equipment is sacred (and expensive). You may want to consider protecting your tools if they’re damaged or stolen.
Also known as General Property insurance, Portal Equipment insurance covers you for loss and damage to items of portable equipment associated with your business. These items of stock and your carpentry tools.
What’s typically covered under a Portable Equipment policy includes loss or damage caused by accident, fire, storm, water, explosion, impact or malicious damage and even the collision of a conveying vehicle.
It also covers you for theft following forcible and violent entry to locked vehicles or locked buildings and if the equipment was securely locked to a vehicle.
Business Insurance* is a package designed to protect your carpentry business’ contents, stock, tools and commercial premises if it is impacted by an insured event such as a fire, storm, theft or even accidental damage.
A Business Insurance pack is made up of different cover options that you can select to suit your business. It can include portable equipment and public liability (as discussed above), but you also can add a variety of other insurance options, building and contents, theft, tax audit, employment practices and statutory liability risks.
Personal Accident and Illness insurance*
If your business relies on your hard work, what would you do if you suffered an injury or fell sick?
You’ve got plenty of bills to pay, and you could be out for weeks or even months without an income.
Personal Accident and Illness insurance is designed for these situations, providing different levels of cover for loss of income, permanent disablement and even death if you can’t work because of injury or illness – even if it occurs outside your work.
This means you can keep things ticking along without having to stress about money rolling in.
Here is a real example of a Personal Accident and Illness insurance claim in action, helping out an Aussie carpenter:
The 34-year-old carpenter suffered a bulge to his lower back whilst lifting a ladder in 2019**.
The doctor deemed the injury was chronic in nature. However, the carpenter said that he had only gone to the physio and chiro for muscular strains and the ‘general upkeep’ of his back over the years.
The insurer investigated the claim and medical records confirmed that the back consultations were related to a strain or other parts of his back. The claim was accepted, and the carpenter received weekly payments of $1,200 for 12 weeks.
Professional Indemnity insurance*
Do your clients rely on your expert opinion when you’re on the job? Your professional advice could lead to potential claims if you make an error or you’ve forgotten to mention something.
If you do give out your pearls of carpentry wisdom on the daily you may want to consider Professional Indemnity insurance* to protect your carpentry business in case things go wrong.
Your Professional Indemnity insurance will meet the associated compensation payable to a third party together with your defence costs, which can include legal costs, investigator costs and expert fees.
Get protected today
With so many risks to mitigate, it is crucial for carpenters to consider protecting themselves and their small businesses with carpenters insurance. For many time-poor tradies, sorting out your business insurance sounds like a whole lot of work. Luckily, through the online service, BizCover, you can compare quotes online and get covered in minutes.
This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. © 2022 BizCover Pty Limited, Public Liability Australia is a business name of BizCover Pty Ltd (ABN 68 127 707 975; AFSL 501769)
** The provision of the claims examples are for illustrative purposes only and should not be seen as an indication as to how any potential claim will be assessed or accepted. Coverage for claims on the policy will be determined by the insurer, not Public Liability Australia.