What Is Carpenter Insurance and What Does It Cover?
With a projected growth of 20% annually for the next 7 years, carpentry is without a doubt the fastest growing industry in America. Every new day, there's a growing demand for qualified carpenters not only in America but also the world over. Whether you specialize in making home and office furniture or you work as a building contractor, the rising demand for your services also means a rise in your risk – and this is where carpenters insurance comes in handy.
Carpenters insurance is typically a package policy. In other words, the client can choose what to include in the policy they are taking depending on the unique needs and requirements of their business environment. For instance, some carpenters do all their work at their office premises, and they, therefore, do not need to worry about their tools and equipment damaging the property of their clients. Such carpenters would do just fine with a public liability cover. However, carpenters that do their work on the client's site must ensure they have a policy that covers all possible third-party claims.
What does carpenter insurance cover?
Public liability is the most important facet in carpenter insurance. It ensures that you are covered when, or if, a third party alleges that you are to blame for a loss they might have suffered as a result of your work. The loss incurred could include damage to property, or, it could also be related to some form of personal injury. The insurance also takes care of any compensation that might be awarded in court against you, as well as the related legal costs of a lawsuit.
The public liability insurance is typically bundled with a products liability cover. This usually covers any compensation claims that might be made against you, but, unlike the public liability that deals with claims arising from what you did, this cover deals with claims resulting from a defect in a product you might have used or supplied to a customer.
Carpenters insurance only covers claims for personal injury or damage of property resulting from what you did or did not do. This means that some financial loss issues might not be compensated. If you need to include that in your cover, make sure to get a policy that includes a financial loss clause. The clause will cover any claims that are made against you or your company by an individual who has only suffered an economic loss.
Professional indemnity covers claims that allege that a client or third party suffered a loss as a result of professional negligence. Although this is not a must-have clause in your insurance, it is an excellent addition to your package - just to ensure you have covered all the bases. This can come in handy for carpenters who design as well as manufacture furniture as they may get sued for defective designs or inaccurate specifications.
For the carpenters that work solo, it’s a good idea to get personal accident and sickness cover too. This covers them in case they fall sick and are unable to work, or if they are in an accident. With personal accident and sickness insurance, you can recover in peace without having to worry about medical bills.