Do Subcontractors Need a Carpenters Insurance Policy?

Subcontracting agreements create complex situations with regard to insurance. Some companies who hire subcontractors extend insurance coverage to the subs they work with, but not all companies do. Additionally, those that do don’t always offer the same amount of coverage as subcontractors themselves want.

To make sure they’re adequately insured against the risks they face, subcontractors should speak with an insurance agent who specializes in carpenters insurance. A specialized agent will be familiar with the nuances of subcontracting work, and they’ll know how to check a company’s policy for coverage. If additional coverage is needed, an agent can also help with purchasing the other protections that a subcontractor wants.

What Protections Do Carpenters Insurance Policies Make Available?

Many of the protections that can come with carpenters policies guard against either property or liability risks, and most protections can be categorized accordingly.

A few liability protections that a carpenters policy might make available include:

• Commercial General Liability Coverage, which usually protects against common accidents, as well as libel and slander allegations
• Errors and Omissions (E&O) Coverage, which usually protects against issues that arise from professional mistakes and errors
• Commercial Umbrella Coverage, which usually protects against particularly expensive lawsuits by offering a second level of coverage

Some of the property protections that a policy may come with are:

• Commercial Building Coverage, which carpenters who own a workshop building or storefront might need
• Commercial Personal Property Coverage, which might cover equipment, tools and supplies when they’re at a carpenters’ main location
• Inland Marine Coverage, which might cover equipment, tools and supplies when they’re being moved between locations
• Builders Risk Coverage, which might cover equipment, tools and supplies when they’re at a worksite
• Business Income Coverage, which might cover revenue losses that follow a natural disaster or other incident

Carpentry professionals who have business-owned vehicles generally also need commercial auto insurance, which can be added to many carpenters policies.