Insurance for a carpenter starts from around £84 for public liability cover only for a one-person operation, such as a sole trader. But if you want higher limits, additional covers, or you run a more significant business, then the cost of insurance for a carpenter business will be higher. Below we outline how insurance costs for a carpenter can rise.
Cost of carpenter public liability insurance
Public liability insurance for a carpenter starts from around £84 for £2 million of cover. £5M of public liability cover would typically cost closer to £100. Interestingly, you can more than double the cover (£2M to £5M) for only a 25% increase in price (read more in the analysis by NimbleFins here).
Adding other coverages or higher limits will raise your overall insurance costs. For example, the sample carpenter profile run by NimbleFins would pay £139 for £2N public liability, and £2,000 of tools cover, assuming the tools were not left in a van overnight. If tools are kept in a van overnight, insurance costs rose by around £40 a year. A carpenter wanting to insure £10,000 of tools that are left in a van overnight would be looking at carpenter insurance costs closer to £450. And none of these examples include personal injury cover or professional indemnity.
Personal accident coverage added around £80 a year, and if the carpenter’s business is booming and they hire any employees, insurance costs rise further. For example, NimbleFins found that carpenter insurance covering £2M public liability, £2K tools, personal accident, and just one employee would cost over £600 annually. And the more employees, the higher the insurance rises. Adding another 4 employees raised the insurance cost by around £800 for around £200 per employee.
Public liability insurance for carpenters
Public liability insurance for carpenters protects against situations where a personal injury or property damage is linked to your business. If a client or other third party is injured or their property damaged, and they blame your business, they can bring legal action against you. Public liability insurance covers both legal defence costs and compensation you’re bound to pay as a result of your business’s negligence.
For example, consider a situation where you leave a toolbox near the top of the stairs while you’re moving a piece of furniture. Your client walks by, perhaps they’re distracted by your efforts, and they don’t see the toolbox. The client trips over it and falls down the stairs, incurring serious injuries. They sue you, claiming you were negligent in having left the toolbox in that location.
Even if you hadn’t been negligent and a claim was frivolous (e.g., a client blames you for a broken banister that had been loose and showing signs of wear for a long time), a public liability insurance policy could assist with the costs to defend against the claim.
Tools insurance for carpenters
Since carpenters and joiners cannot ply their trade without tools, tools insurance should be considered. Tools and equipment insurance will protect against theft or loss due to covered events like fires or floods. Insurance won’t cover defects fault as these would be the responsibility of the manufacturer. Insurance also won’t protect against wear and tear or simply misplacing your tools.
Tools insurance can cost well under £100 a year to protect tools worth £2,000 in total, with prices rising for tools worth more. When you combine your tools cover with other types of insurance like public liability, you may get a discount on your premium.
To save money on tools insurance, don’t leave them locked in a vehicle at night. Insurers ask where you keep them overnight when they’re calculating your quote. If you’re able to store your tools in a secure, locked building at night instead of in a vehicle, you can save hundreds of pounds on your carpenter insurance.
Take careful stock of the tools you own and figure out their replacement costs. By doing so, you’ll get an idea of how much insurance you need. Plus, your insurer might ask for proof of the tools you owned that were damaged or stolen. Therefore, keep a record of your tools, including photos, receipts, and replacement costs, in case you ever need to claim. And if someone steals your tools without any records, you have only your word, which may not be enough for the insurer.
Personal accident insurance for carpenters
Since carpenters deal with dangerous tools and equipment, they should consider buying personal accident cover. If you’re an employee, your employer might have arranged this for you – ask to be sure. But if you’re self-employed, you’ll need to buy personal accident cover.
Personal accident cover can provide money to help replace lost income while you’re off work recovering from a work-related accident. Or in the case of a more serious incident that has a long-term impact, some policies pay out a lump sum amount to you or your family.