Carpentry work comes in all forms and sizes. A job may be small and detailed, done in a small studio, completed by an artisan carpenter. A carpenter may primarily do interior work, working on stairs, window and door frames or built-in cabinets and shelving. Alternatively, a carpenter may principally do exterior work, perhaps framing houses or other structures. Carpentry businesses may have a single employee, working out of his or her home, or have many employees working out of a central office. Obviously, not all carpenters should have the same insurance package. It’s important to have a broker who can individually source customized commercial insurance specifically for carpentry businesses. 

What Kind of Insurance is the Right Kind of Insurance?

When it comes to the construction industry, there are many kinds of insurance products available, each one tailored to a particular need. A good insurance broker should be able to sit down with a potential client and do a comprehensive risk analysis, taking into account the customer’s individual business requirements. The broker should be able to look at the variables in a particular business and make recommendations based on the number of staff, kind of equipment and working conditions, and the particular risks that come with working as a carpenter. Some of those risks may include moving and storing lumber, fire hazards, working with saws, or risks due to weather conditions.

Some insurance policies that a carpenter should consider are:

·       Personal Property Business Insurance;

·       Contractor’s Equipment Insurance: including loss, theft, breakdown, short term equipment rentals;

·       Accident Insurance;

·       Loss of revenue;

·       Building material replacement;

·       General Liability Insurance;

·       Goods-in-Transit Insurance;

·       Vehicle Insurance.

In Ontario, anyone working as a contractor or subcontractor must also register with the Workplace Safety and Insurance Board (WSIB) for mandatory insurance coverage.

Finding a Broker Who Knows the Commercial Insurance Industry

A good broker should be up-to-date on legal issues, legislation and the latest insurance products that can be obtained from a variety of reputable insurance companies. Look for a broker who is designated as a Chartered Insurance Professional (CIP). This certification by the Insurance Institute of Canada designates national standards in knowledge and skills, while adhering to a code of ethics. Brokers are not allowed to solicit customers by offering any kind of promotional incentives: be wary of any brokerage that does so.

Be prepared to ask questions and get well explained answers. A good commercial broker should be able to break down the insurance possibilities into "must have” and "would be wise to have” categories, helping their clients prioritize according to budget. The broker should understand the challenges and risks of your particular business and be able to suggest ways to reduce risks, thereby reducing costs.

Ultimately, when looking for customized commercial insurance coverage for carpentry businesses, look for a broker who inspires trust and is interested in a long term relationship. At the end of the day, the client should be able to say with confidence, "If the worst happens, I’ll still be OK. My family, my employees and my business will be protected.”