How Much Does Carpenter Insurance Cost? 2025 Rates

In 2025, U.S. carpenters can expect to pay $960 annually for comprehensive business insurance, averaging $80 per month. The primary cost drivers are your location, type of work you do, coverage limits, business size, experience level, and tools & equipment value.

How Much Does Carpenter Insurance Cost?

The average carpenter in the U.S. pays $960 per year for a full business insurance package. That breaks down to roughly $80 per month. However, this is just a ballpark range and actual business insurance costs can vary widely depending on your specific situation.

Every carpentry business comes with its own set of risks, so insurance costs aren’t the same for everyone.

A carpenter doing small home projects will likely pay much less than a larger company handling big construction jobs with multiple employees and expensive equipment.

Several factors can affect your insurance premium, like the type of carpentry work you do, the tools and materials you use, and where your business is located.

Carpenters working on high-risk sites or in areas with more theft or accidents may pay more for liability and equipment coverage.

Likewise, a carpenter who mostly works indoors may pay less than a framing contractor using heavy-duty tools and working at heights, since the latter carries more risk of injury or damage.

Understanding these variables can help you better estimate your insurance needs and prepare for the real costs of protecting your carpenter business.

Average Carpenter Insurance Costs For Coverage Types

When it comes to protecting your carpenter business, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan.

Here’s a closer look at the major coverages most carpenters need.

• General liability insurance: $80 per month
• Business owner’s policy: $112 per month
• Workers’ compensation insurance: $279 per month
• Commercial auto insurance: $155 per month
• Commercial umbrella insurance: $85 per month
• Builder’s risk insurance: $82 per month
• Contractor’s tools and equipment: $17 per month

Contractor’s Tools And Equipment

Carpenters depend on tools every day, which is why many choose to insure the equipment they bring to job sites or store in work vehicles. Contractor tools and equipment insurance helps pay for replacements or repairs if items are stolen, damaged, or lost while in transit or on site.

Hand tools, cordless drills, nail guns, sanders, routers, planers, ladders, and portable saws are among the common items covered. The value of your equipment and the type of work you perform will influence what you pay for coverage.

The average cost of contractor tools and equipment insurance for carpenters is around $17 per month.

Here is a sample of average annual premiums across ten states:

Note: Estimates are based on market-average annual premiums for contractor tools and equipment coverage for carpenter operations; actual premiums will vary with equipment value, business size, location, deductible choice, and underwriting factors.

General Liability Insurance

General liability insurance is one of the most common coverages for carpenters because the work often involves entering client homes or job sites where property damage or injuries can occur.

If you are installing trim, building shelving, framing, or working on cabinetry and accidentally damage a surface or a visitor trips over your work materials, this coverage may help pay for repairs, medical costs, and legal expenses.

The average cost of general liability insurance for carpenters is about $80 per month, with common policy limits of $1 million per occurrence and $2 million aggregate.

Here are example annual averages from different states:

Note: Estimates are approximate annual general liability premiums for carpenter operations based on market-average rates; actual premiums will vary with business size, scope of work, claims history, location, and coverage limits.

Builder’s Risk Insurance

Carpenters who work on new construction, remodels, or structural projects often need builder’s risk insurance. This coverage protects building materials, unfinished work, and the structure itself during construction in case of fire, weather damage, theft, or vandalism.

The cost is usually tied to the project value rather than labor or payroll. Larger projects, longer build times, and specialty installations will typically increase premiums.

The average cost of builder’s risk insurance for carpenters is about $82 per month.

Average annual premiums across several states include:

Note: Estimates reflect typical annual builder’s risk premiums for carpenter operations based on market-average agency pricing; actual premiums will vary with project value, duration, location, materials, and coverage options.

Business Owner’s Policy (BOP)

Many carpenters choose a Business Owner’s Policy because it combines general liability with commercial property coverage in a single policy. This can insure tools stored at a workshop, lumber, finished products, office space, computers, or displays from theft, fire, or other covered damage.

A BOP is especially useful for carpenters who operate from a shop or warehouse rather than working exclusively onsite.

The average cost of a BOP for carpenters is about $112 per month.

Annual averages from ten states include:

Note: Estimates reflect typical annual BOP premiums for carpenter operations across different states; actual premiums will vary with location, revenue, property value, coverage limits, and underwriting factors.

Commercial Auto Insurance

Carpenters who travel between sites or transport tools, trailers, or materials often need commercial auto insurance. This protects work trucks, vans, or utility vehicles if they are damaged, stolen, or involved in an accident while used for business purposes.

Premiums depend on vehicle type, usage frequency, driver records, and coverage level.

The average cost of commercial auto insurance for carpenters is about $155 per month.

Average premiums by state include:

Note: Estimates reflect typical annual commercial auto premiums for carpenter operations based on market-average agency pricing; actual premiums will vary with fleet size, vehicle use, driving records, coverage limits, and underwriting factors.

Workers’ Compensation Insurance

Workers’ compensation insurance helps pay for medical care, wage replacement, and recovery support if an employee is injured while working. Since carpentry involves cutting tools, ladders, sawdust exposure, and physical labor, insurers often consider it a higher-risk trade.

The average cost of workers’ compensation for carpenters is around $279 per month.

Average annual premiums include:

Note: Estimates represent typical annual workers’ compensation premiums for carpenter operations in each state; actual premiums will vary with payroll size, employee classifications, safety programs, claims history, and state-specific rules.

Commercial Umbrella Insurance

Carpenters who take on large contracts or commercial builds sometimes purchase commercial umbrella insurance to increase the limits of their underlying policies. This can provide an additional safety net if a claim exceeds the limits of general liability, auto, or other coverage.

The average cost of commercial umbrella insurance for carpenters is about $85 per month.

Sample averages from different states:

Note: Estimates reflect typical annual commercial umbrella premiums for carpenter operations based on market-average pricing; actual premiums will vary with liability limits, underlying coverage, claims history, business size, and underwriting factors.

Carpenter Business Insurance Costs By Provider

Carpenter business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: Estimates are based on industry average annual premiums; actual premiums will vary by location, revenue, services, payroll, claims history, and coverage limits.

What Factors Impact Your Carpenter Insurance Costs?

Carpenter insurance premiums are carefully calculated by underwriters based on your business’s risk profile. Factors like the types of projects you work on, where you operate, and your past claims all affect how much you’ll pay for insurance.

Type Of Carpentry Work You Do

The kind of carpentry work you do can change how much your insurance costs. For example, if you mainly do small repair jobs, your insurance might be cheaper. But if you work on big construction sites or use heavy tools, your risk is higher, and your premiums may be more.

Size Of Your Carpenter Business

How many people work for you matters. A single carpenter usually pays less for insurance than a company with several employees because there are fewer chances for accidents and claims.

Value Of Your Tools And Equipment

If you have expensive tools and machines, your insurance will cost more. This is because the insurance has to cover the cost of fixing or replacing them if they get lost, stolen, or damaged.

Experience

The years of experience your business has can directly impact premiums; the longer you’ve had your carpentry business (and the longer you’ve gone without claims or safety violations) the better it looks.

Location of Your Carpentry Business

Where your business operates can affect your insurance rates. Some areas might have higher risks of theft, accidents, or natural disasters, so insurance may cost more there compared to safer locations.

Coverage Limits And Options

The amount of coverage you choose also impacts the price. Higher limits or extra coverages (like protection for tools, vehicles, or workers) usually mean paying more for insurance.