You're Framing a Custom Addition. The GC Calls — The Homeowner Says the Header Is Wrong.

For a solo carpenter, GL-only starts around $800–$2,000/year. A small crew of 2–5 doing a full package (GL + workers' comp + commercial auto + tools floater) typically runs $2,500–$9,000/year. The biggest variable is workers' comp — rough carpenters under Class 5403 pay more than finish carpenters under 5645. Revenue, prior claims history, and types of work (structural vs. finish) also affect the rate significantly. We'll give you an exact number based on your business.

Partially — and this is one of the most important distinctions in carpentry insurance. Standard GL does not cover the cost of redoing your own defective work. But if your faulty work causes damage to something else — a wrong header damages the wall assembly, a poorly hung door causes water intrusion that destroys the flooring — that consequential damage may be covered under completed operations. The key is selecting a carrier whose policy form has minimal faulty workmanship sub-limits. We compare policy language across carriers specifically for this issue.

Code 5403 covers rough carpentry — framing, structural work, additions, decks, sheathing. The work involves higher fall and injury risk, so rates are higher. Code 5645 covers residential carpentry — interior finish work, trim, cabinetry, doors, windows. Lower injury risk means lower rates. If your crew does both, separate payroll tracking between the two types of work is critical. Without clean records, the carrier auditor will assign everything to 5403. We set up the payroll segregation structure before your first day of coverage.

Not by GL. GL covers property damage you cause to other people — not your own equipment. You need an inland marine tools floater. This covers theft, damage, and loss of your tools whether they're at the job site, in your truck, or in your shop. For a typical carpentry operation with $15,000–$40,000 in tools, the floater runs $400–$2,000/year. One table saw theft (often $2,500–$5,000 replacement cost) pays for multiple years of premium.

NJ doesn't have a statewide "carpentry license," but all residential home improvement work requires HIC registration with the Division of Consumer Affairs. Structural work — additions, load-bearing changes, decks — requires building permits from the local municipality, and unpermitted structural work can void your completed operations coverage at claim time. Commercial work may require additional contractor registrations depending on the municipality and scope. We verify that your coverage meets the actual regulatory requirements before binding.

You need a current certificate of insurance from every sub showing their own GL and workers' comp. If a sub causes damage and isn't insured, the claim can flow to your GL. If a sub is injured and doesn't have workers' comp, their wages can be added to your workers' comp audit at your highest class code rate. We provide a simple COI collection process so you're protected before any sub picks up a tool on your jobs.

Builders risk covers a project while it's under construction — materials on site, work in progress, and the structure itself. It's usually purchased by the GC or property owner for larger projects. As a carpentry subcontractor, you typically don't purchase builders risk — but you should verify that the GC or owner has it in place before you start, and that your tools floater covers your own equipment separately. On projects where you're acting as the prime contractor, builders risk becomes your responsibility to arrange.