Whether you are an in-house carpenter in the Ontario area that builds items in a shop or you are a remodeling carpenter that travels from job to job, you are going to need some form of insurance. That being said, when most carpenters start talking about carpenter insurance they become confused about what it covers and what it will cost. It really is easy to understand why. Most of the reason for the confusion is because carpenters insurance is not just one policy. Carpenters insurance is a generic term for a variety of policies that have been bundled together. In order to really understand what is covered you need to break down each individual policy.
Carpenters Liability Insurance
Carpenters liability insurance is right at the core of your protection as a carpenter. It might be one of the most basic policies out there, but it is imperative to ensuring your business’s protection. This is a type of policy that covers you and your employees in the event that you cause property damage of bodily harm. This is an extremely important policy for the traveling carpenter that is constantly working on different job sites. However, it is equally as important for the carpenter that works out of a shop. This type of policy will offer protection against slips and falls. If a customer is damaged in your place of business, this policy will offer the protection that you need.
It also offers protection against lawsuits. Whether the suit is scrupulous or not, this policy will cover court costs, deposition fees, and lawyer expenses. Another great thing about this policy is that it not only protects your employees, but it protects subcontractors that you have to bring in as well.
Workers Compensation Insurance
If you plan on making the most of the carpentry industry in the Ontario area, you are going to need a dedicated workforce. You simply won’t be able to handle all the work on your own. While employees are a great way to expand and branch out, it does come with some major responsibilities. You are going to be completely responsible for these employees and their health while they are on your time. This is why the province of Ontario requires any business that operates with employees to purchase workers compensation claims for their employees.
This type of coverage is a no-fault policy. What this means is that it doesn’t matter whose fault the injury is, the employee will be medically protected. The policy will cover medical expenses, wages that are lost during the injury, and death and disability claims. It should be noted that Ontario uses a modified version of the workers compensation system, which is refereed to as the incurred loss retrospective rating plan. You can read more about this plan by going to WSIB website by clicking here and here. This means that businesses have to pay a non-negotiable premium, but are given rebates based on the claims made throughout the year.
Errors And Omissions Insurance
Errors and omission insurance, also sometimes called professional liability insurance, can offer protection against the risks that you and your employees are exposed to on a daily basis. This is a type of policy was specifically designed to protect the customer in the event that your work or advice causes them financial loses. For instance, if you build a porch for a customer and didn’t support it properly and it falls, which results in damage to the home, this coverage will kick in and over the protection that you need. It will pay to have the damages repaired.
It can also protect you in the event of frivolous claims. For instance, if the customer claims that you didn’t use the right wood or color on the porch, the insurance policy will pay to rectify the situation.