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Trim Carpenter

5 types of Insurance Coverage every Trim Carpenter should strongly consider

A Trim Carpenter typically performs only interior work such as cabinet installation and interior trim for construction projects. There are many other types of carpenters who perform exterior work only or both. Because of the differences in the nature of the work between these types of carpenters, the risks they face are also different. Interior carpentry normally consists of either rough or finish work. Rough work involves framing windows and doors, laying floor joists and subfloors, stairways and more. This type of carpentry can also include: hanging doors, installing baseboards, installing the molding around doors and windows, and making or installing cabinets and shelving. There are many other types of custom builds the carpenter might partake in. All of this type of work can lead to bodily injury claims for the carpenter or their employees. It can also lead to risk if the windows or doors are damaged during installation. With these different risks a trim carpenter faces, comes a need for many different types of insurance coverage. Here are five types of insurance coverage every Trim Carpenter should strongly consider purchasing.

Trim Carpenter

Recommended Insurance Programs for Carpenters

General Liability Insurance
Commercial Property Coverage
Inland Marine Insurance
Commercial Auto
Workers Compensation Insurance

Other coverages to consider for the various types of Carpentry:
Business Personal Property, Employee Dishonesty, Contractors’ Equipment and Tool Floater (Inland Marine), Umbrella Liability Coverage, Business Income with Extra Expense, Builders Risk, Goods in Transit and Installation Floater.

Tools for a Carpenter

General Liability Insurance for a Carpenter

General liability exposures at a trim carpenters shop are normally somewhat limited. These limitations are due to the lack of public access to the carpenters property. There should be policies in place because risks like fires from woodworking and/or lumber storage can affect neighboring businesses or homes. Talking about all the different elements of your business with your experienced insurance agent can help you prevent severe or frequent claims.

Carpenters Commercial Property Coverage

Carpenters face commercial property exposures at their location, but those exposures are limited to the office area and storage of materials, equipment and vehicles. If the risks will be different depending upon if the business owns the building or rents.

Inland Marine Insurance for a Carpenter

Inland marine insurance coverage is designed to protect businesses that have specialized equipment or equipment that is frequently in transit. This equipment includes owned or rented tools. The tools may include tables saws, scaffolding, building materials and materials being transported to and from the job-site. These tools and equipment are heavy but less likely to be damaged during transport. Transporting woodwork done at the carpenter’s shop increases the exposure because these items are more susceptible to damage from shifting, improper loading or inadequate tie-down. Inland marine insurance coverage is needed for nearly all carpentry businesses.

Carpenters Commercial Auto Coverage

Auto liability exposures are limited, for the most part. This limited exposure is limited unless lumber and pre-made items are frequently transported by the carpenter. The hazards of transport include failure to secure the load properly and equipment failure. Paying attention to your employees age, training, experience and driving records can limit these risks. Also, the condition and maintenance of the vehicles are important considerations. Those maintenance records should be documented in order for your insurance agent to use this record to negotiate better rates on insurance premium. Companies who allow employees to drive their personal vehicles for business purposes should purchase a separate hired and non-owned auto policy.

Workers Compensation Insurance for a Carpenter

Workers comp liability varies based on the size and nature of the job the carpenter is working on. Work with hand tools and sharp objects can result in cuts, piercings and accidental amputation. Lifting injuries such as hernias, strains, sprains and back injuries may occur. Minor injuries may be frequent even when the severity exposure is controlled. When work is done on ladders and scaffolds, there is a potential for severe injury or death from falling, being struck by falling objects or adverse weather conditions. Addressing all of these risks with proper safety programs and equipment can help you reduce the frequency and severity of the claims your business has. FOr this reason, it is extremely important to train all employees in the proper use of basic safety equipment.

Carpentry Shop

Common Carpenter Liability Classification Codes

SIC Business Insurance Codes:

1751: Carpentry Work
1521: Residential Construction

NAICS Liability Classifications:

238350: Finish Carpentry Contractors
236118: Residential Remodelers
238330: Flooring Contractors
238390: Other Building Finishing Contractors

Business ISO General Liability:

91340: Carpentry—Construction of Residential Homes
91341: Interior Carpenter
91342: Carpentry—Not Classified Elsewhere
91343: Carpentry—Shop Only

Common Workers Compensation Class Codes:

5437: Carpentry—Cabinets and Interior Trim
5403: Carpenters—Not Classified Elsewhere
2802: Carpentry—Shop Only
5432: California Class—Carpentry
5645: Carpentry—Residential Construction

Drone Technology

How Drone Technology impacts the Insurance Industry.

Many new technologies impact many different industries on a daily basis. As long as there has been commerce taking place, there have been new and better technologies that have come along to shake up things for most industries. No matter if it was Benjamin Franklin discovering electricity in the 1700’s, Alexander Graham Bell inventing the telephone in the 1800’s, the Wright brothers inventing the airplane in the 1900’s or Mark Zuckerberg inventing Facebook new technology has been developed longer than the United States of America has been a country. Companies that adapt to technological change are the companies that succeed in the long term. Today, many technologies are changing our lives at a dramatic pace. None more apparent than drone technology.

Drone technology is advancing at a very rapid pace. As the technology advances the capability of the drone is growing and the price to enter the market place is dropping dramatically. Because of this people are buying up drones at an enormous pace. What far too many of these drone owners do not realize at this time is the type and amount of risk they are taking by operating a drone. This applies whether the drone is being used for commercial or personal use and whether the person is on their own property or on the property of a third party. Here are a few ways that drones will impact the insurance industry now and in the future.

What industries are using drones to do business?

Construction Industry – In the Construction Industry business owners can use drones to analyze a property in ways that were not imaginable just a decade ago. They also can aide construction companies in the repair of facilities after an accident or natural disaster.

Insurance Industry – The Insurance Industry is using the technology to examine properties after a natural disaster to get a jump start on which properties need the most examination and at what part of the property. In the future drone technology may be able to aide in the prevention of fraudulent insurance claims by taking pictures of insurable assets periodically throughout the policy period.

Real Estate – Real Estate agencies are able to get an in-depth look a the properties they are working with in new ways. They can use this technology to give their clients an even better idea of the property they are purchasing or selling.

TV Media – Drones will give the television industry the ability to get to even more places when covering live footage or it can allow a camera to get to a new place that was not possible before. Laws and legislation over the next few years will determine how much this technology will be allowed in the media.

Search and Rescue – Search and Rescue groups can use drones in some scenarios instead of helicopters. This will put the operator of the helicopter in danger less often and will allow the search and rescue teams to get to new places that a helicopter cannot access.

Beneficial impacts of the drone industry on insurance.

Drones and aerial photography can speed up the processing time for claims. With the use of drones the time to process a claim may move from a few weeks to a few days to eventually a few hours. Because of this quick turn around in processing, companies in the insurance industry will be able to hire less employees or it can free up more employees to service customers in different ways. This will increase the level of service they are able to provide and lower the price they are forced to charge customers for coverage.

Fraud Prevention is another beneficial part of the use of drone technology on the insurance industry. The main way drones can aide in preventing fraud is by allowing insurance carriers to more easily monitor what a property looks like throughout the period of the policy. If they can fly a drone out to observe your property once a month or even once a quarter it is more likely to be able to prevent people from filing fraudulent claims after a natural disaster like a hurricane or a tornado. This is a prime time for property owners to claim damage to their property was caused by the natural disaster when in reality the damage occurred much sooner and was not a covered loss.

Challenges drones present for the Insurance Industry

Start-ups will pop up that challenge the current business model. A few businesses have already poppped up to serve drone users in ways the traditional insurance industry is not able or prepared to.

Verfily and Dart Drones are two such companies that have already formed to fill a void in the drone market. Verifly is a that offers drone users the opportunity to buy insurance coverage for a small amount of time when they will be using the technology. When the drone is not in use they do not have to pay for coverage of the product. This is especially beneficial to businesses who want to use the technology, but may use the drone only a few times a month or even only a few times a year. Dart Drones is a business that sprung up because there currently is no industry standardized license for operating a drone. This business offers classes and certifications on the proper use of a drone. This will allow a business owner to show his insurance company the people using the drones are trained professionals and it is a way for the employee to show they are prepared to operate the drone for the needs of the business.

Like many things in life, every problem presents an opportunity. This is very much the case in the drone industry. Successful insurance industries in the future will be the companies that can harness technologies like drones for their benefit and use the technology to gain a new share of the market they did not have previously. The companies who are the quickest to adopt this technology and offer coverage for it users will position themselves to be the leaders in this potentially high growth portion of the insurance sector.

Inland Marine Insurance Policy

10 businesses that can benefit from an Inland Marine Insurance Policy

Landscaping

Lawn care and Landscaping companies use trailers to transport the machines they use to do their work. A commercial auto insurance policy will cover your vehicle, but not the trailer and any equipment being transported. An Inland Marine Policy will cover the specialized equipment landscaping companies transport to the facilities they work.

Real Estate Agencies

Much of the work that real estate agents do is over the phone, via email or at a remote location. If the business provides the agents with their own mobile device or laptops than those devices are at risk without an inland marine insurance policy. There may be other types of equipment agents use for promotional purposes that are covered under the policy as well.

Construction Companies

Construction companies are very diverse in the scope and extent to which they work. Some companies are a handyman with one or two employees who may have a minimal amount of tools. Other construction companies may have as many as 20 employees who each have their own set of tools, backhoes, tractors, paving equipment and generators just to name a few. No matter how many tools a construction business does have, without an inland marine insurance policy those tools are at risk.

IT Professionals

Information Technology Professionals tend to work with and on technology products. Primarily, personal computers and other types of computer products. Frequently, these companies are having to make house calls, either to customers’ residence or their business, where they are working with the tools these people use to do their work and live their lives. Many of these customers have a very basic knowledge of how computers and their networks actually work. Helping these people fix their products without putting yourself or your business at risk is a slippery slope. Securing an inland marine insurance policy is a must for this type of business.

Electricians

Electricians, like many businesses, do a majority of their work at a remote site. Many random pieces of equipment are needed for electricians to do their jobs. And Inland Marine Insurance Policy can help Electricians protect themselves and their business from damage, theft or vandalism.

Musicians/Travelling Entertainers

Entertainers spend the majority of their time out on the road. With the onset of digital technology, record sales have plummeted over the past decade. For this reason, entertainers must make their living through the live performance. Musicians have an extremely large amount of equipment they carry with them everywhere they go. Failing to secure an inland marine policy can be the difference between replacing your gear after one missed gig or cancelling an entire tour because you do not have the cash flow to cover damaged or stolen equipment.

Engineers and Architects

Engineers and Architects tend to do a decent amount of their work out on location. There is usually a significant amount of equipment they carry with them to the job site and the equipment tends to be expensive. Unless they have an inland marine insurance policy the risk for losing this equipment falls on the business. Partnering with a trusted independent insurance agent can be beneficial for these businesses to determine just how much equipment they have, what the value of that equipment is and if they are willing to take the risk of that equipment being damaged or stolen.

Commercial and Residential Cleaning Companies

Cleaning companies have a lot of equipment they use on a daily basis. Some of the equipment can be extremely expensive. The risk for inland marine coverage is greatest for residential companies. This is because residential cleaning companies typically travel to two or more locations throughout the day. While the employees are driving from location to location the business is at risk. The business is also at risk while the employees are at the remote location doing the actual cleaning. Commercial cleaning companies on the other hand commonly travel to one site and clean one or a few facilities at the one location. The equipment is stored at the location and not transported to and fore.

Appraisers

Appraisers; like architects, electricians and engineers, travel to off-site locations frequently. While travelling to the location and while out performing work the equipment they use to do their job is at risk of being damaged or stolen. Depending upon the scope or your appraisal business this can be a significant risk. Consulting with a trusted insurance agent can help you determine how much risk your business faces and how much if any coverage you need.

Home Health Care Agencies

Home health care agencies perform all of their work at the location of their customer. This industry can be very high risk. It tends to have a larger than normal amount of claims and their severity can be severe. These risks typically are bodily injury from the employees lifting and transporting the sick or elderly patients. The equipment they use to do these jobs can be expensive and if not covered by an inland marine insurance policy the business is at risk for any damage to the equipment.

Let’s just Sub that out……

Risk mitigation standards to keep in mind when using Subcontractors:

The topic of subcontracting comes up in several scenarios when it comes to small businesses, especially contracting and construction. This topic can bring up many questions from a legal, tax, and insurance standpoint. I’ll leave the legal and tax part to your Attorney and CPA. Here we will discuss, from an insurance standpoint, how to protect yourself and your business.

Get info about CPA and Accountants Liability Insurance at www.myinsurancequestion.com

Subcontracting in the perspective of 1099’s vs W-2 employees is generally a very grey area with most contractors. It does not have to be. Here is why. Working with your independent insurance agent should allow you to determine if your employees truly are 1099 or traditional W2 employees. Many business owners think they have contractors, but to the letter of the law the workers are employees and require your business to cover them under a workers’ compensation policy. When it comes to General Contractors and those who have true subcontractors working for them, you still need to make sure you are protecting yourself.

Most business owners have chosen to utilize subcontractors for a combination of the following reasons: a specialized trade your business does not primarily do, the contractor is brought in for a specific job for a specific purpose, & this person or company you have “hired” is not an employee so you are not providing any typical employer benefits and it is your intent for them to cover their own business liabilities on their own in hopes of taking this off of your company. At least partially take this risk off of your company. When it comes to managing your risk, many business owners wonder, am I doing everything I can to mitigate these risks? There are many benefits of subcontracting work out, but if not done properly you are opening yourself and your business to a significant amount of liability. This liability could be costly, even detrimental to your business.

Here are a few basics requirements that you will want to make sure you verify with all of your subcontractors before they step onto your jobsite:

Confirm proof of Basic Insurance Coverages:

General Liability: (Common Limit Amount $1Million Per Occurrence/$2Million General Aggregate) This coverage varies from company to company, but the basic coverage is intended to protect from damages to 3^rd parties as a result of the business operations for the company being insured. So if your subcontractors work operations cause physical damage or bodily injury to someone (excluding employees). This policy is a basic protection to cover those types of damages. For most artisan subcontractors we typically recommend a minimum limit of $1 Million per occurrence with a $2 Million General Aggregate limit.

Workers Compensation: This coverage is intended to cover medical expenses and a portion of lost wages for injuries incurred on the job for employees working for the business. This in particular is commonly overlooked since many subs are owner only companies, however if that owner only company despite not being required by law to carry workers comp gets injured on your jobsite you could see some liability for that. Making sure they provide a certificate of insurance to protect yourself. (Please note: current insurance certificates also point out if any officer the company are excluded from coverage; if you have a sub that does not have employees and they are excluding themselves then their coverage might not be sufficient to protect you)

Commercial Auto: (Common Limit amount ($1 Million) With some projects there are many vehicles used in the course of the operation. Whether going from one jobsite to another but also going to pick up supplies. Making sure your subs have Commercial auto liability coverage. At least making sure Hired/Non-Owned Auto endorsements are added to their General liability/BOP policy can be a minimum coverage to consider if they truly don’t have any vehicles.

Umbrella/Excess Liability Policy (amount needed will vary): Umbrella limits to increase the liability limits can be important especially depending on the size of the project and how many contractors your sub works for, a standard $1M/$2M General Liability Limit might not be sufficient. The reason for this is a $1 Million Occurrence limit on General Liability means the most one claim would pay is $1 million. If a sub has 2 claims of that amount, then they do not have any more coverage as their limits have all been used up on a $2 million General aggregate limit. For a small contractor having a $1 Million-$2 Million excess liability limit can be a good buffer to extend that, however for larger contractors this can easily go up to $5 Million or $10 Million and sometimes even higher.

If a subcontractor is doing major projects for you and several other general contractors but doesn’t have higher limits, one or two major claims could potentially wipe out their insurance limits leaving no coverage for the remainder of a policy period. If you have several projects that are total over the subs limits or if you have a multi-million-dollar project, the liability limit of some subs might not be to the level they should be at in the event of a catastrophic claim especially.

Waiver of Subrogation & Additional Insured: Additional Insured wording for the General liability and Commercial auto coverage and Waiver of subrogation on all three lines of insurance are two good ways to keep your company further protected as the General Contractor. An additional insured endorsement adds certain protections to the Additional insured for jobs the sub works on for you and the waiver of subrogation protects you from the subs insurance company from going after your company for damages. Keep in mind, these are sometimes put on a blanket or individual basis. The blankets in particular typically require a Written Contract between you and the subcontractor. Which leads me to….

Have a Written Contract: This day in age there is no good reason not to have a written contract of some sort for business conducted, especially in the construction field. Too many things can go wrong so it’s best to have a written contract. Especially on that has a Hold Harmless Agreement, insurance requirements with the above minimums and including the Waiver of Subrogation & Additional Insured requirements for applicable policies. There are many samples of contracts you can find online, as always, check with your attorney to make sure it has everything you need as well.

Screen Certificates of Insurance: In a time where insurance policies can be very costly, some sub-contractors do try to skirt the system. Fraudulent certificates of insurance whether they are for policies that never existed or for policies that have expired and the sub altered the dates these do unfortunately happen. The best way to keep from becoming a victim of this is to have certificates of insurance sent from the subcontractors Insurance Agent and make sure you are listed as a Certificate Holder. This way their agent will be able to let you know if a policy is cancelled before the expiration date.

These are just a few basics policies you will want to make sure you require from your subcontractors. Consulting with your Insurance Agent and your attorney can be best practices to make sure you doing everything you can to protect yourself. and your business.

Carriers Appetites

Carriers Appetites change dramatically from year to year. This goes mostly for different industries, but it can also apply to different coverages as well. For business owners looking for coverage this can be a frustrating and puzzling part of their insurance experience. They are simply trying to obtain proper coverage for their business. Depending on many things external to the business, carriers may change how much they desire certain coverages and industries. The prices businesses pay for coverage changes accordingly. The main way to navigate this issue is to partner with an agent you trust and an agent who works with many different carriers.

My-Insurance-Question-Carriers_Appetites

When carriers change their appetite for your industry or the coverage you need, it is because they are looking for their ideal client. Carriers want to make it as appealing as possible for those clients to purchase coverage from them and they want to make it less appealing for clients they deem a higher risk. Industries with high risk tend to pay more and struggle to find coverage while industries that carriers have a stronger appetite for are typically ones that have high premium and tend to have a low rate of claims.

In most cases, carriers are willing to be more aggressive with credits and discounts when your business is in one of these low risk industries.

If you are in a high risk industry don’t worry. There are some things you can do to combat the lack of appetite carriers may have for covering your business. First and foremost, you should find an insurance agent who partners with many different carriers and not one or a select few. This way they can shop around to find a carrier who does have an appetite for your industry. If your agent partners with one carrier or a select few, they may not be able to find the carrier who has an appetite for your industry. There are a lot of carriers who like to find a niche where they can offer to one industry and do it well. Because of this, these niche carriers may have an appetite for your industry where a major carrier will steer clear of those risky industries.

This is common in trucking and construction industries. These industries typically are a higher risk. Any business that has employees driving tend to have more claims and the claims tend to be higher cost. Because of this, some carriers specialize in these industries because they believe they can offer expertise in this niche industry where a larger carrier just does not have the time or the desire to take a risk on covering these businesses. This may be true of certain coverages too. For example, flood insurance is a coverage that is only needed in certain parts of the country. When their is a flood in an area there are typically a lot of claims within a short period of time. Some carriers jump out of the market for a few years when this occurs. Some carriers jump in, in an attempt to capitalize on these areas.

The most important thing any small business owner can do to insure their business properly is to partner with an independent agent who partners with as many carriers as possible. This will allow them to shop around for you in an attempt to find those carriers who do have an appetite for your industry. Any time you see a spike in premium you should speak with your agent about other carriers who may offer more aggressive credits or discounts. If the agent partners with many carriers they should have good knowledge of which carriers do have an appetite for your industry and they are able to leverage that to get your business better coverage and the lowest rates possible.