What Insurance Do Cabinet Makers Need?
Professionally designed and installed cabinets are critical to your cabinet making business. You’re known for your different styles, materials, storage solutions, and decorative accents. Your residential and business customers expect nothing less than perfection.
Cabinet makers, though, face risks. Improperly installed cabinets, an incorrect colour scheme, or a project delivered over budget can result in lawsuits and a tarnished reputation. You need cabinet making insurance to protect your business.
Do you have a cabinetry business that serves downtown Toronto condo owners or corporate offices? Or do you have residential clients who count on you for kitchen and bathroom cabinetry and design in one of Toronto’s many neighbourhoods?
Are you in Scarborough, Etobicoke, North York, East York, or York? No matter your location in Toronto, the Greater Toronto Area (GTA) or anywhere in Ontario, your Western Financial Group business insurance expert will give you top-notch advice on insurance for cabinet makers and custom woodworkers. We’ll get you tailored insurance to protect your business.
How cabinet making insurance protects you
Cabinet making insurance has specific insurance coverages designed for your business. For example, a cabinet making insurance package can help protect you should you be accused of negligence in your work, if a client gets injured, or if your tools and equipment are stolen.
Cabinet making insurance helps protect you from these 3 claims:
1. Professional negligence
You don’t complete a large custom kitchen and bathroom on time, causing a delay for the homeowners to return to their home and they decide to sue you for breach of contract. Your professional liability coverage can help cover defense costs and any settlement resulting from the allegations of breach of professional services.
2. Tools and Equipment
A thief breaks into your storage shed and steals your woodworking tools and equipment that you work with for all your projects. Your tools and equipment insurance could help cover the cost to replace what has been stolen.
3. Slips and falls
You have just finished cleaning up in the kitchen after installing cabinets and the client then slips and falls on the wet floor, injuring her back. Your commercial general liability (CGL) insurance can help cover the cost of the client’s medical expenses and help cover legal advice if you are being sued.
As a wood working expert, here’s an insurance check list:
- Do you have the best business insurance rate that suits your cabinet making business?
- Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for your cabinet making business?
- Do you know the value of your equipment and tools and are they properly insured?
- Are you or your employees using personal vehicles for your work?
At Western, we will save you time and money by doing the insurance shopping for you to find the right package at the right value for you as a cabinet maker or custom woodworker.
What do I need in my cabinet making insurance package?
Commercial general liability (CGL) insurance
It’s also known as “slip-and-fall” insurance because it protects against claims alleging third-party bodily injuries, such as a client slipping, falling, and getting injured as you install their new cabinets or if they get insured visiting your store or showroom.
It can also help protect you against third-party property damage such damaging the client’s new countertop, or false advertising, and libel or slander.
Without commercial general liability insurance, you would be responsible for paying any liability costs out of your own pocket.
The minimum recommended amount of CGL would be $1 million, but it would not be unusual to have $2 million or more, depending on the size of your cabinet making business.
Did you know that a cabinet maker is a skilled trade in Ontario?
Professional Liability Insurance
This type of insurance is also known as errors and omission (E&0) insurance.
If you are faced with a lawsuit as a cabinet maker, professional liability insurance can help protect you against loss in the event of a lawsuit due to a negligent act, or an error or omission in the course of your offering woodworking, cabinet making, and design services to a client.
In addition to claims of error, omission, or negligence, E and O can also protect against slander, libel, and breach of contract.
Some of the most common E & O situations that cabinet makers may face include:
- Cabinetry projects that are not completed to a contract with a client, such as being over budget, not delivered according to specification, or not delivered on time.
- The use of incorrect materials, colours, or mistakes in measurements.
- Changes to layouts, plans and scheduling that were not communicated to clients and/or suppliers.
Professional liability insurance (E&0) helps protect you when you give advice, make recommendations, and provide design solutions to clients. It helps cover legal defence costs and settlement costs.
Tools and Equipment Insurance
It replaces, or repairs damaged, stolen, or lost equipment and tools, accessories, or other property that you use in your woodworking or cabinet making business.
Anything valued at less than $1,500 is considered a tool and anything above that limit is considered equipment.
This type of insurance can also be called equipment floater insurance instead of equipment and tools insurance.
Commercial Property Insurance
It keeps your cabinet making business protected from property losses, such as theft or vandalism. You can also add earthquake insurance, sewer backup or flood coverage extensions to protect your cabinet making headquarters.
Commercial property insurance also protects your cabinet making business and its contents.
Property you may need to insure:
- Buildings and other structures
- Furniture, equipment, supplies
- Inventory and computers
- Documents such as payroll, accounts receivable
Business Interruption Insurance
If there is an insured loss at your cabinet business that’s severe enough to prevent it from being open, the expenses associated with getting your business running again will be covered.
This type of policy usually covers vandalism, fire, wind, flooding, and other risks (make sure to understand what your policy covers). Your policy will help compensate you for lost income and expenses that you will need to continue paying even while you are unable to work.
Does your cabinet making business keep client information online and take online payments? If so, your computer system could be hacked by cyberthieves.
Without cyber insurance, you will have to pay out of your pocket for the cost of restoring your system. You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform customers affected by a breach.
If you are using your personal car for work, your car insurance policy usually won’t cover your business. If you have a vehicle that you use as part of your cabinet making or woodworking business, then you need to be covered by commercial auto insurance.
How much insurance do I need as a woodworking expert or cabinet maker?
It will depend on the size of your business and the kind work that you do.
Ask your Western business insurance expert to determine the right level of coverage for you in this field.
What do I do if my cabinet making business or woodworking business has an insurance claim?
- Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
- Know your policy so that when you contact your broker you are familiar with what will be covered or not.
- Document the damage. Take photos right away and write down what happened.
- Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
- Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
- Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
Western Insurance has licensed BUSINESS INSURANCE EXPERTS to get your cabinet making or woodworking business the right insurance package. Our experts are available now to help you navigate the business insurance journey to protect your cabinet making business.
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