Automobile exposures are generally limited to driving to and from clients’ premises. If the carpenter transports lumber and pre-made items, the exposure increases. Drivers must have valid licenses. MVRs must be run on a regular basis. Random drug and alcohol testing should be conducted. Vehicles must be well maintained with records kept in a central location. Hazards of transport include failure to secure the load properly and equipment failure, especially tie-downs and hitches. If oversized items are transported, vehicles must be clearly marked to alert other drivers.

Completed operations liability exposures are high if the carpenter erects the structural framework of a building due to the potential for collapse. Quality control and full compliance with all construction, material, and design specifications are necessary. Inadequate monitoring of work orders and change orders may be a concern as poor record-keeping may necessitate payment of otherwise questionable claims. Inspection and written acceptance of the work by the owner or general contractor is critical.

Crime exposures are from employee dishonesty, including theft of customers’ goods by the insured’s employee. Background checks, including criminal history, should be performed on all employees handling money. There must be a separation of duties between persons handling deposits and disbursements and reconciling bank statements.

Inland marine exposures include contractors’ equipment for owned or rented tools and equipment, goods in transit, and an installation floater. Equipment at a jobsite can be damaged by drops from heights, weather damage, or being struck by vehicles. Equipment and supplies left at job sites are subject to theft and vandalism. Lumber or woodwork can be damaged during transport from shifting, improper loading or inadequate tie down. Oversized loads can be damaged by collision with stationary structures or other vehicles.

Personal injury exposures include allegations of assault to the customers’ employees, discrimination, and invasion of privacy. Failure to run background checks and review references on employees increases hazard and reduces available defenses.

Premises liability exposures at the carpenter’s shop or office are generally limited due to lack of public access. Fires or fumes from woodworking and/or lumber storage operations can spread to neighboring businesses or homes. Outdoor storage may create vandalism and attractive nuisance hazards. Off-site exposures are extensive due to hazards at the job site, which can result in bodily injury to the public or employees of other contractors, or damage to their property or completed work. The area of operation should be restricted by barriers and proper signage to protect the public from slips and falls over tools, power cords, building materials and scrap. The use of saws and other power or hand tools is inherently hazardous due to sharp edges and moving parts. In enclosed buildings, the buildup of dust and scraps can result in catastrophic fire and explosion. Disposal of waste materials (dust, scrap, varnishes or paints) could create environmental hazards. If the carpenter hires subcontractors, the liability exposure increases. Poorly written contracts can result in liability hazards not anticipated for this classification.

Property exposures at the carpenter’s own location are usually limited to an office and storage of materials, equipment, and vehicles. Electrical wiring must be up to date and meet current codes for the occupancy. If the carpenter does shop woodworking, fire can result from the overheating or malfunction of equipment or the flammability of wood, paints, varnishes, and wood dust. There should be adequate ventilation and a dust collection system. Flammable varnishes and glues should be properly labeled, separated, and stored away from combustibles. Some carpenters store lumber in their yards, increasing the potential for fire, theft, and vandalism loss. Three-sided storage structures are highly susceptible to wind damage.

Workers compensation exposures vary based on the size and nature of the job. Work with hand tools and sharp objects such as saws, chisels and nails can result in cuts, piercings, and accidental amputation. Back injuries, hernias, strains, and sprains can result from lifting or working from awkward positions. Other injuries include slips and falls, foreign objects in the eye, hearing impairment from noise, and automobile accidents during transportation to and from job sites. Minor injuries may be frequent even when the severity exposure is controlled. When work is done on ladders and scaffolds, severe injury or death can result from falling, being struck by falling objects, or adverse weather conditions. The absence of good maintenance of scaffolds, proper use of basic safety equipment, such as properly installed guards, steel-toed shoes, and eye protection, and strict enforcement of safety practices may indicate a morale hazard. Employees must be carefully selected, trained and supervised. Occupational disease exposures can result from exposure to noise, dust, and chemicals, such as from pressure-treated lumber.