Insurance Cost for a Cabinet Manufacturer: What Impacts Your Premium
- 4 days ago
- 2 min read
Operating a cabinet manufacturing business or woodshop involves heavy machinery, valuable inventory, and skilled labor. With these assets come risks—from workplace injuries to equipment breakdowns and property damage. Understanding the insurance cost for a cabinet manufacturer helps business owners budget appropriately while securing comprehensive protection.
Average Insurance Costs
The cost of a full insurance package for a small to mid-sized cabinet manufacturing business typically ranges from $2,000 to $6,000 per year, depending on the size of the shop, number of employees, equipment value, and coverage limits. Larger manufacturers with multiple locations or higher-value machinery may see premiums exceed $8,000 annually.
Here’s a breakdown of typical coverage costs:
General Liability Insurance: $500–$1,500 per year, protects against third-party injury or property damage claims.
Commercial Property Insurance: $800–$2,000 per year, covering the workshop, tools, machinery, and inventory.
Workers’ Compensation Insurance: $500–$1,500 per year, depending on employee count and job risk classifications.
Commercial Auto Insurance: $1,200–$3,500 per vehicle annually if delivering cabinets or transporting materials.
Equipment Breakdown Insurance: $300–$800 per year, covering repairs or replacement of machinery like CNC routers and saws.
Business Interruption Insurance: $200–$500 per year, to protect income if your shop temporarily closes after a covered event.
Key Factors Affecting Your Premium
Number of Employees: More employees increase exposure to workplace injuries, affecting workers’ comp premiums.
Equipment and Inventory Value: High-value machinery and woodstock increase property and equipment coverage costs.
Safety and Maintenance Programs: Shops with documented safety protocols, proper ventilation, fire suppression systems, and regular equipment maintenance may qualify for lower premiums.
Claims History: Previous insurance claims can impact your rates.
Location: Shops in areas prone to theft, fire, or natural disasters may see higher property insurance costs.
How to Get the Best Quote
Because insurance costs vary based on your woodshop’s size, operations, and risk profile, the best way to get accurate pricing is to request a tailored quote. Wexford Insurance specializes in cabinet manufacturing and woodshop coverage, helping shop owners secure policies that protect equipment, employees, and revenue while keeping premiums competitive.
Request a custom cabinet manufacturer insurance quote from Wexford Insurance today to safeguard your business from unexpected losses.
