What insurance do you need for a woodworking operation?

A business owner's policy would be a good place to start here. This type of policy comes as a package that includes general liability, and some property coverage. Although you may not need property coverage for a building in this case, this policy would cover still be able to cover some of your business personal property and tools. Make sure you have adequate coverage for "Products & Completed Operations" which will be included. This will protect you in case your completed products fail and cause some sort of liability.

If you have employees, Work Comp is often required as well if you are doing work specifically for other entities.