Company Insurance is meant to safeguard a business owner’s financial assets and is a vital investment for a bike repair shop.
This article will discuss the primary insurance coverage for bike repair businesses, general liability insurance, as well as additional policies that are appropriate for this industry.
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
Example 1: A client requests a test ride on a bike. He loses control and crashes, fracturing his arm. He sues your company. Your general liability insurance will cover your legal bills, as well as a settlement if one is required.
Example 2: A customer’s youngster is exploring your store as you speak with her father. She falls into a pile of tools and equipment, causing injuries that require medical attention. Her father has requested that you pay for her medical care. This is most likely covered by your general liability insurance.
Example 3: A rival bike store has written you a letter saying you slandered their company by speaking to the local news station. They plan on filing a lawsuit. Your general liability insurance will cover the cost of an attorney as well as the expense of a settlement if one is required.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
The typical bike store in America pays $500-$1,500 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that every bike repair companies should have are as follows:
All of the goods and equipment you’ve put in to run your bike store would be expensive to replace if they were lost in a fire or other unforeseen incident. However, if you have commercial property insurance, you may make a claim with your insurer if the loss was caused by a covered occurrence, and you should be able to receive money to assist with replacement expenses.
There is always the possibility that a consumer would allege that your work caused them harm. If you are sued by a client, for example, if she claims you made a mistake in your repair job that injured her, your professional liability insurance will cover your legal fees.
In addition to the insurance listed above, your bike repair business may need other forms of coverage based on particular features of your operations. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Most states require companies to carry workers’ compensation insurance, so if you have employees, you almost certainly need one. If an employee is injured while doing job-related responsibilities, the insurance will cover the cost of his or her medical care. The coverage will also cover any missed earnings. If the individual is unable to work while healing.
If your company sells items, such as bike accessories, a product liability coverage can protect you in the event that a consumer claims one of your products injured him or her. If a consumer sues your company over a product you sold, your insurance will pay for the expense of hiring an attorney. It would also cover the expense of paying a settlement if the lawsuit had to be settled out of court.
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.