Business insurance is an important investment for a locksmith since it protects the financial assets of the business owner.
This article will discuss the primary insurance coverage for locksmiths, general liability insurance, as well as additional plans that are appropriate for this industry.
Table of Contents
Locksmith General Liability Insurance
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.
COMMON SITUATIONS FOR WHICH GENERAL LIABILITY INSURANCE MAY PROVIDE COVERAGE FOR A LOCKSMITH
Example 1: A client is looking at new locks for their house in your showroom when he tripped over a cable and falls into a display unit. In the fall, he fractures his wrist and hurts his head. If there is a lawsuit, your general liability insurance coverage would most certainly pay his medical expenses as well as your legal fees.
Example 2: You rent out basic equipment to consumers who wish to do their own lock installation. While teaching how to operate a drill, an employee stumbles and shoots the drill bit into your customer’s hand, severely hurting them. If you submit a claim, general liability coverage would most likely cover their medical fees.
Example 3: An employee loses control of his dolly while carrying a hefty inventory item from your storage facility to the sales floor. It collides with a customer’s brand-new luxury automobile, causing significant damage to the passenger door. Any required repairs will most likely be covered by your general liability insurance coverage.
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.
General Liability Insurance Cost
Locksmiths in the United States typically pay between $500 and $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.
Other Types of Coverage Required by Locksmiths
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all locksmiths should have are as follows:
Insurance for Commercial Vehicles
Making home visits is an important aspect of your company and requires you to spend a lot of time on the road. While you may use a personal vehicle for certain employment activities, if you are involved in a work-related accident, your personal car insurance coverage will not protect you. Commercial auto insurance is the greatest approach to protect your company’s vehicles and workers in the case of an accident.
Insurance for Workers’ Compensation
Workers’ compensation insurance is needed in most states for firms that employ people. If one of your workers gets hurt on the job, this coverage will assist in covering their medical expenses. Furthermore, if they are unable to return to work straight soon, they may be eligible for disability compensation.
Types of Insurance That Locksmiths May Require
In addition to the insurance described above, your locksmith may need other forms of coverage based on particular parts of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Commercial Property
Maintaining a complete inventory is critical to your company’s success. Furthermore, your specialist equipment, tools, computer system, and office furnishings allow you to meet your clients’ demands. If any of these goods are destroyed in a fire or another accident, you should replace them as quickly as possible. The cost of repairing or replacing these important business assets will be covered by commercial property insurance.
Umbrella Insurance for Businesses
If your primary insurance limits are spent as a result of an accident or a lawsuit and you don’t have a backup plan, you may be liable for settling any leftover payments on your own. Commercial umbrella insurance is meant to safeguard your company by going over and beyond the limitations of your main policy.
Additional Security Measures for Your Company
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.