Company insurance is intended to safeguard the financial assets of a firm owner and is a necessary investment for an elevator installation and repair service business.
This article will discuss the primary insurance coverage for elevator installation and repair services, as well as general liability insurance and other policies that are appropriate for this industry.
Table of Contents
Elevator Installation and Repair 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.
GENERAL LIABILITY INSURANCE MAY COVER COMMON SITUATIONS FOR AN ELEVATOR INSTALLATION AND REPAIR SERVICE BUSINESS
Example 1: While working on an elevator in an apartment complex, a tenant falls over your equipment, fractures his arm, and chooses to sue your company. Your legal defence expenses and any needed payment would be covered by general liability insurance.
Example 2: You and your employee are transporting a heavy piece of equipment onto a work site when you unintentionally dump the item on someone’s expensive cars. The car repair expenses would be covered by general liability insurance.
Example 3: While concentrating on some repair work, an employee fails to see a lady coming behind him, backs up, and knocks her to the ground. The lady fractures her wrist in the fall and requests that your company pay for her medical care. Her medical expenditures would be covered by general liability insurance.
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
Elevator installation and repair businesses in the United States typically pay between $500 and $1,500 per year for $1 million in general liability coverage.
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 Coverage Elevator Installation And Repair Services Required
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 elevator installation and maintenance businesses should have include:
Insurance for Workers’ Compensation
Workers’ compensation insurance is required in most states for both part-time and full-time employees. This coverage covers your workers if they are hurt at work or get sick as a result of a workplace accident. It covers not just an employee’s medical expenditures and missed pay if they need time off to recuperate, but also any disability or death benefits resulting from a work-related accident.
Insurance for Professional Liability
While you work hard to finish your elevator installation and repair job flawlessly, there is always the possibility that someone would claim your expert services did them injury. If a customer sues your company, alleging you made a mistake or failed to deliver on time, professional liability insurance will pay your legal bills as well as any needed compensation.
Some Elevator Installation And Repair Services May Require Specific Coverage
In addition to the policies listed above, your elevator installation and repair service company 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.
Insurance for Commercial Property
You made a significant investment in the equipment and materials required to start your installation and repair business. Commercial property insurance would cover the expense of repairing or replacing your business-related property in the case of a fire, theft, or natural catastrophe. This covers structural damage to your premises as well as the business items stored inside it.
Umbrella Insurance for Businesses
While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket.
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.