Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a mobile phone repair business.
This article will discuss the primary insurance coverage for mobile phone repair firms, general liability insurance, as well as additional policies that are appropriate for this industry.
Cell Phone Repair Companies Need 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:
Damage to property
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 A CELL PHONE REPAIR BUSINESS
Example 1: A client slips and falls into a glass counter as an employee shows them the pressure spots on their phone to help them avoid shattering the glass again. The impact severely injures the consumer, who wants reimbursement for their medical expenses. In the case of a lawsuit, general liability insurance would cover the customer’s medical expenditures as well as your legal fees.
Example 2: You lose control of a cart while transporting products from a storage facility to your main sales floor, and it collides with a customer’s automobile. The accident severely damages the vehicle, leaving the buyer unable to drive it home. The customer’s car repair expenses would be covered under the general liability coverage.
Example 3: A buddy breaks an arm and hits their head after slipping on spilt Coke while heading to your toilet. Your friend’s medical expenditures would be covered under general responsibility.
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
Cell phone repair shops in America typically pay between $350 and $900 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:
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 Cell Phone Repair Companies
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 mobile phone repair firms 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 Commercial Property
You’ve invested much in your company’s specialised equipment and tools. If you own the building where you do business, you are liable for any business-related property that is held there in the case of a fire, burglary, or natural catastrophe. After an accident, commercial property insurance would cover the expense of repairing or replacing your equipment and other business instruments, allowing you to recover fast.
Coverage Options for Some Cell Phone Repair Companies
In addition to the policies listed above, your mobile phone repair 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 Product Liability
When you offer things to the general public, there is always the possibility that a client would bring a lawsuit if they feel one of your products hurt them. Product liability insurance will safeguard your company by paying legal expenses and any settlement amounts.
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.