646 666 9601 [email protected]

Company insurance is intended to safeguard the financial assets of a firm owner and is a vital investment for a furniture upcycling business.

Company insurance is intended to safeguard the financial assets of a firm owner and is a vital investment for a furniture upcycling business.

This article will discuss the primary insurance coverage for furniture upcycling enterprises, general liability insurance, as well as additional policies that are appropriate for this industry.

General Liability Insurance for Furniture Recyclers

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.

Situations That a Furniture Upcycling Business’s General Liability Insurance May Cover

Example 1: One of your workers is transporting a load of furniture on a hand truck to a customer’s automobile. He loses control of the cargo, which rolls downhill and collides with another customer’s fancy automobile. Damage to client property is covered by your general liability insurance coverage.

Example 2: Because your new logo perfectly symbolises your firm, you begin to utilise it on all of your marketing materials. Unfortunately, another firm believes your logo is too similar to theirs and sues your company. In such a circumstance, your general liability insurance coverage will pay for your legal defence as well as any reimbursements or settlements that are required to conclude the case.

Example 3: A customer comes into your store and observes your furniture refurbishment procedure. An staffer inadvertently places one end of a hefty couch on a visitor’s foot. He has multiple shattered bones that need medical attention. He insists that your company pay for his medical care since the accident occurred on your property. This is most likely covered by your 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

For $1 million in general liability coverage, the typical furniture upcycling firm in America costs between $500 and $1,500 per year.

The cost of your coverage will be determined by a number of variables. Among them are your:



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 Furniture Upcycling Businesses

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 furniture upcycling businesses should have include:

Insurance for Commercial Property

You spent a significant amount of money on your tools, equipment, materials, and the numerous pieces of furniture you are upcycling. If you lost all of these items, such as in a fire, they would be costly to replace. However, with business property insurance, you are not required to bear all of the expenditures on your own. You may make a claim with your insurance to acquire cash for replacements so you can go back to work as soon as possible.

Insurance for Product Liability

The furniture you upcycle and sell to consumers may expose you to various obligations. For example, if a consumer is injured while using a piece of furniture you sold and subsequently sues your firm, you might face costly legal fees. To prevent having to pay for your own legal fees out of pocket, having a product liability insurance coverage to protect your company may be quite beneficial. If you have product liability insurance, your coverage will cover your legal fees, as well as any possible settlements.

Insurance for Commercial Vehicles

To pick up and move furniture, you will most likely have a truck or other vehicle. Most states require firms with cars used mostly for business to obtain commercial auto insurance policy. However, there are more advantages than just completing your state’s legal standards. In the case of a motor accident, your business auto coverage will cover property damage and medical treatment.

Coverage Options for Some Furniture Upcycling Businesses

In addition to the insurance listed above, your furniture upcycling company may need other forms of coverage based on particular features 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 Workers’ Compensation

If you employ people in your upcycling firm, you must obtain workers’ compensation insurance to protect both them and your company. It protects your workers by paying the expense of medical care for work-related accidents and assisting in the payment of missed earnings while they recuperate. It protects your company by ensuring that you comply with your state’s probable legal requirement that companies have workers’ compensation insurance.

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.