Company insurance is intended to safeguard the financial assets of a firm owner and is a necessary investment for an ebay business.
This article will discuss the primary insurance coverage for eBay firms, general liability insurance, as well as additional products that are appropriate for this industry.
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Musical Instrument 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:
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 A MUSICAL INSTRUMENT REPAIR BUSINESS
Example 1: A client is exploring your store when he stumbles over a cable on the floor, falls and fractures his arm, and requests you to pay for his medical care. His medical bills would be covered by his general liability insurance coverage.
Example 2: While visiting your store to discuss piano repair, a client stumbles on a wet surface in the lavatory, fractures his wrist, and chooses to sue your company for compensation. Your legal bills and any needed settlement would be covered by general liability insurance.
Example 3: A rival sues you for libel in your most recent commercial and claims you libelled them. While you disagree with the accusation, you understand that you need an attorney to safeguard your company. Your legal defence and any needed settlement 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
Musical instrument repair shops in America typically pay between $300 and $600 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 Musical Instrument Repair 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 musical instrument repair shops should have include:
Insurance for Professional Liability
While you endeavour to provide high-quality repair work, there is always the possibility that a consumer would determine your work did them injury. If a customer sues your company for carelessness, professional liability insurance will pay your legal bills as well as any compensation necessary.
Insurance for Commercial Property
You made a significant investment to start your musical instrument repair company. 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 facility as well as damage to the equipment and supplies stored within.
Coverage Options for Some Musical Instrument Repair Businesses
In addition to the policies listed above, your musical instrument 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 Commercial Vehicles
In the case of an accident, any car you use mainly for your repair company needs commercial auto insurance to safeguard the vehicle, driver, and others on the road. Choose a policy that not only covers accident-related vehicle repair expenses and medical care for anybody harmed, but also provides enough coverage for any company property you transport in your vehicle.
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 business is an LLC, look into LLC Insurance.