A locksmith helps homeowners and building owners get into their homes and buildings when they have lost their keys. Locksmiths may also build and repair locks that have malfunctioned, make duplicate keys, and install new lock systems and other safety devices in homes and buildings.
Locksmiths face a variety of unique risks and liabilities to contend with due to the type of work they perform, the equipment they use, and the simple act of interacting with customers and the general public. Worker injuries, property damage, and lawsuits can threaten your assets and the long-term financial strength of your business.
But locksmith insurance can help you mitigate your risks and protect your business. You need an experienced independent insurance agent to help you assess your risks and find the right business insurance policies from highly rated insurers.
Why Do You Need Locksmith Insurance?
Being a locksmith is a highly-skilled and unique profession. While you strive to have a perfect outcome at every job, sometimes things go wrong. You can damage a client’s door, improperly install a lock, or even have your tools or equipment stolen or damaged while you’re on the job.
Any of these incidents, and many others, can lead to financial losses and even lawsuits.
You need locksmith insurance to help you pay for legal bills if you're sued over property damage or some other type of negligence claim. And if your building, office space, tools, or equipment are damaged, destroyed, stolen, or vandalized, you need locksmith insurance to help you make repairs or replace what you need to stay in business.
When you work with an experienced independent insurance agent, he or she can find insurance companies who specialize in locksmith insurance. You likely need a variety of property and liability insurance policies in order to be sure that you are protected.
Liability Insurance for Locksmiths
You likely spend a significant amount of time working on customers’ properties while installing or repairing locks, or helping people enter their homes or cars. If you or one of your employees injures a customer or a member of the general public, or if you cause damage to a home or a business, you’ll be responsible for paying for medical bills or property repairs. What’s more, you could be sued by a former employee or for a variety of other reasons.
Liability insurance helps you pay for situations in which you’re accused of some kind of negligence. There are several types of liability policies that cover certain areas of your business or specific types of lawsuits. Your business insurance package may contain the following types of liability coverage:
- Commercial general liability (CGL) insurance: This provides coverage for costly claims and lawsuits. As a locksmith, installing and maintaining locks and safety devices in other people’s residences and businesses opens you up to many risks. If you’re installing a lock in a client’s home and you cause damage to the home, the cost of repairing the damage will be covered by your general liability insurance policy. If your sued, the CGL policy will pay for attorney fees, court costs, and any settlements or judgments that you must pay. General liability insurance also provides coverage for claims of slander, libel, and advertising injury.
- Cyber liability insurance: This provides coverage in the event of a data breach involving your business. It helps pay for the costs of notifying affected clients, as well as public relations and investigation costs, and more.
- Commercial umbrella insurance: Also known as excess liability coverage, this provides supplemental liability protection beyond the limits of certain other liability policies. This policy can be invaluable for that once-in-a-lifetime judgment rendered against you.
- Employment practices liability insurance: This covers you if an employee sues you for discriminatory employment practices.
Commercial Auto Insurance for Locksmiths
Most of the work you do as a locksmith is at residences or at businesses. Your employees and you are on the road with trucks, vans, or other vehicles traveling from job to job. That’s why you need commercial auto insurance.
Commercial vehicle insurance for covers your cars, trucks, and any other vehicles you use for business. It provides bodily injury and property damage liability coverage, as well as collision, comprehensive, and uninsured motorist coverage.
Your commercial auto insurance can be tailored to your needs, and your coverage and premiums will be based on how your vehicles are used and who drives them. Each vehicle owned by your business or used for business purposes can be listed separately on your business auto policy, with corresponding coverage for each vehicle that can differ depending on the vehicle’s characteristics and the coverage it requires.
Why Do You Need Workers’ Compensation Insurance?
You need workers’ compensation insurance to help employees who are injured on the job. Installing or repairing locks at businesses and homes can sometimes be dangerous.
Workers’ compensation insurance provides coverage for medical expenses and lost wages for injured workers. Business owners are required to carry workers’ compensation insurance to protect their employees. Specific coverage requirements vary by state.
Property Insurance for Locksmiths
You likely have owned or leased office space or warehouse space. Your building or leased space is filled with valuable furniture, equipment, tools, locks and other product inventory, and other business property that is susceptible to theft, vandalism, fires, storms, and certain other causes of loss.
Business property insurance: This protects buildings and their contents, including computers, office equipment, furniture, inventory, and all of your business property — whether it is owned or leased — if it is damaged by fire, smoke, theft, vandalism, or some other covered peril.
While commercial property insurance protects your belongings on your premises, it’s also very important to protect your tools and equipment that travels with you or employees from jobsite to jobsite. Inland marine insurance protects your locksmith’s tools and equipment, like tension tools, key extractors, pick guns, and so on, if they’re lost, stolen, or damaged while they’re in transit between jobsites or while they’re at a customer’s home or business.
Other property insurance policies that locksmiths might need include:
- Business interruption coverage: This reimburses you for ongoing expenses (rent, salaries, etc.) and lost income if you sustain covered property damage (e.g., from a fire or a tornado) to your building or office that forces you to temporarily close or relocate.
- Flood or hurricane insurance: Your basic commercial property policy does not cover flood or hurricane damage. Talk to your agent about flood and hurricane insurance if you live in an area that is prone to these events.
- Employee crime and dishonesty coverage: This protects your business from the costs of theft, dishonesty, and fraudulent acts committed by an individual employee or a group of employees. It provides coverage for forgery, alteration, theft, unauthorized electronic funds transfers, credit card fraud, computer fraud, money order fraud, and counterfeit fraud.
How Much Does Locksmith Insurance Cost?
In general, insurance costs for locksmiths will vary depending on the size of your business, the number of employees you have, the amount and value of your tools, equipment, and inventory, the location of your business, the number of vehicles you own, and a variety of other variables.
An independent insurance agent can guide you though your options so you get coverage that meets your needs and budget.
Benefits of an Independent Agent
Our agents simplify the search process for finding the right locksmith insurance. They’ll walk you through the handpicked policy options and explain the details.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get — but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can omit important coverage that will leave you devastated if something unexpected happens. And they can leave out cost-saving opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.
TrustedChoice.com Article | Reviewed by Paul Martin
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