Appliance repair businesses need comprehensive insurance programs tailored to their needs. Like many other types of businesses, you face risks to your business property from fire, theft, vandalism and more. In addition, you have to protect your business from damage you might cause to other people’s property while you repair it and while your employees are driving your trucks or vans out on public roads.
The Appliance Repair Business Can Be Risky
Appliance repair shops may conduct repairs on-site at homes or businesses, or they may take customers’ appliances into the shop. Any number of adverse events could occur no matter where you work. You or your employees can damage a customer’s appliance during transport, while in your shop or during the course of making repairs.
Like any retailer or shop owner, the possibility for property damage to your building and business property or to your customers’ property is endless. Your shop can catch fire, damaging everything inside – including appliances that belong to customers, which are stored at your shop.
The specific business insurance policies that you need depend on where you work, the number of employees that you have and the types of services you provide. Any business that provides maintenance services requires special insurance policies and endorsements that address risks to:
- your building or shop.
- your own office equipment, computers, tools and equipment.
- your customers’ physical well-being while on your premises.
- your customers’ property while in your care.
- repair technicians driving company-owned vehicles.
Types of Business Insurance for Appliance Repair Businesses
Appliance repair businesses need a variety of basic business insurance policies as well as endorsements and coverage options tailored to their specific business risks.
- Commercial general liability (CGL) insurance: This coverage pays for the costs associated with bodily injury or property damage claims against your business. General liability insurance offers broad protection for a variety of liability risks that your business is exposed to, from customer slips and falls to claims of advertising liability, slander, libel and more. Your CGL policy pays for your legal defense, attorney and court costs, and any settlements or judgments that you must pay, up to your policy limits.
- Bailee's Coverage: You can also be held responsible for damage to customer property that is held in your care, custody or control. If you take customer appliances onto your premises to make repairs, you should consider bailee’s coverage. It covers nonowned property (customers’ appliances) stored at your shop or in your possession.
- Business property insurance: Appliance repair businesses need to protect their building(s) and contents from costs associated with weather, fire, smoke, vandalism, theft and other types of property damage. Business property insurance protects not only your building but also your computer systems, fixtures, parts inventory, tools and other equipment that you use in your operations.
- Business interruption coverage: Your business property policy should also include business interruption coverage, which provides income protection if you must temporarily cease operations due to some unforeseen event (fire, weather, etc.).
- Business owners policy (BOP): If you qualify, you might choose to purchase a business owners policy, which is a small business insurance policy that includes property, liability and business interruption coverage in one affordable package.
Appliance Repair Businesses Need Commercial Auto Insurance
You likely have employees that go out on deliveries or pickups, or who drive from site to site all day to do repairs. In these cases, it is likely that you provide trucks, vans or other vehicles for your employees to drive.
Whether you own one truck or a fleet of vehicles, you need commercial auto insurance. Commercial vehicle insurance 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.
While similar to personal auto insurance, commercial auto insurance is priced differently and is designed for commercial situations. 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 appliance repair 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 coverage requirements.
It is important to note that if you or your employees drive personal vehicles for business use, you need nonowned auto insurance coverage. Nonowned auto insurance coverage can be part of your business auto policy, or it can be added on to your commercial liability coverage if your business does not own any vehicles. It covers you and your employees while driving personal vehicles for business purposes.
Consider Additional Coverage to Protect Your Livelihood
Your appliance repair business also needs a variety of other business insurance policies depending on where and how you do business, how many employees you have and other factors that you should discuss with your agent. Most of these policies can be tailored to the exact needs of your business and the risks it faces.
- Employee theft and crime coverage protects you from instances of employee theft, fraud or other crimes against your business.
- Workers’ compensation insurance is typically required for any business that has employees and pays for lost income and medical expenses for employees that are injured on the job.
- Inland marine coverage protects tools, equipment and supplies that you bring off-site to make repairs; commercial property and commercial auto policies typically exclude coverage for those items once they leave your business premises.
Partner With an Independent Insurance Agent to Find the Best Appliance Repair Coverage
An appliance repair business insurance program must be developed in partnership with your independent insurance agent who has experience with your specific type of business. Every policy you purchase can be adjusted to fit the needs of your business and the risks you face.
Your insurance agent can help you determine what type of coverage you need – and what you don’t. Make sure that you are comparing equivalent coverage when your agent submits competitive proposals to you. Your independent insurance agent should be able to show you quotes from multiple reputable insurance companies who know how to insure appliance repair businesses. Contact an Independent Insurance Agent today.