A bicycle repair shop is designed to get someone's two-wheeled mode of transportation back in action. Bikes are expensive and complicated non-motorized pieces of machinery that take precision and skills to repair. That's why an independent insurance agent can make sure you have the proper insurance for your shop.
If you're a bicycle repair shop owner you need a comprehensive insurance package that is going to protect you against the risks your business might face. An independent insurance agent is a perfect companion to help you shop and track down an ideal business insurance package that fits the needs of your repair shop.
Risks Facing a Bicycle Repair Shop
You might not have shoppers coming in and out of your store, but there are still several risks that a bicycle repair shop faces. From a client getting injured while testing out their bike to injuries and damage resulting from a natural catastrophe, these are a few risks to be aware of.
- A customer is picking up their repaired bike and taking it for a test ride, and falls and breaks their wrist.
- You repair a bike and return it to a customer and three days later your repair fails and the customer is injured.
- An employee deeply cuts their finger trying to fix a bicycle tire and needs to go to the hospital.
- A tornado floods your business, ruining your materials and your customers' bikes that are in the store for repair.
- An employee is caught stealing materials or money from you.
As you can see, there are many things that can go wrong at any time, which is why you need an insurance package that will cover all aspects and risks for your bicycle repair shop.
The Best Insurance for Your Bicycle Repair Shop
Keeping your bicycle repair shop protected will require a combination of property and liability insurance policies. You'll also need bailee's insurance, which is specifically designed to protect your customer's property should it be damaged on your watch.
- Business property insurance protects you if a fire, vandalism, smoke, theft or other event damages your property. It provides coverage for lost inventory, office equipment, computers and more.
- Business interruption coverage pays for rent, employee salaries, and other expenses if your shop must close temporarily due to an unforeseen disruption.
- Commercial general liability (CGL) insurance provides protection for most basic liability issues that bicycle repair shops could face. It protects you from the costs of lawsuits related to accidents, property damage and a variety of other mishaps.
- A business owners policy, or BOP, is a package policy designed for small businesses. It combines property, liability and business interruption coverage in one affordable policy.
- Product liability insurance protects you from certain types of legal liability associated with a product defect that causes personal injury or damage associated with its use.
- Premise liability insurance provides protection should someone get injured while on your business property, most likely while test riding their bicycle around your building.
- Employee theft and crime coverage can protect you from instances of employee theft, fraud or other crimes against your business.
What Is Bailee's Insurance?
When you agree to repair someone's bike, you're taking temporary ownership of, and responsibility for, your customer's property for the amount of time that it takes you to fix it. If something happens to that bicycle while it's in your hands, whether or not it was your fault, you're responsible for the damage.
Bailee's insurance, sometimes referred to as bailee's liability coverage or bailee's customer insurance, helps pay the costs to repair or replace the damaged or destroyed property.
Should a fire hit your bicycle repair shop, your property insurance will help you replace any equipment and buildings damaged by the blaze, but it won't help you and your customers replace their bicycles that were in your shop. Only a bailee's insurance policy can do that.
Along with theft and fire protection, good bailee's insurance policy coverage should also include protection from:
- Water/flood damage
- Wind damage
Protection for Your Employees
If you have employees working for you, then you'll need to provide workers’ compensation insurance to protect thems from any injuries or illnesses they may sustain while on the job.
Workers' compensation covers medical bills, lost wages, and any costs associated with workplace injuries and occupational illnesses. Each state has workers’ compensation insurance laws. Most states require nearly every business that has employees to provide this coverage.
Your state’s workers’ compensation statutes determine what benefits injured workers are entitled to and what impairments or injuries are covered. The statutes also determine how those impairments will be evaluated and how medical care will be delivered.
Talk with your independent insurance agent about workers’ compensation insurance. Your agent should be able to educate you about your state’s workers’ compensation requirements and help you find adequate coverage.
How Much Does Bicycle Repair Shop Insurance Cost?
The cost to insure your bicycle repair shop will be determined by a number of factors. Every repair shop is different in size, offerings, and location, which can all affect how much you pay. Some of the factors that will determine your premium include:
- Number of employees
- Claims history
- Yearly sales
How to Find the Best Coverage
Bicycle repair shops are unique businesses, and your business insurance coverage should be unique, too. You need a customized mix of property and liability protection to make sure you stay in business as long as possible.
With the help of an experienced independent agent who specializes in bicycle repair shops, you can find a business insurance program that addresses:
- The size of your business
- The type of your business
- The number of employees you have
- The products you sell
- The services you provide
Your agent should provide you with multiple proposals from reputable insurance companies that specialize in bicycle repair shop insurance. Contact an independent insurance agent today.