Furniture repair companies are primarily engaged in repairing or restoring a wide variety of furniture, from newer pieces to family heirlooms. They typically offer repairs for problems like dents, varnish damage, leather tears, cracked mirrors, refinishing, and repainting. Many furniture repair shops offer in-home touch-ups and repairs as well, when possible for the convenience of the customer.
If you own a furniture repair business and want to stay in business for the long term, it’s important to protect your investment with a solid business insurance program designed specifically for your business. Because every business is unique, you need quality, affordable coverage that addresses your specific business risks, including theft, property damage, and lawsuits.
Why Do You Need Furniture Repair Insurance?
You face a variety of business risks in your shop. Furniture repair insurance is one of the best ways to protect your shop from many of them.
Just a few of the risks that your furniture repair shop faces include:
- Property damage due to fire, storm, burglary, or vandalism
- Lawsuits based on claims of injury or property damage that you cause on your premises or at a customer’s home
- Lawsuits based on claims of false advertising, slander, or libel
- Employee theft or crime
- Auto accidents caused by you or an employee while driving your business vehicles or driving for business purposes
- Employee illness or injury
- Damage to customers’ furniture being stored or repaired in your shop
Your furniture repair insurance protects you in these and other circumstances. Without it, any one of these types of incidents could cost tens of thousands of dollars—at least. For a small business, any unexpected loss could quickly force you to close your doors for good.
What Does Furniture Repair Insurance Cover?
Furniture repair shops need a variety of business insurance policies in order to protect their livelihood, their customers, and their employees. The type and amount of coverage that you need will depend upon:
- The size of your business
- Whether you own your building or lease your space
- The amount of commercial property you have, including equipment, office furniture, computers, tools, supplies, inventory, etc.
- The number of employees you have
- Where your business is located
Working with a local independent insurance agent, you can determine which policies and coverage will best protect you if you have a loss. Most small businesses will need several policies in order to protect all aspects of their businesses.
Commercial General Liability (CGL) Insurance
General liability insurance protects your business from claims of third-party bodily injury and property damage. If someone were injured in your shop or if a repair technician caused damage to someone’s home or injured someone while working in their home, this policy would cover the related medical expenses or property repair costs.
In addition to paying for damage, a general liability policy covers certain costs associated with your legal defense (attorney fees, court costs, settlements, and judgments) if you are sued. It may also provide coverage for claims of advertising liability, slander, and libel.
Commercial Property Insurance
Property insurance protects your business property (buildings and their contents) from costs associated with fires, windstorms, hail, smoke, theft, and vandalism. It will help you pay to repair or replace items like fixtures and furnishings, computer equipment, inventory, parts, and other supplies.
Furniture repair shops have highly flammable parts, lacquers, paints, and wood products on hand at all time. Commercial property insurance is essential for protecting everything valuable on your premises.
Your commercial property policy should also include business interruption insurance. This coverage helps you pay for ongoing business expenses (rent, employee salaries, etc.), lost income, and even relocation expenses if you must temporarily close in order to recover after some type of covered event (e.g., a fire).
Many small businesses qualify for a business owners policy (BOP). A BOP combines liability, property, and business interruption coverage into one convenient and more affordable package policy.
Your independent insurance agent can help you decide if a BOP is right for you. And remember, if you need more coverage than what the BOP provides, it can be customized to your needs and additional coverage can be added with endorsements, riders, and stand-alone policies.
What Other Furniture Repair Insurance Policies Are Necessary?
After you have taken steps to protect your business from property damage and lawsuits, you will want to assess your need for several additional types of business insurance for furniture repair shops.
- Worker's compensation insurance protects your employees from the costs of work-related illnesses and injuries. Your employees may be at risk from lacerations, slips and falls, and even repetitive motion injuries. If you have employees, your state requires you to have worker's compensation insurance, which will cover medical expenses and lost income for employees who are injured on the job.
- If your CGL policy does not provide sufficient liability protection for your needs, consider commercial umbrella insurance. It adds an extra layer of protection with liability coverage above and beyond the limits of your CGL and certain other liability policies. It kicks in when the limits of your other applicable policies have been exhausted. If a customer or another third party sues you, this coverage can be the difference between financial devastation and complete recovery.
- If your business owns vehicles, or you or your employees drive personal vehicles for business use, you need commercial auto insurance. Commercial auto insurance will cover your business autos just like your personal auto insurance covers your personal vehicles. However, if you or your employees drive personal vehicles for business use, you need non-owned commercial auto liability insurance to cover the drivers and vehicles.
- Flood insurance and earthquake insurance may be necessary if you live in an area that is prone to these natural disasters. Talk to your independent insurance agent about your need for this type of coverage.
- Employment practices liability insurance provides coverage if an employee sues you for discriminatory employment practices.
- If you process information electronically, keep electronic records, or simply take credit card payments, the costs associated with a single cyber breach can be far-reaching and devastating. A cyber liability insurance policy can cover everything from legal and forensic services to public relations costs and liability judgments if sensitive customer data is exposed.
- Crime insurance protects your business from the costs of theft, dishonesty, and fraudulent acts committed by an individual employee or a group of employees. It also covers theft or vandalism by customers or other visitors.
You can customize all of your business insurance policies to address your specific exposures and to ensure that you have appropriate coverage limits.
What Is Bailee’s Coverage?
The majority of your business probably revolves around you taking furniture into your shop for repair. What happens if a customer’s family heirloom is damaged while it is in your care, custody, or control? Because standard business property and liability policies cover only your own business property, you need special coverage for your customers’ property that is in your possession.
Bailee’s coverage is an add-on to a business property policy that covers non-owned property that is stored at your shop or is in your possession. It helps pay for damage and minimizes the financial implications for you and your customers if their property is damaged while in your control. Bailee’s coverage is specifically designed for businesses that take in the property of others and are expected to return it undamaged.
How Much Does Furniture Repair Insurance Cost?
Furniture repair insurance costs will vary depending on the size of your business, the coverage you need, and the unique risks you face. A multi-location business will pay more than a single-location establishment; a store in a hurricane zone might pay more than one located away from the coast.
With so many variables (e.g., number of employees, amount and value of commercial property, the number of vehicles you own, size and location of your building(s), etc.), insurance costs can be hard to predict.
But an independent insurance agent can guide you though your options so you get coverage that meets your budget.
Find and Compare Quotes
An independent agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice.
Benefits of an Independent Agent
Independent insurance agents simplify the search process for finding the right furniture repair insurance. They’ll walk you through some 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 leave out 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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