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Business Insurance for Locksmiths: What Do You Need?

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Why Locksmiths Need Insurance

As a locksmith, you are given access to someone's most prized possessions: homes, cars, and businesses. The services you provide are keeping someone’s possessions behind lock and key—or helping them access them. 

Owning a locksmith service is rewarding, but comes with its own set of worries. It is important to have commercial insurance for your locksmith business, to protect your customers and yourself. 

There are many types of commercial insurance policies you can tailor to your needs and provide protection from claims, lawsuits, and unforeseen circumstances. Finding the right commercial insurance policy is easier than you think with Commercialinsurance.Net.

What Risks Do Locksmiths Face?

You might be wondering why locksmith insurance is necessary. So we thought we'd share a few reasons why insurance for locksmiths is a good investment.

Example: A customer calls you out to rekey their newly purchased home. While replacing the front door locks, you accidentally damage the door frame, which will need to be replaced. General liability insurance can help to repair the damage. 

Example: One of your employees is working to help someone gain access to their home. Unfortunately, a night thinks they’re breaking in and hits your employee over the head. Your team member suffers a concussion and is in the hospital for a couple of days. This policy will help cover their medical expenses and lost wages while they recover. 

What if you run into security systems you weren't made aware of? Or your customers aren't satisfied with your work? Keep reading for more reasons why you need locksmith liability coverage for your business.

What Type of Business Insurance Does Your Locksmith Company Need?

There are many different types of business insurance policies to customize for your business. Each business is unique and has specific needs to be met by their insurance policy. Here is a shortlist of commercial insurance coverage types and how they can protect your small business.

General Liability Insurance

A general liability insurance policy will defend you and your business if a claim is brought against your business for third-party bodily injury, property damage, and advertising injury such as copyright infringement or slander. It can cover legal fees and settlements if you are sued.

Business Owners Policy

A Business Owner's Policy includes general liability insurance, property insurance, and business interruption insurance. This insurance policy is typically offered to small businesses at a cheaper rate than purchasing each policy individually. 

Commercial property insurance will protect your building—if you own a storefront—including computers/electronics, furniture, and business equipment. A business interruption policy helps cover your lost profits and other operating expenses if your business is damaged and being repaired.

Professional Liability Insurance

Professional liability insurance—also known as errors and omissions insurance—protects businesses from accusations of negligence and other professional mistakes. 

Example: You’re hired to help someone get back into your car. They give you the make and model, but not the license plate. You go to the address they gave you and break into the car for them. Turns out, you accidentally went to a neighbor's house and gained access to the wrong vehicle. The actual owner sues you for negligence. Professional liability will cover the cost of legal representation. 

Workers’ Compensation Insurance

If you’re a one-man business this doesn’t apply, but workers' Compensation Insurance will protect your business if one of your employees suffers bodily injury in a work-related accident. The policy will pay their medical bills and lost wages. This policy will also protect your business from being sued by the employee. 

Commercial Auto Insurance

Do you run a mobile locksmith business? Or drive a company car? Perhaps you use a cargo van for business purposes? You need to protect your vehicle and personal property with a commercial auto insurance policy. Any expensive tools and equipment not permanently attached to your vehicle should be covered under an inland marine insurance policy.

Example: You accidentally run a stop sign and veer away from an oncoming car—but crash into a tree. You’re fine, but your car has a dent in it and some of your tools are damaged. Commercial auto and inland marine will cover the property damage and replacement of the tools. 

How Much Does a Locksmith Insurance Policy Cost?

How much coverage do you require? How much will the insurance coverage cost? The answer depends on the location of your business and many other factors. In some states, you might be required to purchase a minimum amount of general liability insurance or property insurance. 

The cost + coverage you choose also depends on the cost of your equipment, how much your rent is for your shop, whether you have auto locksmith services, employees, etc. These things will dictate how much you purchase. At a minimum, small business owners should purchase general liability and consider investing in optional coverages for maximum protection. 

The bottom line is we always recommend purchasing the best coverage you can afford. This will ensure you are receiving the best protection within your budget. We can help you get whatever insurance options you need.

Note: Some insurance companies charge as little as $39 a month for basic general liability. We recommend speaking with an insurance agent to get a quote personalized to your business. 

Get a Free Locksmith Insurance Quote 

Let us help you protect your locksmith business and keep your mind at ease. Our goal at CommercialInsurance.Net, is to help you find the best protection for your business as efficiently as possible. If you're ready to take the first step to get a free locksmith insurance quote, complete the form at the top of the page or call us at 877-907-5267.


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