Locksmith Insurance
As a locksmith, you need coverage against many possible threats that come along with the job, including lawsuits, equipment theft, and professional errors.
Written by
Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.
Reviewed by
Paul Martin is the Director of Education and Development for Myron Steves, one of the largest, most respected insurance wholesalers in the southern U.S.
A locksmith helps homeowners and building owners gain entry when they've misplaced their keys. Locksmiths may also build and repair locks that have malfunctioned, make duplicate keys, and install new lock systems or other safety devices in homes and buildings. As such, locksmiths face a variety of unique risks due to the type of work they perform, the equipment they use, and the act of interacting with customers and the public. Worker injuries, property damage, and lawsuits can threaten your assets and the long-term financial strength of your business if you don't have the right kind of business insurance.
A local independent insurance agent can help you get equipped with locksmith business insurance. They'll help you find the right policy for your unique business. But first, here's an overview of locksmith insurance, what it covers, why it's important, and more.
Why Is Locksmith Insurance Necessary?
Locksmiths face plenty of unique risks on the job every day. They can damage a client’s door, improperly install a lock, or have their tools and equipment stolen while on the job. Any of these incidents, and many others, can lead to financial losses and even lawsuits.
Having locksmith insurance coverage can help you pay for legal expenses if you get sued over property damage or injury to a third party. Further, if your building, office space, tools, or equipment get damaged, destroyed, stolen, or vandalized, locksmith insurance can help you make repairs or replace what you need to stay in business. An independent insurance agent can help you become a properly insured locksmith.
Why Locksmiths Need Commercial Liability Insurance
You likely spend a significant amount of time working on customers’ properties while installing or repairing locks or helping them 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 could be responsible for paying for their medical bills or property repairs.
Several types of liability policies cover certain areas of your business and specific types of lawsuits. Your locksmith business insurance package will likely contain the following types of liability coverage:
- Commercial general liability insurance: This coverage can pay for attorney and court expenses and any settlements or judgments your business must pay if it gets sued for a third-party claim of bodily injury or personal property damage.
- Professional liability insurance: This can reimburse your business for lawsuit expenses and more after a third-party claim of bodily injury or property damage caused by your faulty work.
- Cyber liability insurance: This provides critical reimbursement in the event of a data breach or cyber-attack involving your business.
- Commercial umbrella insurance: Also known as excess liability insurance, this provides supplemental protection beyond the limits of your business's existing liability policies by increasing your coverage to a limit of $1 million or more.
- Employment practices liability insurance: This covers you if an employee sues you for claims of discriminatory employment practices such as wrongful termination or sexual harassment.
An independent insurance agent can help you find all the appropriate locksmith liability insurance.
Additional Business Insurance Considerations for Locksmiths
Insurance for locksmiths typically includes several forms of protection beyond just liability. You can choose between the following types of coverage to complete your locksmith business insurance policy:
- Business property insurance: This protects company buildings and their contents, including computers, office equipment, furniture, inventory, and other business property, against damage, destruction, or loss due to listed perils such as fire, smoke, theft, and vandalism.
- Business interruption coverage: This reimburses you for ongoing expenses (e.g., rent, employee salaries, etc.) and lost income if your business operations must temporarily cease due to a covered disaster such as a break-in or fire.
- Commercial vehicle insurance: This covers expenses related to company vehicle theft, accidents, lawsuits, and more.
- Employee dishonesty and crime insurance: This protects your business from the costs of theft, dishonesty, and fraudulent acts committed against your business by an employee or another criminal.
- Inland marine insurance: This protects your tools and equipment, like tension tools, key extractors, pick guns, and so on, if they get lost, stolen, or damaged while in transit between job sites and while at a customer’s home or business.
- Workers’ compensation insurance: This provides coverage for medical expenses and lost wages for workers who get injured or ill due to the workplace or job tasks.
An independent insurance agent can help you tailor a business insurance policy to your locksmith company's unique needs.
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How Much Does Locksmith Insurance Cost?
In general, locksmith insurance costs can vary depending on the size and location of your business, the number of employees you have, the amount and value of your business property, the number of company vehicles you own, and many other factors.
Working together with an independent insurance agent is the best way to find affordable coverage in your area. These agents can shop and compare locksmith insurance policies for you and ultimately present you with the best options for your unique business.
The Benefits of Working with an Independent Insurance Agent
Independent insurance agents simplify the process of finding the right locksmith business insurance. They’ll walk you through the handpicked policy options and explain the details. But most importantly, they’ll be there for you when claim time comes. Your independent insurance agent can help file business insurance claims for you and update your business's policy as necessary.