Minnesota Locksmith Insurance Policy Information
Minnesota Locksmith Insurance. In order to run a successful locksmith business you need more than just trained and certified locksmiths. Your locksmiths need to be bonded as well. Bonded means the locksmiths' liability is guaranteed by an exclusive bonding company (insurance company). Simply put, if the locksmiths cause any damage while performing their duties the financial obligation due to the third party is absorbed by the insurance company.
Locksmiths install, repair, open, and replace locks and locking mechanisms on homes, businesses, and automobiles. Other services include key duplications and retail sales of hardware and locks. Locksmiths often provide 24-hour emergency unlocking services. Some locksmiths also service safes, alarm and security systems.
Many business owners are under the false perception that if a locksmith is licensed they are also automatically insured. This is not true. The two are not related. Licensure speaks of a locksmith's professional training while Minnesota locksmith insurance speaks about a locksmith's liability.
Minnesota locksmith insurance protects your business from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Why You Need Locksmith Insurance
MN Locksmiths who are not bonded are at risk of having to pay for any damages should they occur. Not having Minnesota locksmith insurance also portrays the business as being less competent. In order to stay competitive and appeal to as many customers as possible and safeguard the business finances, here are the various types of locksmith insurance:
General Liability Insurance - This is an insurance policy that all MN businesses should have. It covers any damage resulting from work done as well as any injuries that might have occurred while working to any third party. Should the third party pursue legal action the general liability insurance policy will be claimed and be used to cover the associated costs e.g. any medical costs incurred, the cost of damaged property e.t.c. One great benefit of a Minnesota locksmith insurance policy is it protects the locksmith wherever he goes. In addition, the policy can be used to cover the business should another business bring legal action claiming slander or copyright infringement.
MN Business Auto Insurance - The locksmith profession is a highly mobile one. Constant travel is part and parcel of their occupation. For this reason, commercial auto insurance is absolutely essential particularly for the locksmiths who work primarily from company cars. A MN commercial auto insurance policy will cover the costs for any accidents regardless of who is at fault, any damage done to the vehicle due to a collision with wildlife and even damage caused to the vehicle by weather.
The commercial auto insurance policy can also be used to make up for any difference that might arise in the event the employee uses his own vehicle to pursue work-related errands and his personal auto policy is not sufficient to cover the financial consequences resulting from an accident e.g. medical bills, vehicle repairs etc. This is called an non-owned coverage.
Professional Liability Insurance - Also know as errors and omissions insurance, this Minnesota locksmith insurance policy that covers the locksmith in the event a professional oversight or error occurs which results in the financial loss of a third party, which is usually the customer.
For example, if the locksmith uses forceful entry and it is later determined there was a more sophisticated approach he could have used, he might face a professional liability lawsuit. In such a case the insurance policy can be claimed to cover the legal defense as well as any related expenses. Additionally, if the locksmith made any omissions that might be construed as negligence that resulted in financial loss of a third party the professional liability insurance policy will still help cater for the legal expenses and the awarded damages to the plaintiff should the locksmith be found to be at fault.
Commercial Property Insurance - This Minnesota locksmith insurance policy protects the locksmith's tools and property in the event they are damaged or lost. The damage or loss may be caused by a natural disaster, theft or even a fire. The policy is claimed to help with the repair and replacement of the tools or property.
With property insurance, business owners have the option of choosing between cash value and replacement value insurance plans. A cash value plan reimburses cash at the depreciated value of the property while a replacement plan replaces the tools/property at the initial price.
Workers Compensation Insurance - Workers comp is require in most states for an non-partner or owner employees. MN workers comp policy covers the medical costs of locksmiths injured while working. Regardless of whether they get injured by their tools, or they happen to slip on a wet floor, or their injury occurs in any other fashion, the policy will cover their medical costs. In some instances the policy may be used to compensate the locksmiths on wages they might miss out on while recovering.
Umbrella Insurance - Commercial umbrella is excess liability insurance that provides additional liability coverage beyond the limits of the underlying liability insurance. If your locksmiths regularly work for clients who own property that is very expensive extending the coverage of some of your Minnesota locksmith insurance policies is recommended since its very possible you might end up facing a liability suit that requires more than your current policies permit. This policy guarantees that any difference will not be drawn from company funds.
Minnesota Locksmith's Risks & Exposures
Premises liability exposures are light at the locksmith's premises due to lack of public access. Off-premises exposures are moderate at the client's premises, but customers can be injured or their property damaged during repair or installation. Employees of the locksmith may steal from customers. Locksmiths are held to a high degree of care because of the trust their customers necessarily place in their work.
Any time security issues are involved and a theft or crime occurs, the exposure of the locksmith who promises safe, secure premises from the installation and use of a product can result in significant products losses. The completed operations exposure can be very high if the locksmith monitors alarms.
Property exposure may be limited to an office and storage of equipment if the locksmith handles only on-call lock services. If there are retail lock and security systems sales, the stock will be susceptible to fire, smoke and water damage. Specialty equipment used to duplicate keys and open locks is a target for thieves.
Crime exposure is primarily from employee dishonesty. Background checks, including criminal history, should be performed on all employees providing services to customers or handling money. Employees who cannot be bonded and licensed are a significant hazard as they have ready access to the special tools used to duplicate keys and open locks, plus access to customers' premises and property. This exposure can quickly grow from a crime loss against the locksmith to a liability loss from customers.
Physical audits of all equipment should be conducted regularly. Receipts for monies received from customers should be reconciled daily. All ordering, billing and disbursement should be handled as separate duties with reconciliations occurring regularly.
Inland marine exposures include accounts receivable if the locksmith offers credit to customers, computers, contractors' equipment and tools transported to customers' premises, goods in transit if there are retail sales, and valuable papers and records for customers' and suppliers' information. The equipment used to open locks is attractive to thieves as it can be used to break into buildings and cars. If the locksmith installs locks or security equipment, there will be an installation floater exposure.
Business auto exposure generally consists of travel to and from job sites. MVRs must be run on a regular basis. Random drug and alcohol testing should be conducted. Vehicles must be well maintained with records kept in a central location. Emergency services result in driving to unfamiliar places at unusual hours. A significant hazard arises if the insured lacks standard procedures that apply to "on call" personnel regarding sleep, alcohol or drug use, and radius of operation.
Workers compensation exposures come from the cutting, welding, drilling, and other necessary processes during the repair and installation operation. Persons on call to handle emergency lock-outs can be injured in automobile accidents or face danger from robbery and personal attack, especially in high-crime neighborhoods, as the equipment and tools they carry are attractive to thieves.
MN Locksmith Insurance
There are many potential risks you face when operating a MN locksmith business. Having Minnesota locksmith insurance will help protect your operation, while minimizing out of pocket expenses if you are ever sued.
Minnesota Economic Data And Business Insurance Regulations
If you're an entrepreneur who is thinking about starting a business or expanding your company by opening a division in a new location, you know that there are a number of factors you have to consider. One of the most crucial elements business owners must take into consideration is the conditions of the location they are interested in; the area needs to offer conditions that are favorable for the business in order for the operation to thrive. A suitable target demographic and a healthy labor market are just some of the elements that indicate whether or not a business will thrive.
For business owners who have Minnesota in mind as their base, below, we've highlighted key details that suggest whether or not the Land of 10,000 Lakes offers favorable conditions for business owners. We also discuss the forms of commercial insurance that businesses are required to carry in the state.
Economic Trends For Business Owners in Minnesota
The unemployment rate of a state is a good indication of whether or not a state is suitable for business operations, as it provides insight into the labor market. According to the Bureau of Labor Statistics, as of May 2020, the rate of unemployment in The Gopher State was 3.3 percent, while the national average was 3.6 percent. While there has been a slight increase from 2018 (0.5 percent from June 2018 to May of 2019), the rate still indicates that the labor market in the state is favorable, which is a good sign for entrepreneurs.
Anywhere throughout the North State offers suitable conditions for businesses; however, there are some areas that are particularly ideal. These areas either large cities or areas that surround the state's largest cities, including:
- Eden Prairie
- Golden Valley
- Little Canada
- Mendota Heights
- St. Paul
- Thief River Falls
Certain industries do better than others in MN, and businesses that are centered on these industries have a greater chance of achieving success. The leading industries within the state include:
- Agriculture and forestry
- Hospitality and tourism
- Information technology
- Sustainable energy (specifically wind power)
Commercial Insurance Regulations For Businesses In Minnesota
The Minnesota Department of Commerce regulates insurance in Minnesota. Commercial insurance is designed to provide business owners and the individuals they associate with (employees, customers, and vendors) from a multitude of risks. To ensure proper protection for all, companies are required to carry the following commercial insurance policies in The North Star State:
- Workers' compensation insurance, which provides coverage for work-related injuries and illnesses that employees may sustain.
Business that use vehicles for business-related purposes over a certain weight, must also carry commercial auto insurance, and any company that sells or otherwise distributes alcohol must carry liquor liability coverage.
Additional Resources For Contractors & Home Improvement Insurance
Learn about small business contractor's insurance, including what it covers, how much it costs - and how commercial insurance can help protect your contracting business from lawsuits.
- Air Conditioning Systems Installation Repair
- Appliance Repair & Service
- Blacksmith & Metal Workers
- Builders Risk
- Building Cleaning & Maintenance Services
- Cabinet Installer
- Cable And Satellite TV Installer
- Chimney Sweep
- Contractor Liability
- Curtain Cleaners
- Deck Builders
- Door And Window Installers
- Dryer Vent Cleaning
- Drywall Contractor
- Electrical Contractors
- Environmental Remediation Contractors
- Fence Installation
- Fire Sprinkler Contractors
- Fire & Water Restoration Contractors
- Flooring Contractor
- Garage Door Installer And Repair
- Glass Contractor
- Glazier Insurance
- Gutter Installation And Repair
- House Cleaning
- HVAC Contractor
- Insulation Contractor
- Janitorial Cleaning Services
- Lawn Care
- Lawn Irrigation Sprinkler System Installation
- Paperhanging Contractors
- Plastering And Stucco Contractor
- Pressure Washing Contractors
- Propane And Fuel Dealers
- Rug, Upholstery & Carpet Cleaning
- Sandblasting Contractors
- Security Alarm
- Septic Tank Cleaning
- Siding Contractor
- Sign Installation & Repair
- Solar Panel Installers
- Snow Plow
- Stone And Tile Installer
- Surety Bonds
- Swimming Pool Contractor
- Swimming Pool Service And Maintenance
- Tree Surgeon
- Tree Trimming
- Tank Cleaners
- Upholstery Shop
- Waste Haulers & Garbage Collection
- Water Well Drilling
- Welding Contractor
- Wildlife & Pest Control
- Window Cleaning
A contractor that wants to begin or stay in business, liability coverage must be obtained for the premises or operations, off-site locations and products/completed operations exposures. These coverages may be included as a part of a businessowners policy (BOP) or purchased in a commercial general liability (CGL) policy. Owners and contractors protective liability and railroad protective liability coverages may also be required in certain cases in order for a contractor to obtain a particular job.
Physical damage coverage for tools, supplies and equipment, both on and off the contractor's premises, is a concern. Liability exposures at the premises of the contractor, and at the premises of the contractor's customer, must be properly addressed along with completed operations. Business insurance is very important as is workers compensation insurance protection for employees.
Contractors may work under a general contractor as a subcontractor in larger construction projects - like a new commercial site or residential subdivision. They can work on smaller projects directly with a home owner, usually specializing in renovations or remodels.
In business insurance speak, often called 'artisan contractors' or 'casual contractors', they are involved in many aspects of construction and contracting work – and include various trades and skills. Carpenters, painters, plumbers, electricians, roofers, tree trimmers, landscaping are just a few examples. They may do roofing, fencing, drywall, tile work and many other trades that involve skilled work with tools at the customer's premises.
An artisan contractor performs a single trade or job, and each has its own specialized liability needs with its own exposures to risk and accidents. Contractors liability insurance can offer coverage for bodily injury, property damage, advertising injury and medical payments.
Most artisan contractors should have commercial general liability at the very least, but many need broader coverages - like an umbrella to increase their limits of liability, inland marine policy to protect their tools, workers compensation if they have employees, and even commercial auto if they use vehicles for business purposes.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Contractors' Equipment and Tools, General Liability, Employee Benefits Liability, Umbrella Liability, Automobile Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivable, Builders Risk, Computers, Goods in Transit, Installation Floater, Valuable Papers and Records, Cyber Liability, Employment-related Practicesand Stop Gap Liability.
Request a free Minnesota Locksmith insurance quote in Albert Lea, Alexandria, Andover, Anoka, Apple Valley, Arden Hills, Austin, Bemidji, Big Lake city, Blaine, Bloomington, Brainerd, Brooklyn Center, Brooklyn Park, Buffalo, Burnsville, Champlin, Chanhassen, Chaska, Cloquet, Columbia Heights, Coon Rapids, Cottage Grove, Crystal, Duluth, Eagan, East Bethel, Eden Prairie, Edina, Elk River, Fairmont, Faribault, Farmington, Fergus Falls, Forest Lake, Fridley, Golden Valley, Grand Rapids, Ham Lake, Hastings, Hermantown, Hibbing, Hopkins, Hugo, Hutchinson, Inver Grove Heights, Lakeville, Lino Lakes, Little Canada, Mankato, Maple Grove, Maplewood, Marshall, Mendota Heights, Minneapolis, Minnetonka, Monticello, Moorhead, Mound, Mounds View, New Brighton, New Hope, New Ulm, North Branch, North Mankato, North St. Paul, Northfield, Oakdale, Otsego, Owatonna, Plymouth, Prior Lake, Ramsey, Red Wing, Richfield, Robbinsdale, Rochester, Rogers, Rosemount, Roseville, Sartell, Sauk Rapids, Savage, Shakopee, Shoreview, South St. Paul, St. Cloud, St. Louis Park, St. Michael, St. Paul, St. Peter, Stillwater, Vadnais Heights, Waconia, West St. Paul, White Bear Lake, Willmar, Winona, Woodbury, Worthington and all other cities near me in MN - The North Star State.
Also learn about Minnesota small business insurance requirements for general liability, business property, commercial auto & workers compensation including MN business insurance costs. Call us (612) 808-9866.