Buy Locksmith Insurance

Locksmith insurance is a type of insurance that covers locksmiths and their businesses for various risks and liabilities.

This can include coverage for property damage, liability for injuries or damage caused by the locksmith's work, and protection against theft or loss of equipment. It may also include coverage for business interruption and loss of income in the event of a natural disaster or other unexpected event that affects the locksmith's ability to operate.

The specific types of coverage and limits will vary depending on the insurance provider and the specific needs of the locksmith.

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small locksmiths ranges from $27 to $49 per month based on location, type of locks opened, payroll, sales and experience.

Locksmiths need insurance for a variety of reasons. First and foremost, insurance helps protect the locksmith and their business from financial losses due to accidents or incidents that may occur on the job. For example, if a locksmith accidentally breaks a customer's door while trying to open it, the insurance can cover the cost of repairing or replacing the door.

Locksmith insurance also helps protect from liability issues. If a customer claims that they were injured while the locksmith was working on their property, the insurance can cover the costs of any legal fees or settlements. Similarly, if a customer claims that the locksmith's work was faulty and caused damage to their property, the insurance can cover the costs of repairing the damage.

In addition, insurance can provide peace of mind for both the locksmith and their customers. Customers can feel reassured knowing that the locksmith is insured and that any potential accidents or issues will be covered. This can help build trust and confidence in the locksmith's business.

Overall, insurance is an important tool for locksmiths to protect themselves and their business from potential financial losses and liability issues. Without insurance, a single incident or accident could potentially ruin a locksmith's reputation and financial stability.

General Liability Insurance - This is an insurance policy that all 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 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.

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 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 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 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. 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 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.

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.

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.

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.

Locksmiths can be sued for various reasons, including:

• Property Damage: Locksmiths can be sued if they accidentally damage a customer's property while performing their duties. For example, they may drill a hole in the wrong place or damage a door while attempting to open a lock.
• Personal Injury: If a customer or a third party is injured as a result of a locksmith's actions, they may sue the locksmith for personal injury. For example, if a locksmith installs a faulty lock that causes a customer to trip and fall, the customer may sue for their injuries.
• Negligence: Locksmiths can be sued for negligence if they fail to perform their duties with the required level of care and expertise. For example, if a locksmith fails to properly install a lock or provide adequate security advice, they may be sued for negligence.
• Breach of Contract: Locksmiths can be sued if they breach their contractual obligations to a customer. For example, if a locksmith fails to complete a job as agreed or provides faulty products, the customer may sue for breach of contract.

Locksmiths can protect themselves from these lawsuits by obtaining insurance. There are two types of insurance that are relevant for locksmiths:

General Liability Insurance: This insurance covers locksmiths against claims of property damage, personal injury, and negligence. If a locksmith is sued for any of these reasons, their general liability insurance can help pay for legal defense costs, settlement payments, and court-ordered damages.

Professional Liability Insurance: Also known as errors and omissions (E&O) insurance, this type of insurance covers locksmiths against claims of professional negligence, errors, or omissions. If a locksmith is sued for failing to provide adequate advice or making a mistake in their work, their professional liability insurance can help pay for legal defense costs, settlement payments, and court-ordered damages.

For example, if a locksmith accidentally damages a customer's property while attempting to open a lock, their general liability insurance can help cover the cost of repairs or replacement. If a locksmith is sued for providing faulty security advice that leads to a break-in, their professional liability insurance can help cover the cost of legal defense and any damages awarded to the customer.

In summary, locksmiths can protect themselves from lawsuits by obtaining insurance. General liability insurance can cover claims of property damage, personal injury, and negligence, while professional liability insurance can cover claims of professional negligence, errors, or omissions.