Upholstery Shop Insurance Policy Information
Upholstery Shop Insurance. Upholsterers remove old fabric, padding, stuffing, and springs from furniture and replace them with new. The old finish may be removed, and the piece may be sanded, painted, varnished, or shellacked. The upholsterer may provide furniture repair services, such as gluing loose joints or replacing dowel rods. Operations are generally conducted on the premises. They may include picking up and delivering items to customers.
Being a store owner in the upholstery business you help customers with furniture that is broken, tore or stained, or otherwise damaged or just out of style. Some of your customers might just want to add a touch of modernity to their homes without sacrificing a good old quality sofa. Your services provide maintenance caused by wear and tear for customers' old furniture and give it a fresh out of the plastic new look.
With your type of business, you come across there is a lot of damaged furniture and it is a hard task to restore furniture back to its original state when first purchased. There are profits to be made in the upholstery business but not without the associated risks. Risks that might be catastrophic if not backed by a specialized upholstery shop insurance coverage.
Upholstery shop insurance protects your business from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Do You Need Upholstery Insurance?
Yes. Indeed you do. If you own an upholstery shop you have trained to be a professional. You are aware of your job and your workplace is a safe and suitable environment tailored for your needs as an upholster. Unfortunately accidents can still occur during your job. Professional upholsters may have plenty of years of experience handling and fixing dilapidated furniture, but the fact that the equipment used to hold furniture might collapse and cause damage to your workplace is not far from likely. In some cases, even the slightest of accidents can be disastrous without upholstery shop insurance coverage.
Types Of Insurance For Upholsters
There are several business risks associated with owning and operating an upholstery store. The most essential types of upholstery shop insurance policies are discussed further:
General Liability Insurance: Commercial general liability insurance is the most foundational insurance coverage for upholsterers. It includes:
- Premises liability coverage - This part of the general liability policy protects your customers from injuries occurring on your business property. Whether a worker twists his ankle while handling heavy equipment or a customer tripping off some old wire in your workshop, premises liability coverage pays for the damages.
- Products liability coverage - Protects you from lawsuits filed against you due to products sold or advertised by your shop. For example, if your shop sells "DIY" tools and materials and these products have defects in them causing damage furniture or poses a health risk for customers, litigation could follow. Products liability coverage covers all legal costs and costs incurred from the damages caused by your products.
- Completed Operations - The part of the upholstery shop insurance that protects you from damages that arise after the work for a customer is finished. Issues such as poor maintenance or the use of materials causing allergic symptoms in clients can occur. Completed operation coverage covers all legal costs and pays for damages caused.
Business Property Insurance: Commercial property helps protect the building your business leases or owns as well as your business personal property including:,p>
- tools and equipment
A commercial property insurance policy can include coverage for assets like accounts receivable, computers and lost income for when business operations are suspended due to a covered loss. Businesses can tailor their coverage to include additional protection like valuable papers and records coverage that can help pay to reproduce important documents, provide temporary storage and move records to avoid a loss.
Workers' Compensation Insurance: Workers comp is required by law in most states for non-owner employees. On the off chance that a worker suffers a business related injury or sickness while working for you, the medical and rehab costs are completely covered. For instance, you may have a worker that injures his or her hand while cutting upholstery for a couch. Different cases might include an allergic reaction from materials utilized as a part of your upholstery cleaning and maintenance services or even minor injuries such as wrist or ankle strains. These are altogether considered business related and the care the representative gets is secured under workers comp coverage.
Cyber Liability Insurance: If your upholstery business offers information and services to clients via the internet, then cyber liability insurance is must for your company. Operating a website can attract a significant amount of cyber crimes to your doorstep. The most common are identity theft and fraud. If any cyber crime were to involve your business, cyber liability insurance covers the litigation and other costs incurred.
Commercial Auto Insurance: Utilizing a vehicle for business errands is common with an upholstery shop. You may need to deliver completed furniture to your clients, pick up materials, and even using the vehicle to run other errands required. On the off chance that you or a worker is part of a car accident while driving for work purposes, damages and bodily injury are protected by the auto insurance.
Commercial Umbrella Insurance: Umbrella insurance is an additional liability insurance policy that is designed to help protect you from major claims and lawsuits. It is excess liability coverage that extends your liability limits on your underlying liability polices.
Reupholstery And Furniture Repair Risks & Exposures
Premises liability exposure can be moderate if customers visit the premises or are permitted in the processing area. There should be adequate aisle space, no frayed or worn spots on the carpet, and no cracks or holes in the flooring. The number of exits should be sufficient, well marked, and have backup lighting in case of power failure.
Fumes, spills, or leaks may result in bodily injury or property damage to neighboring premises. Off-site exposures are significant as drivers interact with customers in the pickup and delivery of items from customers' premises. Delivery persons should be trained in proper procedures to prevent premises damage such as fire.
Products liability exposures occur from the reupholstering and repair of furniture items. There should be a written contract outlining what happens if an item is unclaimed that allows the shop owner to sell it after a certain length of time. In such a case, if major reconditioning had taken place the upholsterer will have the same responsibility, as does a manufacturer.
Environmental impairment exposure can result due to possible contamination of ground, air, and water from the disposal of waste chemicals, stripping agents, foam, and other padding. Waste must be disposed of in an EPA approved method.
Workers compensation exposure can be high. Machinery injuries are common if guards are not in use, as are cuts, puncture wounds from stapling fabric to frames, slips, trips, falls, and repetitive motion injuries. Stripping and refinishing can result in eye, skin, and lung irritants. Cotton padding and stuffing can present serious lung injury and occupational disease exposures.
Workers should be aware of the toxic nature of any chemical and made fully aware of the need to watch for early signs and symptoms of problems. Back injury, hernia, and sprain and strain can occur from lifting heavy furniture items or holding them at odd angles to finish the upholstering process. Protective equipment should be worn.
Property exposures consist of an office, shop, and perhaps a warehouse for storage. Ignition sources include electrical wiring, heating and cooling equipment, and dust explosions as scraps from fabrics and textiles, dust, padding and stuffing materials are all highly combustible. The exposure increase in the absence of proper duct collection systems, ventilation, and adequate disposal procedures. Foam padding will not burn but will melt down or deteriorate into a thick, heavy, black smoke that may be toxic and hamper firefighting operations.
The amount of fabric on hand, the type and amount of padding and stuffing material, and the amount of scrap and old materials all add to the fire load. Fabrics are very susceptible to damage by fire, smoke, and water, so even a small fire could cause a total loss. If furniture repairs, stripping or refinishing is done on premises, the paints, varnishes, and solvents used increase the exposure to fire. Flammables need to be labeled, separated, and stored in approved cabinets and rooms.
Crime exposure is from employee dishonesty and money and securities, particularly if drivers collect payment at the time of delivery. Lack of control over pre-employment background screening, separation of duties, and reviews of procedures used at customers' premises increases the exposure.
Inland marine exposures include accounts receivable if the upholsterer offers credit, bailees customers, computers, and valuable papers and records for customers' and suppliers' information. The bailees customers' exposure starts when the furniture to be reupholstered or repaired is entrusted to an employee and ends when the furniture is returned to the customer. The furniture that is being repaired must be returned in better condition than when it was brought in or picked up.
The primary causes of loss are fire, theft, collision, overturn, and water damage. Hazards increase in the absence of adequate procedures, such as tagging or marking, to identify customers' goods. Security should be appropriate for the type of furniture being worked on. A tools floater may be needed if tools are taken off site to customers' premises.
Commercial auto exposure comes from the pickup and delivery service provided by most upholsterers. Drivers must have a valid driver's license and acceptable MVRs. They should be trained in proper loading and unloading techniques, which includes tying down. All vehicles must be well maintained with documentation kept in a central location. If vehicles are provided, there should be written procedures regarding the private use of these vehicles by employees and their family members.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7641 Reupholstery and Furniture Repair
- NAICS CODE: 811420 Reupholstery and Furniture Repair
- Suggested ISO General Liability Code(s): 99827, 99826
- Suggested Workers Compensation Code(s): 9521, 9522
Upholstery Shop Insurance
Acquiring a tailored upholstery shop insurance policy for your upholstery business is a must. It protects you against unexpected damages and litigation that might occur out of the blue.
Small Business Economic Data & Insurance Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. Maybe you want to contribute to the economic growth of your community. Whatever the reason is, if you're thinking about starting a small business, it's important to understand pertinent information relating to small businesses in the United States; namely economic information and insurance regulations. After all, if you want your small business to succeed, you have to understand the economic trends organizations of a similar size in your area.
Likewise, you want to ensure that your small business is well protected with the right business insurance and that you are in compliance with the rules and regulations that pertain to commercial insurance in your region.
Read up on economic statistics and insurance information that relates to small business owners in the United States.
Small Business Economic Data In The United States
Here's a look at some information that was compiled by the Small Business Association (SBA) regarding the economic data that pertains to small businesses in the United States:
- In 2015, small businesses in the United States employed an estimated 58.9 million American workers, or 47.5 percent of the nation's private workforce.
- Largest shares = fewer than 100 employees. The small businesses that employed 100 people or less had the largest share of employment amount small businesses.
- Employment increased by nearly 2 percent. In 2018, employment amongst small businesses increased by 1.8 percent, which is an increase of 1 percent from the prior year.
- Increase in proprietors. In 2016, the number of small business proprietors increased by 2.3 percent.
- In 2015, small businesses were responsible for creating 1.9 million net jobs. Organizations that employed 20 people or less had the largest gains, as they added an estimated 1.1 million net jobs.
- There were 5.7 million loans that were value less than $100,000 issued by lenders in the United States in 2016. These loans were issued under the Community Reinvestment Act.
- Small business owners that were self-employed at the incorporated businesses that they owned reported a median income of $50,347 in 2016.
- Small business owners that were self-employed at the unincorporated businesses that they owned reported a median income of $23,060 in 2016.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage. The SBA recommends the following insurance plans for small business owners:
- Commercial Property Insurance: In the case of an unplanned disaster - fire, flood, vandalism, theft, etc. - this type of coverage will help you avoid paying for the damage out of your own pocket. Even if you rent the property, you should still carry commercial property insurance.
- Commercial Liability Insurance: In the event that a legal situation arises - a negligence lawsuit, for example - commercial liability coverage will provide financial protection. It will cover the cost of legal defense fees, court fees, and even moneys that may be awarded.
- Commercial Auto Insurance: If you operate a vehicle for any activities that are related to your business - transporting and/or delivering goods, or meeting with clients - commercial auto insurance is legally required for businesses of all sizes, including small businesses.
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
- Blacksmith & Metal Workers
- Builders Risk
- Building Cleaning & Maintenance Services
- Cable And Satellite TV Installer
- Chimney Sweep
- Contractor Liability
- Curtain Cleaners
- 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
- House Cleaning
- HVAC Contractor
- Insulation Contractor
- Janitorial Cleaning Services
- Lawn Care
- 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
- Swimming Pool Contractor
- 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.