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.
Below are some answers to commonly asked upholsterer insurance questions:
- What Is Upholstery Shop Insurance?
- How Much Does Upholstery Shop Insurance Cost?
- Do You Need Upholstery Shop Insurance?
- What Type Of Insurance Do Upholsters Need?
- What Does Upholstery Shop Insurance Pay For?
What Is Upholstery Shop Insurance?
Upholstery shop insurance is a type of insurance coverage designed specifically for businesses that specialize in the repair, restoration, and creation of upholstery and other soft furnishings. This type of insurance typically covers risks such as property damage, liability, and theft, as well as any damage or loss incurred during the upholstery process. It may also provide coverage for business interruption and income loss in the event that the upholstery shop is temporarily unable to operate due to a covered event.
Upholstery shop insurance is an essential form of protection for business owners, helping to protect their assets and ensure that they can continue to operate even in the face of unexpected events or losses.
How Much Does Upholstery Shop Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small upholstery businesses ranges from $37 to $59 per month based on location, size, payroll, sales and experience.
Do You Need Upholstery Shop 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.
What Type Of Insurance Do Upholsters Need?
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.
What Does Upholstery Shop Insurance Pay For?
Upholstery shops may face various types of lawsuits, some of the common reasons are:
Property damage: If a customer's property gets damaged while in the care of an upholstery shop, the shop may be held liable for the damages. For example, if a customer's sofa is damaged during the upholstery process, they may file a lawsuit against the shop.
Insurance coverage: Commercial General Liability Insurance (CGL) can provide coverage for property damage claims. This type of insurance can help pay for the costs of repairing or replacing the damaged property, as well as any legal fees associated with defending against the claim.
Bodily injury: If a customer or employee is injured on the upholstery shop's premises, the shop may be held liable for the injuries. For example, if a customer trips and falls over a piece of equipment, they may file a lawsuit against the shop.
Insurance coverage: CGL insurance can also provide coverage for bodily injury claims. This type of insurance can help pay for medical expenses and lost wages for the injured party, as well as any legal fees associated with defending against the claim.
Product liability: If a customer is injured as a result of a defective product or workmanship, the upholstery shop may be held liable for damages. For example, if a customer's newly upholstered chair collapses, causing them to fall and injure themselves, they may file a lawsuit against the shop.
Insurance coverage: Product Liability Insurance can provide coverage for product liability claims. This type of insurance can help pay for damages caused by defective products or workmanship, as well as any legal fees associated with defending against the claim.
Professional liability: If an upholstery shop makes an error during the upholstery process that results in a customer's dissatisfaction, the shop may be held liable for damages. For example, if a customer's upholstery is not completed correctly or on time, they may file a lawsuit against the shop.
Insurance coverage: Professional Liability Insurance, also known as Errors and Omissions (E&O) Insurance, can provide coverage for professional liability claims. This type of insurance can help pay for damages caused by errors or omissions, as well as any legal fees associated with defending against the claim.
In conclusion, Upholstery shops can be protected from various types of lawsuits by having the right type of insurance coverage. By having insurance, the shop can reduce the financial burden of defending against a lawsuit and paying for damages. However, it is essential to ensure that the policy provides adequate coverage for the specific risks faced by the upholstery shop.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7641 Reupholstery and Furniture Repair
- NAICS CODE: 811420 Reupholstery and Furniture Repair
- Suggested Workers Compensation Code(s): 9521 House Furnishings Installation NOC & Upholstering, 9522 Upholstering
7641: Reupholstery and Furniture Repair
Division I: Services | Major Group 76: Miscellaneous Repair Services | Industry Group 764: Reupholstery And Furniture Repair
7641 Reupholstery and Furniture Repair: Establishments primarily engaged in furniture reupholstery and repair. Establishments primarily engaged in selling upholstery materials for personal or household consumption are classified in Retail Trade, Industry 5714; and those making furniture and cabinets on a custom basis are classified in Retail Trade, Industry 5712.
- Antique furniture repair and restoration
- Furniture refinishing
- Furniture repairing, redecorating, and remodeling shops
- Repair of furniture upholstery
- Reupholstery shops
Upholstery Shop Insurance - The Bottom Line
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.
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
- Boat Repair & Dry Docks
- Boiler Contractors
- Builders Risk
- Building Cleaning & Maintenance Services
- Cabinet Installer
- Cable And Satellite TV Installer
- Chimney Sweep
- Cistern Contractors
- 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
- Furniture Repair
- Garage Door Installer And Repair
- General Contractors
- Glass Contractor
- Glazier Insurance
- Gutter Installation And Repair
- House Cleaning
- HVAC Contractor
- Insulation Contractor
- Janitorial Cleaning Services
- Lawn Care
- Lawn Irrigation Sprinkler System Installation
- Oil And Gas Well Drilling Contractors
- 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
- Tank Cleaners
- Tool Grinding And Repair
- Tree Surgeon
- Tree Trimming
- Upholstery Shop
- Waste Haulers & Garbage Collection
- Water Well Drilling
- Welding Contractor
- Wildlife & Pest Control
- Window Cleaning
- Specialty Contractors
The contracting industry is a field that involves a lot of risks, both for the contractor and for the clients they work for. This is why commercial insurance is so important for contractors. Insurance can protect contractors from a variety of potential losses, such as:
Liability: If a contractor causes damage to a client's property or if a client is injured while on a job site, the contractor could be held legally responsible. Liability insurance can cover legal fees and any settlements or judgments that may be awarded.
Property damage: Contractors often use a lot of expensive equipment and tools, and there is always a risk that this equipment could be damaged or stolen. Commercial property insurance can help cover the cost of replacing damaged or stolen equipment.
Business interruption: If a contractor is unable to work due to an unforeseen event, such as a natural disaster, insurance can help cover their lost income during this time.
Workers compensation: If a contractor or one of their employees is injured on the job, worker's comp can help cover medical expenses and lost wages.
Overall, commercial insurance is an important risk management tool for contractors. It can provide financial protection against a wide range of potential losses, helping contractors to stay in business and continue serving their clients.
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.