While locks and other security measures may change over time, the need for someone to install, maintain, and update them will not. As a locksmith, you provide a variety of services for your customers. If someone is locked out of their home, business, or car, they call you. If they’ve had some security issues and need to replace or upgrade their lock systems, you can help. And for new homeowners or renters who simply need an extra set of keys, you can do that, too. While this wide variety of jobs is good for your ability to bring in income, it also presents different kinds of risks. The best way to protect yourself and your business is with a wide-ranging locksmith insurance policy. This guide will provide you with all the information you need about locksmith insurance costs to assemble the right insurance package to meet all your needs.

We Cover in This Guide

• How much does locksmith insurance cost?

• What is locksmith insurance?

• What does locksmith insurance cover/not cover?

• Benefits and risks

• Types of insurance you may need

• Tips for buying

• FAQ

• Summary

How Much Does Locksmith Insurance Cost?

Locksmith insurance costs range from $39 to $49 per month depending on your provider, risks, coverage, limits, location, service, number of employees, sales, and experience. Below are some examples of typical insurance packages offered by many providers.

- Basic coverage (meets the minimum needs of your business):  $39 per month for general liability insurance

- Standard coverage (additional protection for your equipment, assets, and property):  $49 per month for general liability insurance + commercial property insurance; these can be bundled into a business owners policy

- Professional coverage (also covers employee injury and illness):  $49 per month for business owners policy + workers’ compensation insurance

Most insurers will allow you to customize a policy with additional coverage to meet your needs.

What is Locksmith Insurance?

Locksmith insurance is a type of policy designed to protect your business against the various potential liabilities involved in the services you provide. These risks could be damage to your own equipment that could result in lost income; damaging a customer’s vehicle while attempting to open it; a client tripping over your equipment and breaking their arm; or an employee injuring their hand while installing a new lock. The costs of these risks and harm to your business can be very significant. Locksmith insurance is essential for anyone in the industry. 

What Does Locksmith Insurance Cover/Not Cover?

Typical locksmith insurance policies cover the common risks you may face in your work. They can include:

Premise liabilities:

• Third-party bodily injury

• Third-party property damage

• Personal injury

• Completed services

Property liabilities:

• Damage, theft, or breakdown of business assets, equipment, and property

• Personal injury

• Lost business income

Employee liabilities:

• On-the-job injury and illness

• Medical expenses

• Lost wages

There are certain scenarios that are not included in the common policies offered, but can be added for an additional cost. Below are some examples.

• Damage to your equipment while being transported to a work site

• Accidents in your personal or company-owned vehicles

• Your recommended security system still results in a client’s home being burglarized

Benefits and Risks

As we just discussed, locksmith insurance will protect your business against numerous risks, but those are not the only benefits. 

In addition to being trained and certified, many clients (both individuals and businesses) require that a locksmith have a certain level of coverage before hiring them for a job. Having adequate coverage may give you an advantage over other people who provide similar services and could increase your business. 

The biggest potential liability you could face is a lawsuit. It’s time-consuming and costly to defend against, and potentially harmful to your ability to generate new business. And that’s even if you prevail. If you lose, there is also the cost of damages. Without coverage, these liabilities can potentially wipe out your earnings and, depending on the structure of your business, even your personal finances. Few companies can afford to pay these things out of pocket. Locksmith insurance covers all these expenses and will allow you to focus on the more important things, like your business.

Types of Insurance You May Need

• General Liability Insurance:  This coverage protects you from injury, accident, or property damage claims, and pays associated costs and expenses.

• Commercial Auto Insurance:   Protects your business from liabilities related to damages and injuries while driving business-owned vehicles.

• Commercial Property Insurance:  Covers damage to and/or theft of business property, assets, and equipment from covered scenarios.

• Workers’ Compensation Insurance:  Pays for medical expenses, rehab, and lost wages for employees who get sick or injured while working for your company. 

• Professional Liability Insurance:  Protects you against claims of damage as a result of a professional mistake or error.

• Cyber Liability Insurance:  Covers data breaches, hacks, and other cyber attacks that lead to losses or harm.

Tips For Buying

When considering locksmith insurance cost, keep the following in mind before making your final decision:

• Work with an independent agent. They have knowledge about the industry that goes beyond an online search and will help direct you toward providers with the best rates and the most experience in your field. 

• Thoroughly analyze your services, employees, and clients to identify potential risks. If your speciality involves providing services that may result in damage to client property, you want to make sure to choose a policy that properly protects yourself from those potential liabilities.

• Consider bundling your insurance needs with a business owners policy (BOP). Many providers will discount your rate when you combine certain coverage like general liability and commercial property.

FAQ

- I’m concerned about my equipment being damaged or stolen while I’m taking it to a customer’s car or house. What can I do?

Consider inland marine insurance. It covers your own property, and that which you are responsible for, while it is being transported from one covered location to another.

- What does it mean to be “bonded and insured”?

It means that your business has taken measures to protect itself and its clients by obtaining a surety bond and minimum insurance coverage.

- How do I cover my personal vehicle when I drive to job sites?

Get non-owned and hired auto insurance. It protects your business from claims related to damages or injuries from accidents while performing business-related tasks in a personal vehicle.

Summary

If you face a large enough claim, it can potentially destroy your locksmith business before it even has the chance to succeed. Comprehensive locksmith insurance will protect you if you ever deal with such a scenario.

Now that you have a greater understanding of locksmith insurance cost, you can feel confident in your search for the best policy to cover your needs.