Locksmith Insurance

A comprehensive locksmith insurance policy typically includes the following coverages:

• Commercial General Liability (CGL) Insurance: GCL, or general liability insurance, covers locksmiths for third-party bodily injury or property damage claims that may arise from your daily operations. For example, if a customer accuses you of damaging their property after installing new door locks or a CCTV security system, CGL may pay for those damages and provide you with funds to defend yourself in court if you’re sued.

• Commercial Property Insurance: Commercial property insurance is designed to protect your business property, its contents and inventory if damaged by water, fire, a natural disaster, theft, or vandalism. This type of coverage usually includes business interruption insurance to cover your operating expenses and lost income if you’re forced to temporarily close your business for repairs following an insurable loss, like a fire. You can add it to your policy if it’s not automatically included.

• Professional Liability Insurance: Also known as errors and omissions (E&O) insurance, professional liability insurance protects you from professional negligence claims. Allegations of giving poor advice, misconduct, failing to deliver a service as promised, and making errors in your work that cause a customer financial harm can potentially lead to a lawsuit. Professional liability insurance can help cover your legal expenses and a customer’s economic damages.

• Tools and Equipment Insurance: The tools and equipment locksmiths use are essential (and expensive). Tools and equipment insurance may pay to repair or replace them if damaged by fire or water, lost, stolen, or vandalized. It’s wise to include a tool floater endorsement to your policy to cover the tools you use while mobile.

• Cyber Liability Insurance: No independent locksmith or small business is immune from cybercrime. Cyber-attacks and data breaches that compromise your and your customers’ confidential information can happen at anytime without warning. You can be held liable if your customers’ data is compromised or stolen through a ransomware or phishing attack. Cyber liability insurance is designed to help locksmiths recover from such events. It provides coverage to restore system and software damage, legal advice, notification and credit monitoring expenses, and losses sustained to a system outage following a cyber-attack.

• Commercial Auto Insurance: The business vehicle or utility van you use to travel to customers’ locations requires commercial auto insurance. Private-passenger car insurance is unlikely to cover damages to vehicles that transport people, tools and equipment, and materials for business purposes.