Due to the sensitive nature of their work, locksmiths are held in high regard in the community as trustworthy and reliable individuals. Installing and rekeying locks and copying keys, whether for a property owner, not only requires precision and accuracy, but a locksmith must do all possible to safeguard the locks and keys in their possession from theft and other losses.
To minimize their exposure to these and other risks, locksmiths must carry commercial insurance coverage to protect their personal and business assets and professional standing in the community.
The Importance of Locksmith Insurance in St. Petersburg, FL?
The locksmith profession faces unique challenges that a standard business owner's policy cannot fully cover. Because you are handling security systems and keys to private property, any mistake, from a faulty installation to a claim of negligence, can lead to a costly lawsuit. A client could sue you if a new lock fails due to negligence and their property is burglarized, or if they allege you failed to properly vet an employee who later committed a crime using a copied key. There are also other business risks, such as employee injuries, damage to client property, or equipment theft at your place of business or out in the field. Having the right insurance is essential for protecting your livelihood and professional reputation.
What Insurance Covers Locksmiths?
To ensure complete coverage, locksmiths should consider the following types of policies:
Commercial General Liability (CGL) Insurance
CGL is a standard policy that insures your locksmith business against third-party claims resulting from bodily injury or property damage. For example, if a client trips over your toolbox and falls, or if you accidentally damage a wall while installing a new security system, CGL would cover the cost of the claim, less the deductible, up to the limits of your policy.
Errors & Omissions (E&O) Insurance
E&O is another essential policy for locksmiths. It covers claims alleging professional negligence, errors, or omissions in the services you provide. For instance, if a client sues you because a lock you installed failed to secure their property, or if they allege a key you made was faulty, this policy will pay your legal fees and any settlements or judgments.
Commercial Auto Insurance
When you use a vehicle to transport your tools and travel to client sites, commercial auto insurance is essential to protect your work van from accidents, theft, or damage.
Inland Marine Insurance
Also known as tools & equipment insurance, it provides coverage for your valuable mobile equipment, such as key cutting machines, specialized tools, and accessories. It covers losses from theft or damage while you are traveling to a customer or while stored in your vehicle overnight.
Workers' Compensation
If your locksmith business has four or more employees, Florida law requires you to carry a workers' comp policy. It covers medical bills, wage replacement, and other benefits for an employee who is injured in your retail store or at a job site.
What’s Covered
A typical commercial insurance package for locksmiths in Florida would cover:
- Third-Party Bodily Injury: Pays for medical costs and legal fees if a client, visitor, or bystander is injured on your property or at a job site as a result of your business operations.
- Third-Party Property Damage: Covers the costs of repairing or replacing a client's property that is damaged by your business.
- Professional Negligence: Legal defense and settlement costs for claims that you made a mistake or failed to perform a service correctly.
- Theft or Damage to Equipment: Inland marine insurance covers the theft or damage of your mobile equipment and tools while they are at a job site or in your vehicle.
- Legal Fees: Pays for legal expenses, including attorney fees and court costs, in the event of a lawsuit, even if the claim is unfounded.
What’s Not Covered
- Damage To Your Business Property
- Performing an act that violates the law
- Business Health Insurance
- Personal Auto Insurance
Other Coverage Options for Locksmiths
Talk to your CIS agent about other insurance options that your business may need, such as:
- Commercial Property Insurance provides coverage for your store, office space, and tools and equipment stored at your business location from risks like fire, theft, and vandalism.
- Commercial Umbrella Insurance offers additional liability protection for larger claims that are above the limits of your existing commercial policies.
Best Commercial Insurance for Locksmiths Near Me
At Commercial Insurance Specialists, we pride ourselves on being a Trusted Choice independent agency committed to delivering outstanding results with custom insurance solutions for locksmiths in the Southwest and Central Florida areas. We serve a range of professions, including plumbers, architects, and landscapers, from Sarasota County to Polk County, including Lakeland, Pinellas Park, Brooksville, and Bartow.
Reach out to CIS, and one of our licensed independent agents will not only assist you in finding the best rates and coverage options for your locksmith business but also provide professional guidance and support. Contact us today for a complimentary, no-pressure quote on professional liability insurance!
