Different locksmiths operate with different business models. Where some opt to offer services from a set business premises, others will respond to calls from customers in need of more urgent help, while many do both.
Whichever way you work, it is important to make sure you’re protected against the risks you face by purchasing an insurance for locksmiths policy that meets your needs. No matter how careful or experienced you are, your business can still be vulnerable to a range of threats, accidents and unexpected events. Purchasing a locksmiths insurance package based on the make-up of your business can provide protection and security against the costs that can potentially result from many of these risks.
Some of the key forms of cover you may be offered as part of a locksmiths insurance policy include:
- Public liability insurance:
Public liability insurance can provide protection against claims made against you by third parties that your business has caused them to suffer illness or injury – or caused damage to their property. As you’ll be working regularly with members of the public, this cover is typically offered as a standard feature of most locksmiths insurance policies, and often includes compensation for third-party property damage and other legal costs.
- Professional indemnity insurance:
As you provide a professional service – and may also offer advice – professional indemnity (PI) insurance can come in handy. Whether you’re simply making replacement keys or advising a customer about different security measures, PI insurance can provide financial protection if a customer claims your service or advice has caused them to suffer material, physical or financial loss.
Some insurers include an option to add indemnity to principals insurance, and your customer may ask you to include this cover in your locksmiths insurance package before agreeing to hire you. This cover can provide protection for your customer if you are found to be negligent in your work, and your customer is subsequently sued by their own client or customer. In this way, the policy regards claims made against your customer as if they were made against yourself.
For more information, visit our what is professional indemnity page.
- Product liability insurance:
Product liability insurance can prove useful if you have to defend against claims that a product you have sold or supplied – be it locks, keys or other security products – has caused your customer to suffer injury or caused damage to their property.
In a similar vein, efficacy insurance can provide protection if a system you have installed subsequently fails and it is found that the failure occurred as a direct result of your installation.
- Employers’ liability insurance:
Legally required if you employ any type of staff, employers’ liability insurance can provide financial protection if you need to defend against claims from your employees that working for you has caused them to suffer illness or injury. This cover will often need to be extended if you’d like to include temporary employees.
You may also consider purchasing employee dishonesty insurance, which can provide compensation if you lose revenue or business due to the fraudulent acts of an employee.
- Buildings and contents insurance:
If you are based in a business premises, you may consider buildings insurance which can provide financial assistance if the main structure of the building and its fixtures and fittings are damaged and need repair. If you rent your business premises, your landlord will probably have arranged buildings insurance – make sure you check with them to confirm.
You may also consider contents insurance which can provide financial assistance to repair or replace your business contents after damage, theft or loss. Items covered can include your office furniture, computers and portable equipment, stock and raw materials, and the tools of your trade.
- Tools insurance:
While your contents insurance can provide cover for your tools, it may be beneficial to purchase tools insurance separately. This cover can help with the cost of repairing or replacing tools and equipment that are lost, damaged or stolen. Tools insurance usually covers portable, hand-held equipment, so if you use larger plant and machinery in your work you may consider extending your policy to include owned and hired plant and machinery insurance.
You may also consider goods in transit insurance which can provide financial protection for your tools, equipment, raw materials and stock while they are being transported from site to site. If you travel regularly for work, you will need vehicle insurance which can provide financial assistance after an accident or in the event of damage to your vehicle – or if the items within it are stolen.
- Cash on premises cover:
This cover can provide protection for your business money in the event of theft. Cash on premises cover typically includes money kept in cash registers, your wallet, in or out of safes and in transit to and from the bank. Insurers may offer personal assault cover alongside this policy, which can provide help with medical bills if you or an employee is assaulted during a theft or attempted theft.
- Contract works insurance:
Contract works insurance is also known as Contractors All-Risks (CAR) insurance, and can come in handy if the building you are working on becomes damaged due to unexpected incidents that affect the work you have been hired to do. Contract works insurance can provide financial assistance with any repairs that need to be carried out because of such incidents, and compensation for any replacement materials you may need to purchase.
- Business interruption insurance:
Business interruption insurance can prove useful if you find yourself unable to operate at full capacity due to events that have been covered in your insurance policy. This cover can provide compensation for any loss of revenue you experience, and any increased costs of working such as hiring replacement tools or staff, or moving to a temporary business location.
- Personal accident insurance :
Personal accident insurance can prove essential for any self-employed professional. This cover can provide financial assistance with any loss of revenue you experience because you have become seriously ill or injured and are unable to work. This cover may also pay medical bills and the cost of making adaptations to your home or place of business.
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