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Locksmith Liability Insurance: Cost & Quotes From $11

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As a locksmith, you bail people from small misfortunes that can quickly snowball into their worst days. In short, you are the go-to professional when homeowners and business owners make the silly mistake of locking their keys in their properties. On the other hand, when a single apartment tenant requires a lock upgrade, they rely on you to provide the solutions that give them peace of mind. Whatever the services you provide your clients, your job is critically important. 

 

Locksmith services don't go as always planned, and instead of your client breathing a sigh of relief, they might shift the blame for their mistakes to you. There's always the risk of damaging the lock you're working on, and that's when you realize that your work is not always bells and jingles. 

 

You need to protect your business from liabilities by taking out locksmith insurance. You may be a pro in what you do, taking all the necessary measures to ensure that every project goes as planned, but a smart locksmith is always prepared for the unexpected. 

 

A locksmith insurance policy protects your business from financial losses resulting from lawsuits that clients file against your company due to damaged property and bodily injuries. The insurance also covers costs for employee injuries, commercial auto accidents, stolen equipment or tools, and other unanticipated incidents.

Locksmith Liability Insurance

Businesses are exposed to many risks. Locksmith liability insurance is a critical business insurance policy, regardless of industry. This business insurance policy protects your locksmith service business from third-party risks, such as a client tripping over your toolbox and dislocating their wrist.

Most insurance carriers offer general liability coverage to protect locksmiths from the following risks:

  • Third-party bodily injury – When working on a client's door, you constantly pry and do other things, utilizing various equipment and tools. It's sometimes challenging to keep track of where the property owner (or their kid or pet) is. Should you unintentionally injure your client or another person, they might hold you responsible for their injury and medical bills

  • Third-party property damage – As a locksmith, you work on clients' premises. If you damage the lock or the door hinges from the frequent tweaking of the mechanism, they could demand that you pay for the repair or replacement costs

  • Legal defense fees – If a client sustains a serious injury or you damage the door on the verge of unlocking a faulty lock, you might be sued in a court of law. You wouldn't want a lawsuit to compromise your business's financial stability. Your general liability insurance provides the funds needed to get legal representation to fight the case

You can add optional policies so that general liability insurance provides more comprehensive protection. These optional policies are:

  • Advertising injury coverage

  • Rented premises liability coverage

  • Products and completed operations coverage

The locksmith service you completed might have caused personal injuries or property damage. Products and completed operations coverage takes care of this eventuality. In a nutshell, you can use this insurance to pay for defense costs and settlements if ever a past client sues for personal injuries and property damage.

Rental contracts explicitly state that the one renting will be responsible if the space becomes damaged or destroyed. If you’re renting a commercial space for your locksmith business, it will hurt a lot if you use personal money to reimburse the losses of the landlord. This is why you should get rented premises liability coverage that will take care of everything on your behalf.

Someone might sue your business for slander, libel, false advertising, or copyright infringement. Claims resulting from these are very problematic to solve. That said, don’t underestimate how useful advertising injury coverage is. Advertising injury coverage takes care of settlements and defense costs if third parties file a slander claim, libel claim, false advertising claim, and copyright infringement claim against your business.

Locksmith Public Liability Insurance vs Locksmith General Liability Insurance

Some insurance companies don’t cover locksmiths with general liability insurance but instead offer public liability insurance. How do the two differ? Which one provides better protection?

General liability insurance and professional liability insurance don't differ a lot in terms of what’s covered. Both will take care of personal injury claims and property damage claims against your business.

But the difference lies in comprehensiveness. Of the two, general liability is the more comprehensive; public liability, the least comprehensive. Remember that general liability insurance can be added with optional policies for added protection. This is a feature that public liability insurance doesn’t have, it is what it is.

So if you only want coverage for third-party personal injury claims and property damage claims, get public liability insurance. On the flip side, purchase general liability insurance if you want an insurance policy that offers more protection.

Compare Cheap Locksmith Liability Insurance Quotes Online

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Other Insurance Policies Locksmiths Need

You never know when your equipment may be stolen or your commercial vehicle might be involved in a collision. In another misfortune, your employee might injure their hand while trying to unlock a door. That's why it's critical to have additional policies, so you can work peacefully knowing all your business risks are covered. 

 

Besides general liability coverage, the following are other insurance policies that locksmiths should have.

 

Commercial Property Insurance

Keeping track of your business's tangible assets is essential - your business building, equipment and tools, computer systems, and other valuables. And so, aside from liability policies, you should also invest in commercial property insurance. 

 

If fire or extreme weather destroys your business’s commercial space, commercial property insurance covers reconstruction expenses.  What if fire, extreme weather, and other covered perils only damaged the commercial space? In this case, commercial property insurance will still provide coverage and will pay for repair costs. 

 

Commercial property insurance doesn’t only take care of your locksmith business’s building. This insurance policy has business equipment and tools coverage. Business equipment and tools coverage will reimburse your losses if locksmith equipment and tools got damaged or lost within the premises of the commercial space due to fire, theft, vandalism, and other covered perils. 

 

How about other valuable items not considered as tools and equipment for locksmithing? Commercial property insurance also covers those through its stocks and contents coverage. Stocks and contents coverage will reimburse losses if your locksmith business’s tables, chairs, appliances, and other related valuable items become damaged or lost due to fire, theft, vandalism, and other covered perils. 

 

Workers' Compensation Insurance

Most states require locksmith businesses with employees to have workers' compensation insurance. If a member of your team gets injured while on the job, workers' compensation insurance covers their emergency treatment, hospitalization, and rehabilitation.  Furthermore, if the injury incapacitates them from returning to work right away, the insurance provides employee benefits to cover lost income. 

 

We won’t sugarcoat it. Workers' compensation insurance is expensive. But still, decide to get this one as locksmithing accidents are real and apparent. Here are some reports taken from the Occupational Safety and Health Organization:

  • At 7: 40 a.m, a locksmith was providing a service at a towing office. He is adept at opening different locks such as those of homes and vehicles. After resting on his vehicle, he woke up and went to the back of the worksite. He lost consciousness while on the way and later died. Responders attributed his death to natural causes

  • A locksmith was working on the exterior north building section of the Peterson lobby. He was repairing an electronic entryway used by handicapped individuals as an entrance and exit. He fell off his ladder while working. The incident resulted in a fractured ankle. The locksmith was taken to the nearest hospital after the incident


What Will Happen If You Don’t Get Workers Compensation Insurance for Your Locksmith Business?

Choose not to get workers' compensation insurance and you’ll face stiff penalties from the workers' comp department or the labor department of the location where your business is located or registered. The penalty can be a fine or a period of imprisonment. It all really depends on where your business is. Here are some examples:

  • Maine -  Locksmith businesses without workers comp insurance will pay a civil penalty of up to $10,000 or up to an amount equal to 108% of the premium, calculated using Maine Employers' Mutual Insurance Company's discounted standard premium.

  • Utah -  Failure to get workers comp will award the following penalties to locksmith businesses; A $1,000 penalty and “loss of exclusive remedy”, a type of legal protection that prevents employees from suing employers for work-related injuries or illnesses

  • Maryland - Locksmith businesses with no worker's compensation insurance will face a fine not exceeding $10,000

  • Montana - Light offenses involving the failure to get workers' compensation will be fined a fixed $200. However, if the nature of the violation is severe, authorities will require the locksmith business to pay twice the amount that would've been paid for premiums. For example, if buying workers comp costs $300 and the employer isn’t covered, then the fine will be $600

  • Idaho - Locksmith businesses that refuse to get workers' compensation insurance will be fined $2 up to the number of uninsured employees or $25 up to the number of days the you didn’t purchase workers' compensation insurance 

 

Commercial Auto Insurance

Your clients don't remove their doors and bring them to your commercial premise. You go to their homes and businesses. That means you use a commercial utility van to transport the necessary work equipment and gear. 

 

Commercial auto insurance takes care of exposures related to the use of a commercial vehicle. 

 

If your locksmith business’s commercial vehicle causes an accident, commercial auto insurance will pay for the treatment of injured parties and will reimburse those who had their property damaged. Remember though that commercial auto insurance can’t help if the accident happened because the driver was DUI or engaged in any other criminal activity. 

 

Your locksmith business’s commercial vehicle might get damaged sooner or later. The second job of commercial auto insurance is to take care of parts repair or replacement. Commercial auto insurance has collision and comprehensive physical damage coverage. 

 

Collision physical damage coverage will pay for parts repair or replacement if the commercial vehicle got damaged after colliding with an object or another vehicle.  In contrast, comprehensive physical damage coverage will pay for parts repair or replacement if the commercial vehicle was damaged because of fire, theft, vandalism, and other covered perils. 

 

The third job of commercial auto insurance is to take care of the injuries to the passenger and driver. Commercial auto insurance has personal injury protection or medical payments coverage. Personal injury protection and medical payments coverage will pay for the hospitalization, medical treatment/procedure, and rehabilitation of the driver and passengers who experienced injuries after the commercial vehicle's involvement in an accident. 

 

Contractor's Equipment and Tools Insurance

Equipment and tools coverage covers your locksmith equipment that incurred damage on-site or off-site. The coverage pays for the replacement and repairs of your work tools (pick guns, key extractors, and other tools) if they get damaged or stolen. It also offers reimbursement for rental equipment as you await the settlement of your insurance claim. 

 

Professional Liability Insurance

This insurance policy is also called errors and omissions insurance (E&O). With this, you can cover the legal expenses if a client sues your locksmith business for professional errors, such as:

  • Violation of good faith

  • Misrepresentation

  • Violation of good faith

  • Negligence claims

  • Missed deadlines

 

Commercial Umbrella Insurance

If your liability coverage limit gets exhausted following the settlement in a lawsuit, you'll have to cover the remaining compensatory amount on your own. That can significantly dent your business' financial resources. Commercial umbrella insurance can step up in such a situation to go beyond your liability policy limit to protect your business.

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Locksmith Insurance Cost

Locksmith insurance coverage costs vary from business to business. But expect to pay $63 per month or $756 per year for professional indemnity insurance. Your premium depends on the provider you choose, as well as other variables that include:

  • Business location

  • Crew size

  • Your chosen coverage limit and deductible

  • Business assets and equipment 

  • Types of insurance policies you purchase

  • Business income

  • Term duration

 

Here’s a table showing the pricing of the best companies for locksmith insurance:


Cost per MonthCost per YearBest for
CoverWallet$60.87$730.44Locksmith insurance quotes comparison online
Thimble$64.12$769.44Locksmith businesses searching for temporary commercial insurance

 

 

Typically, locksmith businesses in the US pay a medium monthly premium of less than $61 or $732 per year for a $1 million general liability coverage. However, we recommend purchasing a  Business Owner's Policy (BOP)  instead of buying a single general liability coverage policy. A BOP bundles public liability and commercial property insurance in a single policy offering cost-saving opportunities, unlike purchasing both policies separately. 

 

Most locksmiths and other contractors choose general liability with a $2 million aggregate limit and a $1 million per-occurrence coverage limit. As your business expands, it would be best to increase your policy limits to provide adequate coverage.

Compare Cheap Locksmith Liability Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Locksmith Insurance Companies 

Many insurance companies provide plans for most service contractors, but not all offer locksmith-focused insurance products. If you want to purchase locksmith business insurance, it is critical to partner with a reputable carrier that can write tailored insurance plans to cover your unique business risks.  Read the reviews below to know the best carriers' pros, cons, and monthly pricing for a $1 million general liability coverage. 

 

CoverWallet Locksmith Insurance

 

Pros

  • Cancel a policy anytime

  • A partner of reputable insurance companies

  • Get general liability insurance having products and completed operations coverage

  • Decide yourself what insurance to get through a custom plan

Cons

  • Not an insurance company but an insurance broker

 

CoverWallet is an insurance broker that customizes the quotes of its partners to offer tailored locksmith insurance for customers. This company’s locksmith insurance comes in four types - general liability only, general liability and commercial property insurance, business owner’s policy with workers compensation insurance, and a custom plan.

Use CoverWallet’s online quotes comparison platform to look at the offers of other companies that cover locksmiths. Also, you won’t experience any inconvenience with this company because you can pay premiums, manage policies, and get a certificate of insurance online. 

 

Best for: Locksmith insurance quotes comparison online

Average cost: $60.87 per month

Our rating: 10/10

 

Thimble Locksmith Insurance

 

Pros

  • Free and fast online insurance quotes

  • Provides hourly, daily, or monthly coverage

  • Free insurance certificates

Cons

  • Clients can only get file a claim and contact customer support online

 

Thimble is an online insurance broker founded in 2015 and headquartered in New York. It's not an insurance company, but it partners with third-party providers who underwrite insurance plans. If you're looking for temporary coverage expedited within minutes, it is best to partner with Thimble.

 

Suppose you're a part-time locksmith, own a small business, or get last-minute contracts; Thimble provides flexible, easy-to-purchase insurance plans for hourly, daily, or monthly contracts. That's convenient because you need not spend more money on long-term coverage, yet you only need an insurance policy to complete a short-term project. 

 

Thimble provides a wide range of locksmith insurance policies, including general liability, commercial property insurance, E&O, BOP, workers' compensation, and inland marine insurance. The only downside is that New York-based locksmiths might not purchase most of these coverage plans. Besides, you can only file claims by email or phone. 

 

Best for: Locksmith businesses searching for temporary commercial insurance

Average cost: $64.12 per month

Our rating: 8/10

 

Get Covered, Be Free From Risks, and Unlock Your Business’s Income Generating Potential

If you're shopping for business insurance for your locksmith services, take time to use our online quotes comparison platform. You can compare locksmith insurance quotes online by clicking the "Get Quotes " button at the top of this page to get the cheapest plans from the top carriers. 


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