Workshop Insurance: Cost & Quotes From $7

Suppose you run a workshop. In that case, you need workshop insurance to cover a number of risks you might face.They include injury to visitors and members of the public, loss and damage or theft of equipment. This specialty cover offers protection against legal fees and compensation costs. If employees and third parties were to make a claim against you or your business if, for instance, they were involved in an accident at the workshop. 

Understanding Workshop insurance

Workshop insurance is bought by businesses, including carpenters, joiners, cabinet makers,  mechanics, as well as professionals offering commercial garage-keeping services, or electrical repair. If you require specific types of equipment or specialist tools to carry out your business, then it’s worth taking out workshop contents insurance in the event that these get lost, are damaged, or stolen. 

Various Coverages of workshop insurance

• If your workshop is within your home, you ought to get home workshop insurance. 
• If you are the only one working from there, you will be looking for a provider offering private workshop insurance.
•  If you are working on a passion project, you will be shopping for hobby workshop insurance. 
• For the handcrafted goods you make and sell, you are going to need insurance for running craft workshops.
•  Finally, if you will be working on vehicles within your workshop, you are going to need automotive workshop insurance.  

The standard cover for workshops takes care of machinery, tools, and buildings. Specifically, it protects a range of tools and equipment as well as stock and work in progress against any form of damage. 

Factor To consider while shopping for workshop insurance

When purchasing workshop insurance, consider the workshop’s reliance, potential destruction by fire or malicious action, and necessary costs and business expenses. Enable business interruption insurance to protect against ongoing overheads during income loss, ensuring you can resume operations without interruption.

Suppose you have a couple of employees working with you at the workshop.In that case Employer’s liability cover is crucial for insurance, protecting against personal injury claims from employees due to accidents or negligence.

Consider a situation where you transport your tools and equipment from the workshop to the job site. In this case you will require inland marine insurance, not standard coverage. 

Workshop Liability Insurance

Let’s examine a situation where a customer visits your workshop and trips over a toolbox left on the ground. As a result of said accident, they have to go to the hospital and get treatment. Thereafter, there’s quite the likelihood that they will sue you. 

Workshop liability insurance, particularly general liability insurance, covers you for these medical costs and legal defense fees. What’s more, if you were to be ordered by the court system to pay further compensation, general liability insurance caters for said compensation. Overall, it prevents you from paying out of pocket for any of the expenses resulting from said unprecedented eventualities. 

Employer’s Liability Insurance for Workshops 

Consider a situation where an employee or a subcontractor gets injured while on the job or by poorly maintained equipment. 

Employers’ liability insurance covers you from the legal defense fees. Also in addition the compensation that you are likely going to have to pay as a result of the lawsuit brought against you or your business. 

Public Liability Insurance for Workshops

Chances are, if you have workshop insurance, it likely comes with public liability insurance. This covers any physical injury that any public member might suffer or if the property is damaged due to your negligence.In addition If legal action is taken against you by the third party, the public liability insurance for workshops covers any costs that arise from the resulting lawsuit. 

Public liability insurance works similarly to general liability insurance. However you need to understand public liability insurance is significantly different as it can’t be added with optional policies.

Workshop Professional Liability Insurance

Professional liability insurance is also a part of many workshop insurance plans.

So what are the perils covered by professional liability insurance? You can claim professional liability insurance when your workshop is sued for:

• Negligence
• Violation of fair dealing
• Violation of good faith
• Missed deadlines
• Breach of confidentiality
• Other acts considered errors and omissions 

General liability, employer’s liability, and professional liability insurance aren’t the only policies in many workshop insurance plans. There are other policies that are useful or not, depending on your needs. 

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Commercial Property Insurance for Workshops

 Commercial property insurance mitigates financial losses if a business property, especially a building, becomes damaged or destroyed. All workshops need a building to operate. And so, commercial property insurance is an essential coverage. 

So what perils does the insurance cover? Commercial property insurance provides protection against fire, theft, vandalism, extreme weather, and other covered perils. 

How much does commercial property insurance for workshops cost? 

There’s no definite answer for this. But just for you to have an idea, the cost of commercial property insurance is determined by the value of the property to be covered and the amount of insurance money you want to receive from the policy. 

Workers Compensation Insurance for Workshops

Working in a workshop is very perilous. Accidents can happen and this can result in cuts, burns, lacerations, muscle strains, and other injuries. Workplace diseases might also be sustained. And so, it’s important to get workers comp if you have employees or even if you’re working alone.  Workers’ compensation insurance will help you pay for the following:

• Medical expenses-If a workplace accident happens or an employee suddenly experiences the symptoms of a work-related disease, workers’ compensation will cover ambulance fees, surgeries, therapies, and other related medical expenses 
• Hospitalization-You can claim workers’ compensation insurance  to cover your own hospitalization or an employee’s hospitalization. Coverage applies regardless of how long you or an employee needs to be admitted 
• Rehabilitation– In connection, the terms of workers’ compensation insurance includes this peril. Particularly, you can use this insurance to cover therapist fees, equipment costs, and other rehab expenses 
• Lost wages- It covers lost wages. Coverage for lost wages is a weekly allowance equal to two-thirds or 67% of average weekly wage. This will be received until the amount or duration prescribed by the policy’s terms is satisfied 

Is Workers Compensation Insurance Important for Your Workshop?

Workers’ compensation is important for your workshop. It will help you retain talents and take care of employees. But most importantly, this insurance policy enables you to operate without infringing labor laws. All states except Texas require all workshops having one or more employees to get workers’ compensation insurance. The penalty for non-compliance varies but will always be either of these:

• Imprisonment in the county jail – only applies on states treating the failure to get workers comp insurance as a criminal offense
• A fine equal to twice you would’ve paid for the premiums of workers’ compensation insurance
• A fine multiplied by the days your business didn’t purchase workers’ compensation insurance for employees

Inland Marine Insurance for Workshops 

Inland marine insurance covers the value of a product that gets lost or damaged during transportation. Coverage applies if you deliver the product yourself or pass the task to a motor carrier. It doesn’t apply if a product is lost or damaged while being transported in a ship. To get covered against such peril, you need to purchase ocean marine insurance. 

Business Interruption Insurance

Consider a situation where you have to pause business operations for a while to improve the building of your workshop, install new equipment, or relocate. Your business won’t generate income but you still have to pay for operational costs. Business interruption insurance can help with this. 

Forklift Insurance 

Consider getting forklift insurance if you’re using a forklift. This policy consists if numerous coverages such as:

• Liability insurance – Forklift insurance comes with its own general liability coverage. And so, when your forklift causes personal injuries or property damage, your forklift’s liability coverage can cover the cost instead of your workshop’s primary general liability insurance policy
• Equipment breakdown-Equipment breakdown coverage in forklift insurance will cover expenses if your forklift becomes damaged due to use, fire, vandalism, and other covered perils 
• Personal accident insurance-If the forklift causes an accident resulting in the driver getting injured, personal accident insurance will cover medical expenses. 

Workshop Owner’s Garage Liability Insurance

Insurance companies will offer garage liability insurance if you’re running a workshop that provides body customization services to motor vehicles. Garage liability insurance will cover personal injuries or property damage resulting from the activities carried out in your workshop. Particularly, it will cover the medical expenses of injured third parties or refund the value of damaged properties.  

Workshop Garage Keepers Insurance

Garage keeper insurance is another related policy to garage liability insurance. Again, this is only useful if your workshop services motor vehicles. In case the vehicles are damaged or lost due to fire, theft, vandalism, and other covered perils, garage keeper insurance ensures that you can pay for the losses of the owners. Understand that this policy and the one above are common inclusions in garage workshop insurance policies.

Different Types of Specialized Workshop Insurance Plans 

Car Workshop Insurance

Car workshop insurance is a policy for workshops providing automotive services. Common policies included in automotive workshop insurance are commercial property with equipment insurance, general liability insurance, garage liability insurance, and garage keepers insurance. 

Craft Workshop Insurance

Craft workshop insurance is a tailored coverage for crafters having their own workshop. General liability insurance with product liability coverage, commercial property, workers compensation, and equipment breakdown insurance are the most common inclusions. 

Home Workshop Insurance

No insurance companies provide tailored home workshop insurance. The same is true for hobby workshop insurance and private workshop insurance. Coverage is only available to workshops used for commercial purposes. Nonetheless, what you can use as a home, hobby, or private workshop insurance policy is a homeowner’s insurance. Homeowner’s insurance has a personal articles policy and you can insure workshop equipment using that. 

Workshop Insurance Cost

Wondering how much does workshop insurance cost? On average, workshop insurance liability insurance costs $96 per month or $1,152 per year.

As always, the insurance premiums you pay depend on your business’s risk factors, including the size and location of your workshop.

Here’s a breakdown of the average cost of the best workshop insurance companies in the market. 

Insurance Claim Workshop: How to Get Your Insurance Money?

Making an insurance claim workshop depends on the procedures implemented by the carrier you choose to work with. But generally, there are two paths you can take – work with an insurance agent or file the claim online. 

Best Workshop Insurance Companies

Here are the best workshop insurance companies. Read to know their pros, cons, and pricing for a $1 million general liability insurance.

CoverWallet Workshop Insurance

CoverWallet has three workshop insurance options-legal liability, direct primary coverage, and direct access. Workshop insurance from this company is available for private workshops at commercial facilities and home workshops. Other than the three offerings, CoverWallet also offers workshop liability insurance. On average, you will pay $66.66 per month and $800 annually. 

Best for: Workshop insurance quotes comparison online

Average cost: $66.66 per month 

Our rating: 10/10

Pros

• Compare workshop insurance quotes from different companies
• You can get insured certificate of insurance and pay premiums online
• Streamlined insurance policies

Cons 

• CoverWallet’s workshop insurance is an endorsement and not a stand-alone policy or optional policy

Progressive Workshop Insurance 

Progressive offers workshop insurance and includes an automobile service station for crafters and workshops with motor vehicles. Even when you have a previous history of claims and disgruntled employees, you’ll get coverage from Progressive. Granted, in such a situation, you will pay significantly higher premiums. All the same, getting the workshop insurance ensures that your business stays afloat even with multiple claims and lawsuits. On average, you will pay $85 per month and $1,020 yearly. 

Best for: Workshop liability insurance for high-risk industries

Average cost: $85 per month 

Our rating: 9/10

Pros 

• Covers customers with a high-risk factor 
• You can file and track a claim online 
• You get all the state licensing you need under one roof

Cons

• Only offers workshop legal liability 

• No direct primary coverage or direct excess coverage is available

State Farm Workshop Insurance

Established in the mid-1920s, State Farm has risen to be the largest insurer in the United States. Other than the wide range of personal and business insurance policies, they also offer stand-alone specialty insurance for workshops. For the workshop insurance policy, you will pay $96.15 per month and $1,155 annually.  

Best for: Mid-sized workshops

Average cost: $96.15 per month 

Our rating: 8/10

Pros 

• Exemplary customer service
• Competitive rates and flexible premiums 
• Offers workshop insurance in all 50 states, including Washington, DC. 

Cons

• Not so straight-forward claim processing 

Geico Workshop Insurance 

Geico is the second-largest insurer in the United States. While it started out as an auto insurance provider, it has since expanded its offering to include workshop insurance. 

What stands out about Geico is that it offers among the cheapest premium. Still, these premiums will vary greatly from one location to another, depending on your business’s risk factor. Overall, if you run a large workshop with multiple employees, Geico workshop insurance is the product for you. You’ll pay $106.41 per month and $1,277 annually

Best for: Large workshops with multiple employees

Average cost: $106.41 per month 

Our rating: 8/10

Pros 

• A responsive mobile application is available 
• There are policies for both small and large workshops
• Relatively fast claim handling

Cons

• Varied cost of insurance from one client to the other