A locksmith is a trained professional specialising in installing, replacing, repairing, or breaking locks on doors, lockers, cars or any systems with a lock. Furthermore, they are the professionals people go to when they lose their keys or need duplicates. Even though this occupation requires lots of training, even the most successful locksmiths are prone to making mistakes like damaging the latch, misplacing their equipment or being in an accident that hinders their ability to work. Locksmith insurance lessens the financial impact this could have on the business.
Types of Locksmith Insurance
A locksmith may find several covers advantageous, but each individual must decide which would be most helpful for their business.
Public liability insurance
Public liability insurance covers any physical harm or damage to belongings of a third party whilst the locksmith is at work so that any medical costs or expenses for replacing destroyed personal property are covered. For example, if a locksmith was called to break into the lock because a customer forgot their keys, but in doing so, scratches the door or destroys the door handle, the cost of replacing this would be the company’s responsibility.
Similarly, if they were working and did not see the customer behind them, dropping a heavy piece of equipment on their foot may need medical evaluation. The insurance company would recompensate these expenses as they are unintentional accidents.
2. Business equipment and tools insurance
Business equipment and tools insurance insurers any equipment a locksmith would need to carry out the services they provide. All of the tools combined can be very costly, and the price of replacing them if they were damaged could be detrimental to the business, so it is wise to have insurance in place, which could help cover the costs of this. Generally, locksmith equipment includes machinery for key cutting or duplication, drill bits, bolt cutters, lock picks and bench tools.
If someone stole these tools whilst they were stored during the night or destroyed in a fire, the locksmith would need to close the business until they could be replaced because it would be impossible to operate without them. Hence, having them insured could save thousands of pounds.
3. Business interruption insurance
Business interruption insurance is a type of cover that maintains the revenue even if the business was to shut due to an unforeseen circumstance unexpectedly. This could result from personal injury to inhibit an employee from working to the locksmith tools being lost or stolen and awaiting replacement, to the breakdown of the company vehicle, which makes visiting multiple places a day increasingly difficult.
Depending on the level of coverage a locksmith deems necessary, a lump sum is given towards the business revenue. When the business eventually resumes, there is no stress working manically and making up for the lost revenue.
4. Cyber insurance
Cyber insurance may seem like it is only aimed at IT-related businesses. However, it is beneficial to any occupation that uses a computer system to store customer information. As a locksmith cannot remember each customer and their details by heart, and storing them on paper lacks security and could be easily damaged, most companies have resorted to an online cloud system with backup.
Whilst this is the safest option, there are still risks associated with keeping sensitive information on the computers as hackers can still access this data or corrupt it. Cyber insurance provides a payout for replacing all software if it is breached, lets all locksmiths’ customers know about the situation, and helps them restore their data and credit score.
5. Employers’ liability insurance
Employers’ liability insurance is compulsory for companies that hire locksmiths, but not if the locksmith is a sole trader and only one employee. If a worker is physically hurt whilst working, they could sue the company’s director for being responsible and causing this injury. Employers’ liability insurance helps cover the legal fees for representation in court and filing documentation and even recompensates the employee for any necessary medical treatment.
In conclusion, locksmith insurance is encouraged because unintentional accidents could happen to anyone and as a result, they can be expensive to fix. Medical expenses, legal fees, and equipment replacement can cumulatively add up. It is more cost-effective and safer to have insurance to avoid the hefty costs of this and instead focus on improving the business.
Find out more about the importance of insurance here.
Other useful links about Business Insurance:
Churchill Business Insurance
Hiscox Business Insurance
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