Appliance repair shops are responsible for making small and large repairs to appliances, including refrigerators, dishwashers, freezers, washers and dryers. They also repair smaller appliances like televisions, microwaves, and vacuum cleaners. Appliance repair workers provide estimates and the necessary repairs for residential and commercial customers. Your company may provide mobile services where you work out of your home or from your own shop. Larger appliances are often repaired in the customer’s home or business. The newest appliances require more experienced appliance repair workers as they use new and improved technology.
Unfortunately, many different things can go wrong with appliances, which may include a leaking washer or a refrigerator that has a broken thermostat and no longer gets cold enough. Even with the right business plan, you still have risks such as damaging an appliance further during the repair or worse, damaging the home or business from an accident. You need appliance repair shop insurance in order to protect your business assets.
Types of Appliance Repair Insurance
There are a variety of insurance policies for appliance repair shops to choose from, each of which covers a different range of risks. The following are the most important to consider:
General liability insurance is an excellent business insurance policy to have. It will protect against certain legal liability risks, including injury to a visitor of your appliance repair shop, along with damage done to their personal property, and services you perform. Most general liability policies include premises liability, property liability, and completed operations. Completed operations will protect your business if the repairs you make in turn cause more damage to the appliance after the repairs are completed. If a customer brings their small appliance to your repair shop to be worked on and they get an injury in your shop, premises liability will cover the damages. Products liability will offer coverage if you sell any products to your customers such as tools that can help them with basic repairs. It may also cover replacement parts you used for their appliances.
Unexpected events are just that, unexpected. You can’t always prevent them, but by having property insurance, you can protect your business from the potential loss. Things such as earthquakes, snow or hail storms, or fire may cause damage to your building and contents. Some of the tools and repair procedures you use might also include flammable or combustible materials, which can worsen the damage done. By getting a property insurance policy, you have the best protection possible.
As an appliance repair shop owner, your employees no doubt visit client’s homes or businesses to perform repairs on large appliances that aren’t easy to move. In this case, the company vehicles should be covered by business auto insurance. Not only does it cover bodily injury and property damage, but damage incurred to the appliance in the vehicle at the time of the accident can also be covered.
The tools and equipment you use is expensive, whether it is a good set of wrenches or a volt meter. The more you use your tools and equipment, the higher the probability they will break down due to regular wear and tear. However, with equipment breakdown coverage, you can get help paying for repairs or replacements of your appliance repair tools. So if your OHM meter breaks down and you can’t afford a new one, the equipment breakdown insurance policy is going to benefit you greatly.
To have more than one type of coverage in one policy, you should get a business owner’s policy. Also called a BOP, the business owner’s policy is a package policy that includes different optional coverages in one policy. You can choose from electronic data coverage, dishonest employee coverage, recently acquired buildings or structures, business income and expense, and other policies. Along with the help from your business insurance agent, you choose the specific coverages based on your probable risks and have multiple coverages in a single BOP.
While other business insurance policies are widely beneficial and will cover a large amount in repairs or legal costs, they don’t always cover what you need. In this case, umbrella insurance can help fill the gap between what you owe and what your business policies are willing to cover. The appliance repair shop liability policies you may have (General Liability and Commercial Auto for example) all have coverage limits. Umbrella liability insurance therefore is used to increase your liability limits for all of these risks under one policy to protect your business for claims that exceed your primary policy limits.
Worker’s compensation insurance is designed to cover workplace injuries or illnesses. For appliance repair personnel, they are at a high risk of back or shoulder injuries from lifting and adjusting heavy appliances, as well as injuries from tools used like soldering guns or pliers. With worker’s comp, medical costs or treatments will be covered by the policy.
Appliance Repair Crime Insurance
Even if you choose your employees carefully with background checks and verifying references, you still run the risk of dishonest employees. For appliance repair shops, theft and embezzlement by your employees is one of the biggest crime risks. Luckily, there is crime insurance that will offer additional protection from loss caused by such crimes.
Appliance repair shops provide lucrative income with the right training and business plan. Choosing the right insurance helps protect the business you have worked hard to build. Purchase appliance repair shop insurance to protect your business assets, your company, and your employees.