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Appliance repair contractors are exposed to a number of risks ranging from the theft of valuable tools and equipment to bodily injury and even damage to the customer's appliance and property.
With adequate appliance repair business insurance, you can shield your business against lawsuits, claims, and hefty medical bills that result from unforeseen accidents.
Why Do Appliance Repair Businesses Need Insurance?
Businesses that provide appliance repair services need insurance to protect themselves from potential accidents that can then lead to lawsuits and claims, which more often than not are only resolved with monetary compensation.
And if there is no insurance policy in place to cover the cost of the claim, the business will have to step in and pay it up. This can seriously affect the financial standing of any business, especially if it's a small company, which is why appliance repair insurance is recommended.
For example, if a contractor is working on an appliance and accidentally damages it, the business could be held liable. In other cases, the issues can come from within the company. As an example, if an employee is moving an appliance for repair and gets injured while doing so, the business could be held responsible.
Having insurance helps to protect the business from these types of risks, which are more common than many appliance repair contractors think.
What Types of Insurance Do Appliance Repair Businesses Need?
Appliance repair businesses can mostly benefit from a couple of different insurance policies. Generally speaking, the level of cover you need will depend on how big your business is, the clients you work with, the number of staff you employ, the number of company cars the business owns, the total value of your equipment, and more.
To get a better idea of the recommended insurance policies for your industry, please take a look below.
How Much Does Appliance Repair Insurance Cost?
The cost of appliance repair insurance depends on several different factors, including the size of the business, the business' location, and what kind of coverage it needs.
As a general rule of thumb, you can expect to pay between:
- $600 and $1,200 for general liability insurance every year
- $1,000 and $3,000 for worker's compensation insurance per year
- $1,000 and $2,000 for commercial auto insurance per year
- $100 and $150 for contractor's tools and equipment insurance per year
To get the best price, it’s worth getting a quote from various different appliance repair insurance companies.
Typical Appliance Repair Insurance Claims
Generally speaking, appliance repair insurance claims are pretty rare. They can vary from accidentally damaging the customer's appliance while working on it to property damage like cracking a tile in the kitchen while moving a washing machine.
In other more severe cases, appliance repair businesses claim insurance when a member of staff falls sick or gets an injury that requires medical attention while on the job.
In more rare cases, claims related to road accidents, theft of tools and equipment, and payment disputes with clients are made.