Operating an appliance repair business comes with risks like property damage, injuries, and lawsuits that can lead to significant costs. That’s why having the right insurance is critical for appliance repair companies. Two essential policies are general liability insurance and workers compensation insurance.
General liability insurance covers costs associated with third-party property damage, bodily injury, and other liabilities arising from your business operations. For an appliance repair business, general liability insurance can pay for damages if an employee accidentally breaks a customer’s property while servicing an appliance (note: breaks other than the appliance and not related to the actual appliance property). It will also cover the legal costs if you are sued for alleged injuries or damage.
Typical general liability insurance limits for small businesses are $1 million per occurrence and $2 million aggregate. Higher-risk businesses may need more coverage. Some policies also have deductibles, often $500 to $2,500, that you pay out-of-pocket before insurance kicks in.
Workers compensation insurance is mandatory in most states and covers injuries and illnesses employees sustain on the job. For appliance repair technicians, potential injuries include electrical shocks, muscle strains from lifting, slips and falls, cuts from tools, and more. Workers comp insurance pays for all medical treatment along with lost wages and rehabilitation if needed.
Premiums for workers comp are based on payroll and risk level. Safety training and following best practices can help reduce accidents and keep premiums affordable. Having clear, written procedures and providing protective equipment demonstrates your commitment to safety.
It’s critical to work with a reputable insurance company when buying liability and workers comp policies. Look for an insurer that’s financially stable with a track record of fair claim payments. An experienced agent can help you evaluate your risks and craft a policy to meet your business’s unique needs.
By protecting your appliance repair business with the right insurance, you reduce the chance of financial hardship if the unexpected occurs. Comprehensive general liability and workers compensation policies give business owners peace of mind knowing they are covered against costly claims. Investing in proper insurance helps create a resilient, sustainable appliance repair operation.