Locksmith Insurance Ontario

Ontario Locksmith Insurance 

Being a commercial locksmith is a very practical career. Locks are vital in keeping people’s most valuable possessions, including their homes and cars, safe from thieves. As a locksmith, you help ensure people get this level of safety. However, owning a locksmith company comes with lots of risk. Maybe you’re held accountable for damage to someone’s property while installing a new lock for them or their neighbour. Perhaps while you’re working, a thief will steal many tools. Any of these situations could end up costing you lots of money. Luckily, locksmith insurance is here to protect you in the event of a loss. 

What Is Locksmith Insurance? 

Locksmith insurance is a type of contractor insurance coverage that protects locksmiths from many financial risks they expose themselves to by running a business. When you’re a business owner, despite having more freedom than you would just being an employee, you also have more responsibilities. If something breaks or is stolen, or there’s a legal dispute between the company and another party, you must ensure that the situation is handled properly. Ensuring such a situation is resolved correctly often means paying for the losses involved, which, in many situations, can be tens of thousands of dollars, especially in legal situations. Locksmith insurance will protect you from insured perils, letting you continue your business unimpeded. 

Who Needs Locksmith Insurance? 

Anyone who owns a locksmithing company should have the protection that locksmith insurance provides. It doesn’t matter if you are a sole proprietor who runs an independent business as a locksmithing contractor, or if you own a locksmithing company with multiple locations. Every locksmithing company has similar exposures and needs the protection provided by locksmith insurance. It is important to remember that you are not immune to these risks. Although you can mitigate these risks, nobody can reduce the odds of an incident to zero. In these situations, locksmith insurance can prevent you from being open to financial risk, meaning you can focus on building and maintaining your business without worry. 

Is Locksmith Insurance Mandatory? 

Although locksmith insurance is not legally mandatory, there are many things it protects you from, so you shouldn’t go into business without it. You take on a lot of responsibility, from replacing equipment that breaks or is stolen to covering legal fees if you are held responsible for damage done to a third party due to your actions.  Although you can take steps to minimize the risks you’re open to, there is always the risk of something going wrong. Just one of these situations can be crippling to your business, so locksmith insurance is necessary to protect you against a situation like this. 

What Does Locksmith Insurance Cover? 

Locksmith business insurance provides a wide range of protection. Common coverages include commercial general liability, errors and omissions insurance, product liability and tools coverage. There are also a wide range of optional coverages to provide extra protection for those who require it. 

Commercial General Liability Insurance 

Commercial general liability insurance will cover you when you are held legally responsible for an accident that harms a third party. This could include situations such as a slip-and-fall in your office leading to bodily injuries, or a client’s child hurting themselves by picking up one of your sharp tools and playing with it. This also includes being held responsible for property damage to a client’s home or other personal property. Commercial general liability insurance will cover your court costs and any money you owe to a third party, such as medical expenses. 

Errors & Omissions Insurance 

Errors & omissions insurance, also known as professional liability insurance, is designed to cover you in situations where your mistake causes physical or financial harm to your client. For example, you might install a lock for someone, but the lock doesn’t work as intended, leading to your client’s home being broken into. It also covers you if someone accuses you of libel, slander, copyright infringement, and similar charges. Your client might demand that since you made this mistake, you should be held responsible. In this case, errors and omissions insurance will cover legal expenses and anything you owe to your client. 

Product Liability Insurance 

Product liability insurance, protects you when an item you sell, such as a lock or key, is faulty, and the customer who bought it holds you responsible. Whether this is a product you made yourself or if you purchased it from a manufacturer. Lock product liability insurance will protect you in such cases, meaning a faulty product won’t damage your business’ bottom line. 

Tools Insurance 

Tools and equipment insurance, protects the locksmithing tools you use for your job. Like most tools made specifically for certain jobs, locksmith tools are likely expensive and prone to damage. While we trust that you’re being as careful as possible, your equipment could still break down suddenly. Someone could steal your tools, either while you are on a job or by breaking into your location. In such situations, locksmith tools insurance will cover the cost of replacing these tools with new ones, allowing you to continue doing your job without taking on a significant financial impact to your business. 

What Additional Coverages Are There For Locksmith Insurance? 

In addition to the four coverages mentioned above, there are also some optional types of coverage. Every locksmithing company is different and has unique needs, meaning that some will be very valuable to you while others are less relevant. This helps you customize your policy to suit your situation. If you need help determining which of these coverages suits you, your Morison Insurance broker will gladly help you. 

Commercial Property Insurance 

Commercial property insurance is important to anyone who uses a physical location, whether it’s where they store their tools and equipment or where they have a storefront with products and staff. Like any physical location, it can be damaged for reasons outside the owner’s control. Perils include, but are not limited to, vandalism, fire spreading from a neighbour’s building, and damaging weather such as hail. Commercial property insurance can cover the physical losses you incur when an insured peril damages your property. 

Commercial Fleet And Auto Insurance 

Commercial fleet and auto insurance is car insurance for your company vehicles. Whether a vehicle ships items from a distributor to your headquarters or is driven by a locksmith to travel to a client’s location or for other purposes, it is covered by commercial fleet and auto insurance. This helps protect you from the financial risks involved with owning a vehicle, such as the possibility of damage to the vehicle itself, as well as having to possibly pay those who are harmed in a collision. Please note that if you have one or more company vehicles, this type of coverage is mandated by law, and you cannot use the insurance policy on your personal vehicle; you must use a commercial policy. 

Commercial Cyber Insurance 

Commercial cyber insurance protects your locksmith business if you are the victim of a cyberattack. Cyberattacks can include situations where your IT systems are taken down or a database containing sensitive financial information about you and/or your clients, is broken into by cybercriminals. This coverage can cover costs such as bringing your systems back up, covering lost income if your business must shut down, fixing your credit score, and any legal costs involved. 

Commercial Umbrella Or Excess Liability Insurance 

Commercial umbrella or excess liability coverage provides financial protection in cases where the amount of money you owe someone else for a liability claim exceeds the amount that your standard coverage offers. This protection helps you weather the storm of unusually large claims, allowing you to keep your business running. 

Can Locksmith Insurance Cover Both Contractors And Larger Businesses? 

Yes. Whether you are a locksmith contractor who sees clients individually, helping with their homes and vehicles, or you own a large business that helps companies set up large security systems, locksmith insurance coverage protects you against many perils. If you currently have a small company, it is possible to keep renewing your locksmith insurance policy with the same insurance provider as you grow into a larger company. However, it is essential to note that if your company experiences any changes during this time, please let your Morison Insurance broker know so that your policy can be adjusted accordingly. 

How Much Does Locksmith Insurance Cost? 

There is no set cost to locksmith insurance. This is because each company is different and is exposed to different risks. A contractor who works exclusively with vehicles will face unique risks and have a different policy than a company that focuses on creating advanced locking systems for large homes. It should also be noted that since insurance companies weigh each risk differently, the same locksmith company will likely get various quotes from each insurance provider. If you would like an estimate on your locksmith insurance quote, it is best that you speak with your Morison Insurance broker, who will be happy to assist you. 

What Factors Could Impact My Locksmith Insurance? 

Many factors could impact your locksmith insurance quote. These factors include the following: 

• The number of employees your company has. 
• The location of your business. 
• The size of the property your company operates out of and serves. 
• The clientele that your company works with. 
• The type of locksmithing work, or other work, done by your company. 
• The amount of stock and tools your company handles and uses. 
• Any vehicles your company has. 
• The amount of coverage desired by you as policyholder. 
• Your claims history. 

Please note that this is not a complete list of factors that could impact your locksmith insurance premiums. If you would like to learn more about which factors could impact your quote, your Morison Insurance broker will be happy to help. 

How Can I Lower My Locksmith Insurance? 

It is understandable to want to lower your locksmith insurance, especially if you can find a way to do so without sacrificing coverage. Luckily, there are a few ways to do this. 

• Increase your deductible. 
• Increase workplace safety. 
• Avoid making claims on small losses to keep a clean claims record. 

Please note these are just a few ways to lower your locksmith insurance quote. If you would like to know more, your Morison Insurance broker will be happy to help you. 

Where Can I Get A Locksmith Insurance Quote? 

You can get a locksmith insurance quote from Morison Insurance. Morison Insurance is a family-run insurance brokerage that treats its clients as an extension of that family. We have over a century of helping people in Ontario get the best insurance coverage possible. Fill out a form below or call us at 1-800-463-8074 and get the coverage you deserve today.