If you are in the garage door business, you may wonder if you need to carry insurance. The answer is maybe. It depends on a variety of factors, including the type of business you have, your location, and your state laws.
For example, if you own a small garage door repair business in Texas, you may not need to carry insurance because the state does not require it.
However, if you own a large garage door installation company in California with multiple employees, you will most likely need to carry workers' compensation and liability insurance. California has stricter legislation regarding insurance requirements than other areas of the country.
It's always a good idea to check your state's requirements and then speak with an insurance agent to see what type of coverage is right for your business. To better acquaint yourself with the various elements of the subject, we provide additional information below.
Garage door liability insurance protects contractors from claims related to bodily injury, personal injury, and property damage that can occur while they are on the work site.
This type of insurance covers damages caused by the contractor while installing or repairing a garage door and any claims resulting from an accident on the premises. It also provides coverage for products sold by the contractor that may cause harm or damage if faulty or do not function properly. This insurance policy does not act as a home warranty for customers.
As with most forms of insurance - auto insurance, professional liability coverage, or health insurance - there is a high level of risk that comes when you decline to use a policy. Below are some of the issues that can arise in this situation and answers to the question: “Do garage door businesses need insurance?”
Not having garage liability insurance or having substandard levels can pose several risks for businesses, including:
Garage door accidents are common occurrences that can happen in many different situations and forms. Protecting yourself and your company against any issues that arise is critical.
If your business does not have the correct type of insurance, courts may force you to pay damages if someone sues you for an act committed by one of your employees, whether it be for damages, robbery, or poor-quality work that was ultimately the cause of bodily injury.
Without insurance, there is no route for adequate compensation for the victim or homeowner. Therefore, the business owner will take on the responsibility in order to rectify the situation appropriately. This responsibility does not fall solely on the victim's health insurance.
Ultimately, the consequences can damage you and your business, including losing significant money and even closure.
If a business does not have liability insurance for its garage door repair company, it could suffer from financial loss in the case of someone filing a liability claim.
Like the other situations we detail, the loss can also come with the possibility of shutting down the business altogether if damages are significant enough. Additionally, if there is no insurance coverage in place, the business owner's personal assets may be at risk if they are found liable for damages caused by their company's actions or products.
A lack of garage liability insurance can damage a business's reputation if the situation is severe enough. Excluding this valuable resource from the business's structure makes the company more vulnerable to considerable financial losses and even business failure if an accident or lawsuit occurs.
The lack of garage liability insurance can also damage a business's reputation by making it appear unprofessional and careless. It shows that the owners aren’t putting forward the utmost level of concern and protection for their staff and customers as they should.
Another element that a business owner needs to consider is that not having sufficient liability coverage could also lead to negative publicity. Even though having insurance is a positive characteristic, the public may see obtaining too small of a policy that doesn’t cover all instances as neglectful.
Without garage liability insurance, businesses can suffer ramifications for a variety of damages caused by products and employees. These include:
The risks of doing business without garage liability insurance include the inability to recover quickly from accidents or natural disasters that may damage your building or equipment. While you may not think you are liable for such acts, it is possible. If they strike when you are in the middle of a job, your equipment and supplies are at risk. Additionally, your office and storage facility can undergo damage at the same time.
It’s also critical to have commercial auto insurance for your overhead door company to protect your organization’s fleet of vehicles. Without reliable transportation, you will be unable to get to the job sites with the necessary supplies.
The cost of garage liability insurance varies depending on several factors, such as location, deductible, number of employees, per-occurrence limit, and general aggregate limit. On average, businesses spend between $500 - $1,500 per year for $1 million in general liability coverage.
General Liability Insurance Overview
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner's policy (BOP). An average $1 million/$2 million general liability policy for a small business can be under $50 per month, depending on where your business resides and specific state requirements.
Ultimately, speaking with an insurance representative is best to get a clear picture of what your business requires.
The world of liability insurance for a garage door repair company is a tricky subject to navigate. To help in the journey, we highlight the top questions below.
Garage door repair businesses should be aware of several types of insurance that are essential for their business. These include:
General Liability Insurance: This type of insurance protects the business from any potential lawsuits related to injuries or property damage caused by its products or services.
Garage Door Business Insurance: Business insurance provides coverage for financial assets and is an essential investment for any garage door installation and repair business.
Property Coverage and Commercial Auto Insurance: This type of insurance covers any physical damage to buildings, machinery, and other property owned by the business in case of natural disasters or other incidents that may cause loss or destruction of property values.
Garage businesses should purchase general liability insurance to protect their financial assets. On average, American garage door installation businesses spend between $500 - $1,500 per year for $1 million in general liability coverage.
It’s worth noting that this amount varies depending on location, deductible, number of employees, and other local regulations and coverage limits.
Garage door repair businesses should have worker's compensation insurance to protect their employees in case of injury on the job. The type of worker's compensation insurance required depends on the size and nature of the business but generally includes the following:
Employer's liability coverage: This type of insurance covers any legal or financial obligations arising from an employee's injury while on the job. It can help cover medical expenses, lost wages, legal fees, and other costs related to an employee's injury.
Third-party liability coverage: This type of coverage protects against claims made by someone who became injured as a result of your business operations. It helps cover costs associated with legal action taken against you due to an employee's negligence or error that resulted in injury or property damage for someone outside your company.
