Appliance Repair And Service Business Insurance

Appliance repair and service businesses provide an essential service to homeowners (but not only) by keeping their appliances running smoothly. However, the nature of the work can be risky, and accidents can happen. That’s why appliance repair and service business insurance is necessary to protect these businesses from financial loss.

Who Needs Appliance Repair and Service Business Insurance?

Any business that provides appliance repair and service needs insurance coverage. This includes small, independent contractors, as well as larger businesses with multiple employees. Appliance repair and service businesses work in customers’ homes and businesses, making them susceptible to property damage, injury, and liability claims.

Types of Insurance Needed by Appliance Repair and Service Businesses

Appliance repair and service businesses require various types of insurance coverage, including:

General Liability Insurance: This type of insurance provides coverage for third-party bodily injury, property damage, and personal injury claims. It covers lawsuits related to slip and falls, product liability, and other incidents that could occur on the business’s premises or as a result of its operations.
Commercial Auto Insurance: Appliance repair and service businesses that use vehicles for business operations require commercial auto insurance, which provides coverage for accidents and other incidents that occur while driving the business’s vehicles.
Workers’ Compensation Insurance: Workers’ compensation insurance provides coverage for employees who are injured on the job. It covers medical expenses, lost wages, and other related costs.
Professional Liability Insurance: Professional liability insurance provides coverage for errors and omissions in the business’s work. It covers legal fees, court costs, and damages awarded to the plaintiff.

How Much Does Appliance Repair And Service Business Insurance Cost?

The cost of appliance repair and service business insurance varies depending on various factors, including the size of the business, the number of employees, and the types of coverage needed.

Generally, the cost of insurance increases as the size of the business and the number of employees increase. The average cost of general liability insurance for an appliance repair and service business is around $500 to $1,000 annually. The same goes for professional liability insurance, while commercial auto insurance and workers’ compensation insurance can cost several thousand dollars per year.

Appliance Repair & Service Risks & Exposures

Appliance repair and service businesses face various risks and exposures.

Property Damage

Appliance repair and service businesses work with customers’ appliances, making them susceptible to accidental damage or destruction. This damage could lead to costly repair or replacement expenses.

Bodily Injury

Technicians working on appliances may be at risk of bodily injury due to slips, falls, or other accidents that could occur in customers’ homes or businesses.

Liability Claims

Appliance repair and service businesses may be held liable for damages resulting from errors or omissions in their work. They could face costly lawsuits, legal fees, and damages awarded to the plaintiff.

Commercial Insurance And Business Industry Classification

SIC CODE: 7629 Electrical and Electronic Repair Shops, Not Elsewhere Classified
NAICS CODE: 811412 Appliance Repair and Maintenance, 811211 Consumer Electronics Repair and Maintenance, 811213 Communication Equipment Repair and Maintenance
Suggested Workers Compensation Code(s): 9519 Air Conditioning Systems – Portable Units – Installation, Service or Repair & Drivers