Charged with keeping valuables secured and at other time gaining access to important places, locksmiths help maintain order and prevent loss. As a locksmith, you know the depth and scope of your profession. However, there are still misconceptions regarding the work.
One mistaken belief is that because the locksmith profession generally is seen as a safe trade (as compared to high-rise construction or operating mining equipment) locksmiths require less insurance cover than other tradies. This isn’t always true.
In this blog post, you’ll learn what type of insurance cover is available for locksmiths, and why it is important for your business.
What Kinds of Insurance Should You Have?
Locksmiths need several types of cover which are essential to the wellbeing of their businesses, employees, and themselves. These varieties of cover include:
1. Workers’ Compensation Insurance
As you may be aware, Australian law requires business owners to have worker’s compensation insurance for their employees.
While the specifics may vary depending on where you are working, you are still responsible for providing the proper coverage. In a situation like this, the expertise of an insurance professional is beneficial.
Apprentices cover is a particular case where an insurance pro can help you with worker’s compensation insurance. Generally, apprentices must have cover by a worker’s compensation policy. However, it is worth a few minutes of your time to consult with an expert so you can have peace of mind knowing you are well-insured.
2. Contract Works Insurance for Locksmiths
The idea that only those who own and operate construction and building companies need to get contract works cover is a fallacy.
Working as a locksmith on new builds or renovations leaves you open to the same types of issues that other tradies experience. This is why you need the protection and peace of mind a contract works policy provides.
Generally, you will choose between an annual contract works policy that covers you on any job site for a 12-month period of time or a policy that covers a single job for up to 12 months. Speaking with an insurance professional can help you decide which contract works policy options is best for you.
What Will Contract Works Insurance Cover?
Your contract works policy covers a variety of losses. These include but may not be limited to:
- Material damage
- Theft
- Vandalism
- Flood damage
- Fire
- Storms
- Unexpected work delays that result in a loss
Whether you choose an annual or single job contract works policy, make sure that you are covered from the origination of the contract until the new owner signs off on the project and claims the property.
1. Cover for Locksmith Vehicles
Because transportation is a key to a profitable locksmith business, be sure to speak with your insurance expert about insuring your company vehicles. Policy details will vary depending on your area, the areas where you provide your service, vehicles, drivers, and the driving records of those employees who will operate your vehicles.
2. Cover for Illness or Injury
Regardless of what size your locksmith business is, you and your employees depend on your ability to come to work each day and do what you must to keep the business successful. In some cases, the smaller your company, the more critical each member of the team.
To make sure you, your family, and your workers are financially secure, you should plan on speaking with your insurance cover expert about a policy that will provide income for accidents and illnesses outside of the workplace.
Sometimes people mistakenly believe that worker’s compensation insurance will keep them solvent in the event of accidents or illnesses. It cannot be stressed enough that if your illness or injury is not work-related, worker’s compensation will not provide cover.
CASE STUDY: Daryl is the owner and operator of a one-person locksmith company. While at home one day, Daryl has a seizure and sustains injuries that will keep him from working for several months.
Because Daryl planned ahead and has an illness and injury policy, his personal and professional assets are secure, and he can continue to meet his needs. Without the illness or injury cover, Daryl could have faced the loss of his business as well as his personal assets.
3. Cover for Equipment and Specialised Tools of the Trade
Any tradie will tell you; the right tools make the job possible. The statement is accurate when it comes to locksmiths’ and their tools and equipment. It is no exaggeration to say that the contents of a locksmith’s toolbox are worth thousands of dollars.
Beyond the tools one thinks of when the profession locksmith comes to mind, a large number of pieces of expensive and specialised equipment are necessary to run a profitable locksmith company.
For these reasons, many insurance specialists suggest you insure these products for their replacement value instead of the depreciated value of the tools.
Note: The information contained in this blog post is for educational purposes only. This material should not take the place of a consultation with an insurance expert and is not legally binding professional advice.