What is locksmith insurance?
Locksmith insurance is designed to protect professionals in the trade from financial risks associated with their work. Whether you’re cutting keys, installing locks, or responding to emergency callouts, your job comes with potential liabilities. The right insurance coverage helps ensure you’re protected from claims that could arise due to accidental damage, injuries, or theft of valuable tools and equipment.
Do locksmiths need insurance?
While insurance for locksmiths isn’t always a legal requirement, it’s a safeguard against unforeseen costs that could impact your business. Accidents happen, and whether it’s damage to a customer’s door or a lost set of expensive tools, the financial consequences can be significant. Insurance helps ensure you’re not left covering these costs out of pocket.
If you employ staff, then certain covers, such as employers liability insurance, are legally required. Public liability insurance, while not mandatory, is often expected by clients and landlords when working on-site.
Locksmith public liability insurance
Locksmith public liability insurance covers claims made by third parties for accidental injury or property damage caused by your work. For example:
- While installing a new lock, a locksmith accidentally scratches an expensive wooden door. The customer claims for repairs, and public liability insurance covers the cost.
- A locksmith leaves tools on a customer’s driveway, and someone trips over them, sustaining an injury. If the injured party claims compensation, public liability insurance helps cover legal and settlement costs.
Having this cover in place provides reassurance that unexpected claims won’t put your business at financial risk.
Tools and business equipment insurance for locksmiths
Your tools are essential to your trade, and losing them can be both costly and disruptive. Tools and business equipment insurance covers theft, loss, or damage to your kit, whether it’s in your van, at home, or on-site.
For many locksmiths, investing in high-quality tools is necessary to provide a reliable service. Without insurance, replacing stolen or damaged equipment could significantly impact your ability to work. Many policies offer cover for items stored in locked vehicles overnight, although some insurers may have specific security requirements.
Other covers for locksmith businesses
Professional indemnity insurance
Locksmiths who provide security advice, install complex locking systems, or work with high-security clients may benefit from professional indemnity insurance. This cover protects against claims of negligence, errors, or omissions in professional services. If a customer alleges that incorrect advice led to a security breach, professional indemnity insurance can help cover legal costs and compensation claims.
Employers' liability insurance
If you employ staff, including apprentices, part-time workers, or subcontractors, you’ll likely need employers' liability insurance. This cover protects against claims from employees who suffer work-related injuries or illnesses. For example, if an apprentice injures their hand while using a cutting machine in your workshop, this insurance can cover legal fees and compensation.
Even if you’re a sole trader, you may still need this cover if you hire temporary staff or trainees. Many trade bodies and contracts also require it as a condition of working with larger clients.
Own and hired plant & machinery
Some locksmiths use specialist machinery for cutting keys or installing advanced security systems. Whether you own this equipment or hire it for specific jobs, insuring it protects against theft, damage, or breakdowns. Plant & machinery insurance can be particularly useful if you rely on costly electronic key-cutting machines or diagnostic tools.
Locksmith workshop insurance*
If you operate from a workshop, premises insurance protects your physical location against damage from fire, theft, floods, and other risks. This cover can include the building itself, as well as contents such as machinery, stock, and office equipment. Whether you own or rent your premises, ensuring you have adequate coverage can prevent unexpected repair or replacement costs from disrupting your business.
*Suited can’t currently offer this covers online but please contact us if you are interested. We can help offline.
