Sign Business Insurance
Getting insurance for your sign business is crucial.
This is because you will need to protect yourself against a variety of different risks, such as contract violations and employment law disputes.
Business insurance will also be pivotal when it comes to covering your signs and other commercial equipment from damage and/or theft.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Sign Business
General liability insurance is — generally speaking — one of the most important insurance policies for sign businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Even so, your sign business will likely benefit from purchasing additional coverage; this is because a general liability policy will be limited when it comes to the number of risks that it can cover:
- Lost income as a result of temporarily shutting down: Will need business interruption insurance instead.
- Damaged or stolen commercial property: Will need commercial property insurance instead.
- Employment law disputes (e.g., accidental injuries, etc.): Will need workers’ compensation insurance instead.
After you have decided what type of coverage you wish to purchase, you will need to find the right insurer for your sign business.
We recommend going with an online insurer (i.e., an insurer that uses AI in order to offer personalized coverage.) instead of a traditional brick-and-mortar alternative due to the fact that it’s generally the most affordable approach.
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Cost of General Liability Insurance
On average, sign businesses in America spend between $450 - $750 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a sign business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
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) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Discover the best coverage at the lowest rate in our low-cost business insurance review.
Common Situations That General Liability Insurance May Cover for a Sign Business
Example 1: You are installing a sign at the business of a client when you drop some equipment on his luxury sedan, knocking a hole in the roof of the vehicle. Your general liability insurance policy covers damage to customer property. It will pay for repairs to the vehicle.
Example 2: One of your employees is pulling a sign out of the truck when he knocks your client to the ground. She breaks her arm and sues your business. The general liability insurance policy you have will pay for your legal defense costs, including hiring a lawyer.
Example 3: A competing sign business sues your company for libel. Your general liability insurance policy will cover your legal fees when defending against libel lawsuits. It will pay for your lawyer and for a settlement if needed.
Other Types of Coverage Sign Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Product Liability Insurance
You work hard to produce signs that will satisfy your clients, but you know that it is always possible that a client could sue you over your product regardless of your hard work. If they sue you for injuries they say your product caused, product liability insurance will pay your legal defense costs.
Workers’ Compensation Insurance
The employees who help you with your sign work need the coverage that comes with workers’ comp insurance. If they get hurt performing their job duties, the policy will pay for their medical treatment. If they need to avoid working for a while to heal, the policy will help pay for their lost wages.
Commercial Auto Insurance
If you have a vehicle that you use for your sign business, you are likely required by law to have commercial auto insurance. The policy will pay to repair damages to your vehicle after an accident, as well as for medical care for occupants who get injured. It will also protect you from liability if you or an employee are at fault for the accident.
Commercial Umbrella Insurance
An umbrella policy will start paying if you exceed the limits of your general liability insurance policy, which can happen if you lose a big lawsuit. The umbrella policy will kick in when the general liability insurance policy runs out so you do not have to pay the remaining damages out of pocket.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your sign business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Sign Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Yes you do. Getting the right business insurance policies (e.g., workers’ compensation, general liability insurance, etc.) before you begin operating will ensure that you will be covered as soon as a dispute emerges. This is because liability could theoretically arise as soon as you begin interacting with clients.
Not necessarily. Certain exceptions may be written directly into your sign business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.