Last Updated: May 23, 2024, 12:46 pm by TRUiC Team

Bike Repair Business Insurance

Getting insurance for your bike repair business is essential.

Bike repair businesses need to be protected against claims originating from things like property damage, personal injury, breach of contract, and product liability.

For example, your shop agrees to fix a customer’s bike by a specific date but is unable to do so, or an employee injures themselves while on the job and requires medical leave.

We’ll help you find the most personalized and affordable coverage for your unique business.

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Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Bike Repair Business

General liability insurance is — generally speaking — one of the most important insurance policies for bike repair businesses. 

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

Besides general liability, your bike repair business will want to take a look at several other policies to ensure its coverage is optimized. Some of these include:

  • Commercial property insurance
  • Professional liability insurance
  • Workers’ compensation insurance
  • Product liability insurance

There are typically two general types of insurers you can buy from when looking for business insurance:

  • Traditional brick-and-mortar insurers: Describes providers that operate out of a physical location and often employ an insurance agent to offer tailored quotes. This category includes some of the most reputable firms in the business, such as Nationwide and The Hartford
  • Online insurers: Describes providers that leverage powerful AI technology in order to provide customized quotes to customers online. This type of insurer is growing in popularity because it is able to match the accuracy and personalization of traditional insurers for a fraction of the cost.

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Cost of General Liability Insurance

The average bike repair shop in America spends between $500-$1,500 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a bike repair 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.

Graph showing average price of general liability insurance prices per industry

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Find the Best Rate

Discover the best coverage at the lowest rate in our cheapest business insurance review.

Common Situations That General Liability Insurance May Cover for a Bike Repair Business

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Example 1: A customer asks to take a bike out for a test ride. He loses control and falls off the bike, breaking his arm. He sues your business. Your general liability insurance will pay for your legal fees, including a settlement if one is necessary.

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Example 2:  The child of a customer is exploring your shop while you talk to her father. She falls into a stack of tools and equipment, sustaining injuries that require medical care. Her father asks that you pay for her treatment. Your general liability insurance would likely cover this expense.

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Example 3:  A competing bike repair shop has sent you a letter, claiming you slandered their business when you spoke to the local news station. They intend to file a lawsuit. Your general liability insurance will pay for an attorney and cover the cost of a settlement if one is necessary.

Other Types of Coverage Bike Repair 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:

Commercial Property Insurance

All of the supplies and equipment you have invested in to operate your bike repair shop would be costly to replace if you were to lose them in a fire or other unexpected event. But if you have commercial property insurance, you can file a claim with your insurer as long as the loss was caused by a covered event, and you should be able to get money to help with replacement costs. 

Professional Liability Insurance

There is always a chance that a customer could claim that your work caused them injury. If you are sued by a customer, for example if a customer claimed you made a mistake in your repair work that caused her injury, your professional liability insurance would pay for your legal costs.

Workers’ Compensation Insurance

Most states require employers to carry workers’ compensation insurance, so if you have employees, chances are you need a workers’ comp policy. If an employee is hurt performing job-related duties, the policy will pay for his or her medical treatment. The policy will also pay for lost wages If the employee cannot work while they are recovering.

Product Liability Insurance

If your business sells products, like bike accessories, a product liability policy will protect you in case a customer claims one of your products caused him or her injury. If a customer sues your business over a product you sold, your policy would cover the cost of hiring an attorney. It would also cover the cost of paying a settlement if you needed to settle the case out of court.

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 bike repair 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.

Bike Repair 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.

It is strongly advised, yes. Your bike repair business will need sufficient business insurance prior to launching in order to keep itself protected from the potential risks that are inherent to the industry.

In some cases, it is not only a recommendation, as it’s common for bike repair businesses to need certain types of insurance policies in order to operate legally (e.g., workers’ comp, commercial auto, etc.).

Not necessarily. Certain exceptions may be written directly into your bike repair 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.