Cell Phone Repair Business Insurance
Getting insurance for your cell phone repair business is essential.
Cell phone repair businesses need to be protected against claims of things like negligence, breach of contract, and product liability.
For example, an employee carelessly damages a customer’s device during the repair process, or a break-in causes the loss of company property and customers’ devices.
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 Cell Phone Repair Business
General liability insurance is — generally speaking — one of the most important insurance policies for cell phone 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
It is common for cell phone repair businesses to supplement their insurance coverage with a number of other policies in addition to general liability, such as:
- Workers’ compensation insurance
- Commercial property insurance
- Product liability insurance
- Commercial umbrella insurance
Businesses looking to obtain insurance policies are typically faced with the choice between two distinct types of providers:
- Traditional brick-and-mortar insurers — Providers that are often included in this category include Hiscox, Nationwide, and The Hartford.
- Online insurers — Providers that are often included in this category include Next and Tivly.
Our team strongly recommends new and small businesses choose online insurers as this more modern alternative offers the best of both worlds in terms of price and quality.
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Cost of General Liability Insurance
On average, cell phone repair businesses in America spend between $350 - $900 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a cell phone 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.
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Common Situations That General Liability Insurance May Cover for a Cell Phone Repair Business
Example 1: As an employee shows a customer the pressure points on their phone to help them avoid breaking the glass again, the customer stumbles and falls into a glass counter. The impact seriously injures the customer, who demands repayment of their medical costs. General liability insurance would cover the customer’s medical bills and your legal fees in the event of a lawsuit.
Example 2: While moving inventory from a storage facility to your main sales floor, you lose control of the cart and it hits a customer’s car. The impact seriously damages the car and the customer is unable to drive it home. General liability policy would cover the customer’s vehicle repair costs.
Example 3: When a friend slips on spilled soda while walking to your restroom, they break an arm and hit their head. General liability would cover your friend’s medical bills.
Other Types of Coverage Cell Phone 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:
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a work-related accident.
Commercial Property Insurance
You’ve made major investments in your company’s specialized equipment and tools. If you own the building in which you operate, you’re responsible for all business-related property housed there in the event of a fire, burglary, or natural disaster. Commercial property insurance would cover the cost of repairing or replacing your equipment and other business tools after an accident so you can recover quickly.
Product Liability Insurance
When you sell products to the public, there’s always a chance a customer may file a lawsuit if they believe one of your products injured them. Product liability insurance would protect your business by covering your legal fees and any damages awarded in a settlement.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
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 cell phone 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.
Cell Phone 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 highly advised in the majority of cases. For cell phone repair businesses in particular, it is vital to acquire business insurance before it launches to guarantee its financial security in the long run.
Without insurance, your business would be exposed to the financial consequences of any and all claims or risks.
Not necessarily. Certain exceptions may be written directly into your cell phone 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.