Every christmas lights installation business needs insurance. Knowing which type of insurance you need and the best place to get it is the next step.
This article will cover the main types of business insurance and help you find the best christmas lights installation business insurance.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Christmas Lights Installation Business
The most common and comprehensive type of christmas lights installation business insurance is general liability insurance. We recommend general liability insurance as your first line of defense against a variety of the most general and commonly occurring claims.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
While a christmas lights installation business isn’t legally required to carry general liability insurance, operating without it is extremely risky. If your christmas lights installation business is sued, you could face fees totaling hundreds of thousands of dollars (or more).
Cost of General Liability Insurance
On average, christmas lights installation business in America spend between $400 - $700 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a christmas lights installation business to other professional industries using the graph below:
Several factors will determine the price of your policy. These include your:
- 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.
Common Situations That General Liability Insurance May Cover for a Christmas Lights Installation Business
Example 1: While setting up the Christmas lights in a client’s home, the technician activates the wrong wire and causes an electrical fire. General liability insurance will likely cover any property damage that may result from the accident.
Example 2: A technician accidentally leaves a bucket of tools in the middle of an outdoor walkway during the unveiling of a client’s light installation. This obstruction causes the client to trip, fall, and break their wrist. General liability insurance would likely cover the injuries and follow-up appointments.
Example 3: A local competitor believes that your logo too closely resembles their own. They sue you for copyright infringement as well as lost income. General liability will likely help cover the cost of either fighting the claim in court or settling outside of it.
Check out our review of the Best Small Business Insurance Companies.
Other Types of Coverage Christmas Lights Installation 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 other types of insurance all Christmas lights installation business should obtain:
Professional Liability Insurance
Professional liability insurance is there in case you or your employees make a mistake or skip a step while on the job. No matter how skilled your technicians are, light installations will always be a hazardous line of work. This coverage is an extension of general liability insurance and provides specific coverage should your employees’ work cause major damage or physical injury to your clients.
Commercial Auto Insurance
Employees using their vehicles to get back and forth to clients’ homes will need commercial auto insurance to protect themselves, the vehicle, and other people on the road. Commercial auto insurance is likely to cover an at-fault accident, repairing any vehicles or property that may have been damaged. It will also cover the cost of treating bodily injuries.
In addition to the policies outlined above, there are a few other types of coverage your Christmas lights installation business may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.
Because Christmas lights are a seasonal business, many owners will operate their business from their homes. Should a work-related accident or injury occur on the premises, homeowner’s or renter’s insurance might not cover the damages.
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 christmas lights installation 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.
Business Insurance Is the Best Way to Protect Your Business
If you're starting a new business, then you need business insurance. It's as simple as that. The protection offered by an LLC will protect your personal assets, but your business's assets are still open to liability in the case of a lawsuit or other loss.
Be sure that everything you've built is safe by getting business insurance.
Christmas Lights Installation Business Insurance FAQ
Can I buy business insurance online for my christmas lights installation business?
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.
What is included in a business owner’s policy?
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.
What is the difference between business insurance and general liability insurance?
"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.
Do I need insurance before I start a christmas lights installation business?
You should invest in business insurance coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it’s best to be proactive when it comes to protecting your assets. After all, you can’t buy insurance to cover a loss that has already occurred.
Will insurance protect my christmas lights installation business from everything?
Not necessarily. Certain exceptions may be written directly into your christmas lights installation business insurance policy, and some perils may be entirely uninsurable.
Is general liability the same as business owners?
A general liability insurance policy covers only liability losses. A business owner's policy covers both liability and property losses.
How do I choose the best general liability insurance?
The best general liability coverage for your business really depends on the amount of coverage you’re comfortable with and how often you expect to file a claim. A relatively safe business with a very low risk of accident or legal liability could opt for lower premiums with higher deductibles.
However, if you are in an accident or injury-prone industry or are making advertising claims about the effectiveness of your service or product, you may wish to consider more extensive coverage. We recommend using a digital insurance provider like Next Insurance.
Do I need business insurance if I already have an LLC?
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.