Dent Removal Business Insurance
Getting insurance for your dent removal business is essential.
To ensure the safety and success of dent removal businesses, it is essential to protect them from the intrinsic risks of their operations, for which insurance is crucial.
By obtaining insurance, businesses can prevent themselves from property damage and protect against liability for bodily injury or financial loss.
For example, in the course of delivering packages, an employee may be injured in a road accident. In such an instance, insurance would cover not only his medical expenses but also the cost of his wages while he is away from work.
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 Dent Removal Business
General liability insurance is — generally speaking — one of the most important insurance policies for dent removal businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
While general liability insurance provides coverage for a variety of risks, it may not be quite sufficient to cover all the risks that your business may face. For instance, some risks may require coverage from specialized policies, such as those that offer:
- Commercial property coverage: Policies of this kind will offer protection if packages are damaged during storage or transit. Coverage will also extend to property that is damaged by vandals or stock that is stolen by burglars or property damaged by fire.
- Commercial auto insurance: This legal requirement is good public policy. Auto insurance ensures funds are available for repairs and for providing compensation to accident victims.
- Business income coverage: This policy will indemnify a business for loss of income resulting from an adverse event, such as a fire, that interrupts operations, as well as cover regular operating expenses, like wages, that must continue to be paid.
The insurance market consists of two basic types of insurers:
- Traditional brick and mortar insurers: These insurers tend have higher overhead and higher premiums. They offer policies of the conventional kind that fit established categories, such as fire, life and auto insurance.
- Online insurers: Insurtechs, like Lemonade and Next, have lower overhead which usually equates to lower premiums. They tend to offer products and services that may not be offered by traditional insurers. For example, Insurtechs may offer insurance on-demand insurance that can be purchased and activated instantly for a specific period, such as a day or a week.
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Cost of General Liability Insurance
The average dent removal business in America spends between $450-$1,500 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a dent removal 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 Dent Removal Business
Example 1: A new employee is trying to sand a repair down to paint it when he loses control of the sander, causing extensive damage to the customer’s vehicle. The general liability insurance policy you carry should cover the cost of repairing the damage.
Example 2: One of your customers is walking into the shop to review the repairs to his car when he trips over an air compressor hose, falling and breaking his wrist. He asks that your business pay for his medical treatment. Your general liability insurance will likely cover this expense.
Example 3: A customer is walking from the parking lot into your shop when she trips over some broken asphalt and breaks her arm. She decides to sue your business. Your general liability insurance will cover the cost of your legal defense. It will also pay for a settlement if necessary.
Other Types of Coverage Dent Removal 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
The state that you do business in most likely requires employers to carry workers’ compensation insurance. If one of your employees is injured performing job-related duties, your workers’ comp policy will pay for their medical treatment. If the employee cannot work due to the injuries, the policy will help pay for lost wages while they recover.
Commercial Property Insurance
You put a lot of money into the equipment and supplies you need to operate your dent removal business. But if you lose your equipment, like if a fire were to break out and destroy it, then you might have a tough time financially replacing all of it. However, if you have a commercial property insurance policy, you can file a claim with your insurer after such a loss. If the loss was caused by a covered event, you should be able to get compensation to help pay for replacement equipment.
Commercial Umbrella Insurance
The general liability insurance you carry is sufficient for protecting your business in most cases, but there are exceptions—like if your company is sued and loses a lawsuit that requires you to pay major damages. If the limits of your general liability insurance are exceeded, you could be left holding the tab. But if you have an umbrella policy, it will kick in where the general liability insurance leaves off so you do not have to pay out of pocket.
Commercial Auto Insurance
A commercial auto insurance policy is necessary for any vehicle that is used for business. With such a policy, your commercial vehicles are covered in the event of an accident. The policy will pay for fixing or replacing vehicles and for medical treatments for the injured. It will also pay your legal costs if you cause an accident and are sued by the other driver.
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 dent removal 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.
Dent Removal 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. Purchasing business insurance is just as necessary and essential as other preliminary activities. In some instances, insurance will be required if the business is to operate legally.
For example, commercial auto insurance if it has vehicles; workers’ compensation insurance if it has employees. Importantly also would be liability insurance that protects against risk of physical injury, property damage, and financial loss.
Not necessarily. Certain exceptions may be written directly into your dent removal 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.