Last Updated: May 17, 2024, 8:44 am by TRUiC Team

Furniture Upcycling Business Insurance

Getting insurance for your furniture upcycling company is essential.

There are inherent risks in running any business, such as bodily injury and breach of contract claims. To protect against these risks, furniture upcycling companies require business insurance.  

For example, a customer could slip and fall on your premises, or an employee could be hurt operating machinery.  

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 Furniture Upcycling Business

General liability insurance is — generally speaking — one of the most important insurance policies for furniture upcycling companies. 

Some of the risks general liability insurance covers are:

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

General liability insurance covers a broad range of risks, but your furniture upcycling company may face risks it doesn’t cover. As a result, we suggest purchasing additional specialized policies, such as: 

  • Commercial property insurance: 
  • Commercial auto insurance
  • Commercial umbrella insurance
  • Business interruption insurance

When acquiring your business coverage, you will generally be able to choose between the following two types of insurers:

  • Traditional brick and mortar insurers: Traditional insurers comprise a lot of big names like Nationwide and The Hartford. They typically use agents to sell insurance at local offices, which means they usually have a higher overhead.  
  • Online insurers: Online insurers like Corvus and Next use AI to sell policies rather than agents, and they sell insurance on their websites rather than at physical offices. Online insurers typically are faster and cheaper than traditional insurers and therefore are best for most small businesses.  

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Cost of General Liability Insurance

The average furniture upcycling business 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 furniture upcycling 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 affordable business insurance review.

Common Situations That General Liability Insurance May Cover for a Furniture Upcycling Business

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Example 1: One of your employees is hauling a load of furniture on a hand truck to put into the car of a customer. He loses control of the load, and it rolls rapidly downhill to strike another customer’s luxury sedan. Your general liability insurance policy is designed to cover damage to customer property.

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Example 2: The new logo you had made for your business represents your company perfectly, so you begin to use it on all your marketing materials. Unfortunately, another company feels your logo is too similar to theirs and files a lawsuit against your business. The general liability insurance coverage you have will pay for your legal defense in such a situation, as well as for any payouts or settlements if they are necessary to resolve the case.

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Example 3: A visitor to your business is checking out your renovation process for furniture. An employee accidentally drops one end of a heavy sofa on the visitor’s foot. He sustains several broken bones that require medical care. He demands that your business pays for his medical treatment since the accident happened in your place of business. Your general liability insurance would likely cover this cost.

Other Types of Coverage Furniture Upcycling 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

You put a lot of money into acquiring your tools, equipment, supplies, and the various pieces of furniture you are upcycling. If you were to lose all of these things, such as in a fire, they would be expensive to replace. But with commercial property insurance, you do not have to cover the costs all on your own. You can file a claim with your insurer to get funds for replacements so you can quickly get back to business.

Product Liability Insurance

The furniture that you upcycle and sell to customers could put you at risk of certain liabilities. For example, if a customer gets hurt while using a piece of furniture you sold and then files a lawsuit against your company, you could face expensive legal bills. To avoid needing to pay for your own legal costs out of pocket, it can be quite helpful to have a product liability insurance policy to protect your business. If you have product liability insurance, your policy will pay for your legal costs, including any potential settlements.

Commercial Auto Insurance

You will likely have a truck or other vehicle to pick up and transport furniture. Most states require businesses to carry commercial auto insurance policies if they have vehicles they use primarily for business. But there are more benefits than just meeting the legal requirements of your state. Your commercial auto policy will pay for property damage and medical treatment in the event of an auto accident.

Workers’ Compensation Insurance

If you have employees at your upcycling business, you need workers’ compensation insurance to protect both them and your business. It protects your employees by covering the cost of medical treatment for work-related injuries and by helping to pay for lost wages while they recover from those injuries. It protects your business by ensuring that you meet the likely legal mandate of your state that employers carry workers’ comp.

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 furniture upcycling 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.

Furniture Upcycling 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, business insurance should be purchased before you open shop. Without coverage from the beginning, your furniture upcycling business could face risks from unforeseen events. 

Moreover, some states require certain types of insurance, such as workers’ compensation and commercial auto insurance.

Not necessarily. Certain exceptions may be written directly into your furniture upcycling 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.