Garage Door Installation and Repair Business Insurance
Getting insurance for your garage door installation and repair business is essential.
Garage door installation and repair businesses need to be protected against things like claims of property damage, product liability, and misrepresentation.
For example, an employee may accidentally damage a customer’s property during a repair job, or a faulty installation process could lead to a customer getting injured.
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 Garage Door Installation and Repair Business
General liability insurance is — generally speaking — one of the most important insurance policies for garage door installation and 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
Due to the extent of the liabilities your garage door installation and repair business can expect to face, several policies will likely be required on top of general liability, such as:
- Product liability insurance
- Workers’ compensation insurance
- Commercial property insurance
- Commercial auto insurance
- Commercial umbrella insurance
- Business interruption insurance
There are two general types of options available to your business when it comes to deciding which provider to obtain your insurance from. These types are:
- Traditional brick-and-mortar insurers — This group commonly includes reputable firms (such as Nationwide and The Hartford). While known for their trustworthiness and longevity, these insurers may charge higher premiums to cover the cost of operating physical storefronts and employing insurance agents.
- Online insurers — This second group, which includes firms like Tivly and Next, are able to provide their customers with far more cost-effective insurance solutions by foregoing many of the business expenses associated with the previous group. Plus, by utilizing AI, they are able to offer highly personalized coverage.
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Cost of General Liability Insurance
On average, garage door installation businesses in America spend between $500 - $1,500 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a garage door installation and repair 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.
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Common Situations That General Liability Insurance May Cover for a Garage Door Installation and Repair Business
Example 1: While showing a partially installed garage door to a customer, the door falls on the customer and severely injures them. General liability insurance would cover the customer’s accident-related medical bills.
Example 2: A tension spring releases during installation and severely damages a nearby car. General liability insurance would pay for the vehicle repair costs.
Example 3: A customer slips on a wet floor in your showroom and injures themself. General liability insurance would cover the customer’s medical bills and your legal fees in the event of a lawsuit.
Other Types of Coverage Garage Door Installation and 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:
Product Liability Insurance
Because you sell products alongside installation services, there’s always a chance a customer may file a lawsuit if they believe one of your products caused significant harm—such as if a malfunctioning door sensor leads to a child trapped under a heavy door. Product liability insurance would protect your business by covering your legal fees and any damages awarded in a product-related lawsuit.
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 benefits stemming from a work-related accident.
Commercial Property Insurance
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, inventory, and supplies after an accident so you can recover quickly.
Commercial Auto Insurance
Any truck or van you use primarily for business requires commercial auto insurance to protect the vehicle, driver and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured, but also sufficient protection for any special equipment or supplies you carry to job sites in your vehicles.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they exceed the limits of your primary coverage—such as a claim involving a person’s death caused by a flying tension spring. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Business Interruption Insurance
If a fire, tornado, or other major disaster forces you to temporarily close, business interruption insurance would help cover your bills and financial losses until you can reopen. You can usually purchase business interruption insurance as part of a business owner policy or BOP.
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 garage door installation and 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.
Garage Door Installation and Repair Business Insurance FAQ
Can I buy business insurance online for my garage door installation and repair 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 garage door installation and repair business?
While true for all businesses, it is particularly important that your garage door installation and repair business obtains sufficient business insurance before it opens shop due to the number of risks it is likely to be exposed to.
Ignoring the importance of insurance at this stage of your business can seriously stunt its growth in the long term.
Will insurance protect my garage door installation and repair business from everything?
Not necessarily. Certain exceptions may be written directly into your garage door installation and repair business insurance policy, and some perils may be entirely uninsurable.
Do I need business insurance if I already have an LLC?
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.