Sauna Installation Business Insurance

Getting insurance for your sauna installation business is crucial, as you will need to protect yourself against a variety of different risks like property damage, employee-related injuries, and contract violations. 

For example, one of your employees could accidentally damage a client’s property while installing a sauna or could end up injuring themselves or another party. 

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 Sauna Installation Business

General liability insurance is — generally speaking — one of the most important insurance policies for sauna installation businesses.  

Some of the risks general liability insurance covers are:

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

Having said that, your business will likely benefit from purchasing additional insurance policies, such as: 

  • Commercial property insurance will cover the cost of replacing or repairing damaged or stolen sauna equipment. 
  • Workers’ compensation insurance will cover the cost of reimbursing an employee in the event of a dispute.
  • Business interruption insurance will cover part of your lost income in the event that you are required to shut down temporarily. 

You will also need to find the right insurance provider for your sauna installation business. As of 2023, there are two different types to choose from, both of which come with different pros and cons: 

  • Traditional brick-and-mortar insurers: Popular examples include The Hartford and Nationwide. These types of insurers have been operating for over a century, and have a long history of financial success. 
  • Online insurers: Popular examples include Next Insurance and Tivly. These types of insurers use AI in order to offer personalized coverage — rather than an insurance agent — and so can be significantly more affordable. 

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Cost of General Liability Insurance

On average, sauna 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 sauna installation business to other professional industries using the graph below:

Graph showing average price of general liability insurance prices per industry

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 Sauna Installation Business

Example 1: Your employee is bringing some tools into a client's yard for an installation job when he runs into the client. He knocks her to the ground and she breaks her arm. She decides to sue your company for damages. Your general liability insurance policy will pay for your legal defense costs, including hiring a lawyer.

Example 2: A competing sauna installation business has sued your company for libel. You do not believe that there is any validity to their accusations, but you also understand that you need an attorney to protect your interests. The general liability insurance policy you have will cover legal defense costs against libel accusations.

Example 3: A client is visiting your place of business to discuss sauna installation options. On his way into the restroom, he slips on wet tiling and breaks his tailbone. He asks that you pay for his medical treatment. Your general liability insurance policy will likely pay for the treatment if you file a claim.

Other Types of Coverage Sauna 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 of the most common types of coverage:

Professional Liability Insurance

You are serious about your installation work and strive to do a good job every time. However, even with your best effort, there is still a chance that a client could sue you for a mistake you made—or they think you made. Professional liability insurance will pay for your legal defense costs in such a situation. It will pay for your attorney and for a settlement if you need to settle the lawsuit.

Workers’ Compensation Insurance

You need your employees in good health to help you install saunas for your clients. If they get injured, you want to know that they can get the medical care they need for a fast recovery. Workers’ compensation insurance will pay for the treatment of work-related injuries. It will also help cover lost wages for employees who cannot work while injured. Your state likely requires you to have workers’ comp coverage if you have employees.

Commercial Auto Insurance

You should cover the vehicle you use for your installation work with a commercial auto policy. Your policy will pay for repairs or replacement of your vehicle if you are in an accident. It will also pay for medical treatment for the occupants of the vehicle who get injured. If you or your employees are responsible for the accident, the policy will also pay for repairs for the other vehicle and medical care for its occupants.

Commercial Umbrella Insurance

You have a general liability insurance policy to protect your business from most general liabilities. You can also get an umbrella policy to add another layer of protection. If you exceed the limits of your general liability insurance policy—like if you lose a big lawsuit—the umbrella policy will kick in and start paying the remaining 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 sauna 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.

Sauna Installation Business Insurance FAQ

Can I buy business insurance online for my sauna 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 sauna installation business?

Yes, you do. This is because business insurance will protect your business’s equipment from potential damage or theft, as well as protect yourself from potential employment-law disputes or customer-related claims.

For a sauna installation business, we recommend getting general liability, workers’ compensation, and commercial property insurance.

Will insurance protect my sauna installation business from everything?

Not necessarily. Certain exceptions may be written directly into your sauna installation 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.

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