Last Updated: May 31, 2024, 7:08 am by TRUiC Team

Watch Repair Business Insurance

Getting insurance for your watch repair business is essential.

This is because watch repair businesses need to be protected against things that could foreseeably occur and cause them financial damage, such as property damage claims, theft, and indemnity claims. 

For example, an employee could act negligently and accidentally damage a customer’s watch while repairing it, or a break-in on your property could lead to the loss of customers’ watches. 

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 Watch Repair Business

General liability insurance is — generally speaking — one of the most important insurance policies for watch 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

Having said that, it is important to understand that not all watch repair businesses will be “fully” covered with a simple general liability policy.

This means that — depending on your business’s specificities — it may be a good idea to purchase additional coverage, such as:  

  • Workers’ compensation: Protects your business from employment law-related risks, such as those that relate to disability benefits and personal injuries. 
  • Business income: Covers part of your lost income in the event that you are required to temporarily close down due to a covered risk. 
  • Errors and omissions: Protects your business from negligent acts or omissions that may be committed by you or an employee (also known as professional liability). 

When acquiring your business coverage, you will also need to decide what type of business coverage provider you will use; there are two options available as of 2024:

  • Online insurers (e.g., Next Insurance, etc.). 
  • Brick-and-mortar insurers (e.g., Nationwide, Hiscox, etc.). 

In most cases, we recommend going with an online insurer as a small business. This is because they benefit from significantly lower operating costs and can thus offer personalized coverage at much more affordable rates. 

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Cost of General Liability Insurance

On average, watch repair businesses in America spend between $350 - $750 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a watch repair 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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Discover the best coverage at the lowest rate in our low-cost business insurance review.

Common Situations That General Liability Insurance May Cover for a Watch Repair Business

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Example 1: A customer is visiting your store. She leans on one of your display cases and the glass breaks, cutting her hand and her arm. She demands that your business pay for her medical treatment. Your general liability insurance would likely cover the cost of her medical care for her injuries.

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Example 2: One of your customers is walking in from your parking lot when she slips on some ice and breaks her arm. She decides that you are responsible for her injuries and sues your business. The general liability insurance you carry will pay for your legal defense costs in such a situation as well as any payouts or settlements if you need to settle the case out of court.

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Example 3: A customer leaves a collection of valuable watches with you for cleaning and repair. You ask an employee to bring the box of watches to your other store. He is loading the car when he sets the box down behind the vehicle. Another car drives by and runs over the box, smashing the box and its contents. Your general liability insurance would likely pay to replace the watches.

Other Types of Coverage Watch 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:

Commercial Property Insurance

You have probably invested a significant amount of capital in your watch repair business. It would be costly to have to replace your equipment, supplies, inventory, and other commercial property if it was damaged in an event like a fire. But if you have commercial property insurance, you do not have to pay for all the replacement costs yourself. As long as the damage was caused by a covered event, you can file a claim and get financial assistance to repair or replace your property.

Professional Liability Insurance

While you do your best to serve your customers, there is always the possibility that one of them could claim that your professional services caused them harm. If a customer was to sue your business due to a mistake you made, your professional liability insurance would pay for your legal defense costs. It would pay for not only an attorney but also for a settlement if you needed to settle the case out of court.

Workers’ Compensation Insurance

Most states require employers to carry workers’ compensation insurance. The policy will pay for medical treatment for your employees if they are injured performing work-related duties. It will also pay for some of the lost wages employees miss while recovering from their injuries.

Commercial Umbrella Insurance

A commercial umbrella policy is designed to take over where your general liability insurance policy leaves off. For example, if your business was to lose a major lawsuit and the damages you had to pay exceeded your general liability limits, your umbrella policy would pay the remaining damages up to its own limits.

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 watch 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.

Watch Repair 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.

Generally speaking, yes. This is because you will not know when you will need to actually use your business insurance, and not having it when you need it can end up costing you tens of thousands of dollars in the long term. This is particularly the case when relating to bodily injuries or indemnification claims. 

Not necessarily. Certain exceptions may be written directly into your watch repair 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.