Upholstery shops provide a great service to their customers. By offering upholstery services, your customers do not have to throw away perfectly good furniture when they want to create a new look and style in their home. Your company relies heavily on good word of mouth advertising to expand your business, so be sure to provide the most protection to your company and customers that you can by buying the right types of business insurance.
General liability is one of the most important types of small business insurance you can buy for your upholstery shop, because you have a regular stream of customers coming in your door. General liability protects you from everyday hazards and unexpected events that may bring harm to your customers or their property.
General Liability Insurance Includes:
- Premises Liability - Premises liability insurance is the part of your general liability coverage that protects your customers the most. It is designed to provide protection in the event that a customer injures themselves while at your business, or when their property is damaged on your business premises. If a customer accidentally strains their back by knocking over a heavy roll of upholstery fabric for example, your premises liability coverage will pay for their hospital visit and follow-up medical care.
- Products Liability - Products and advertising liability coverage protects you from litigation and accidents that arise due to products you sell, or mistakes in your company advertising. If your upholstery shop sells vacuum cleaners for example, and one model is found to have defects that cause a house fire for your customer, your company can be sued for those damages. Your products liability coverage will pay the damages along with legal defense fees and associated expenses.
- Completed Operations - Completed operations coverage is designed to protect you from financial losses caused by problems that arise after you have finished a customer contract. If for example, you re-upholster a couch for your customer and they discover after the fact that they are allergic to the fabric you used, they may sue your company for injuries and damages. Completed operations coverage pays those damages as well as your legal defense fees if necessary.
Business Owners Policy
All of the general liability business insurance coverage options can be included with another form of insurance known as a business owners policy, or BOP. A BOP adds tangible asset protection for your upholstery shop and includes protection for intangible assets as well. You can select just the coverage you need for your company. Examples of options include:
- Buildings and Contents
- Business Income and Extra Expense
- Electronic Data
- Newly Acquired or Constructed Buildings
- Employee Dishonesty Coverage
If you or your employees drive for business purposes, such as making upholstery deliveries to your customers, you need a business auto insurance policy. This can protect you from suffering financially when you or an employee is involved in an auto accident.
You are required by law to protect your upholstery shop employees with workers comp coverage. This insurance will pay their medical bills and recovery expenses if they are ever hurt while working.
Umbrella insurance provides your company with additional coverage over the maximum amounts provided by your other business insurance policies.