(888) 900 0205Insurance For Upholstery Shops
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 Insurance for Upholstery Shops
General Liability Insurance (GL) is the first layer of protection every upholstery shop needs. It’s designed to cover the basics if you’re found responsible for any property damage or personal injury that happens at your shop or as a result of your work. This is especially important when you’re working with customers’ furniture, where accidents can happen, and repairs or replacements may be costly.
What’s Covered?
- Each Occurrence: This takes care of incidents where someone gets hurt or property is damaged during a single event at your shop.
- Damage to Rented Premises: If you rent your upholstery shop space, this covers damage to the building that you may be responsible for (like fire or water damage).
- Medical Expenses: Covers the cost of medical care for non-employees who are injured at your shop.
- Personal and Advertising Injury: Helps if you're sued over claims of slander, libel, or other types of advertising-related harm.
- General Aggregate: The max amount your insurance will pay out for all claims during a policy period.
- Products/Completed Operations: Covers issues that arise after you've finished working on a customer’s item. For instance, if a couch you reupholster has a structural failure after delivery, this could help cover any claims.
BOP (Business Owner’s Policy)
For a comprehensive solution, a Business Owner’s Policy (BOP) is ideal for upholstery shops. A BOP bundles General Liability Insurance and Commercial Property Insurance into one convenient package. It’s typically more affordable than buying each type of coverage separately and offers protection for both legal claims and damage to your property.
- Coverage: Combines liability and property insurance, protecting your business from common risks like injuries and property damage.
- Importance: Ensures you can keep your business running after incidents like theft, fire, or lawsuits without severe financial strain.
BOP Claim Example: Your upholstery shop catches fire due to faulty wiring, damaging several pieces of furniture in the shop. A BOP would cover the costs to replace or repair the damaged items, along with the costs to repair your shop so you can reopen quickly.
What Else Does an Upholstery Shop Need?
Aside from General Liability, BPP, and Workers’ Compensation insurance, you might need a few other types of coverage, depending on your business setup.
- Commercial Auto Insurance: If you or your employees use a vehicle to transport materials or furniture, this insurance will cover damage to the vehicle and liability for any accidents.
- Business Interruption Insurance: If a fire, flood, or another disaster temporarily shuts down your shop, this insurance helps replace lost income until you’re back in business.
- Equipment Breakdown Insurance: This covers the cost of repairing or replacing broken machinery essential to your operations, like sewing machines or fabric cutters.