Common Insurance Mistakes Appliance Repair Businesses Make When Shopping
- Nate Jones, CPCU, ARM, CLCS, AU
- Jan 16
- 2 min read
Insurance is one of the most important investments for appliance repair businesses. From protecting your tools to covering liability and employee injuries, the right coverage safeguards your business. However, many owners make mistakes when shopping for insurance, which can lead to underinsurance, overpaying, or coverage gaps. Here’s what appliance repair pros should know.
Mistake 1: Not Understanding What Coverage You Need
Many business owners assume that one policy fits all needs. In reality, appliance repair businesses often require multiple coverages:
General Liability Insurance: Covers property damage and third-party injuries.
Workers’ Compensation: Protects employees and shields your business from lawsuits related to workplace injuries.
Commercial Property and Tools Coverage: Replaces stolen or damaged tools and equipment.
Commercial Auto Insurance: Covers vehicles used for service calls, including accidents and liability claims.
Failing to understand which policies you need can leave your business exposed to financial risk.
Mistake 2: Focusing Only on Price
Insurance cost is important, but choosing the cheapest policy often leads to insufficient coverage. For example, low-cost general liability may have low limits, leaving your business vulnerable to lawsuits. Look at coverage limits, exclusions, and deductibles, not just premiums.
💡 Tip: A policy that seems more expensive upfront can save thousands if an accident occurs.
Mistake 3: Ignoring Tools and Equipment Coverage
Tools and equipment are essential for any appliance repair business. Many owners assume general liability covers lost or damaged tools, but it doesn’t. Without tools coverage, theft, fire, or accidental damage could halt operations and create significant replacement costs.
Mistake 4: Not Reviewing State Requirements
Insurance requirements vary by state, especially for workers’ compensation and commercial auto coverage. Some owners assume coverage in one state applies nationwide or fail to update policies when expanding service areas. This can result in fines, penalties, or uncovered claims.
Mistake 5: Failing to Work With a Specialist
Shopping for insurance without guidance often leads to mistakes. General agents may not understand the unique risks of appliance repair businesses. Working with specialists like Wexford Insurance ensures you get tailored coverage that meets your needs and protects your business effectively.
Get a personalized quote today: Get a Quote from Wexford Insurance.
