General Liability vs Tools Coverage: What Appliance Repair Pros Should Know
- Nate Jones, CPCU, ARM, CLCS, AU
- Jan 16
- 2 min read
Running an appliance repair business comes with multiple risks—from accidental property damage to lost or broken tools. Understanding the difference between general liability insurance and tools coverage is essential for protecting your business and ensuring you’re not caught off guard.
What is General Liability Insurance?
General liability insurance covers your business if you cause damage to a client’s property or someone is injured during a service call. Examples include:
Dropping a refrigerator and damaging the floor
A client or visitor getting injured while you’re repairing an appliance
Legal fees if a customer sues for property damage or bodily injury
This coverage is often considered the core protection for appliance repair businesses because it addresses third-party risks that could otherwise bankrupt a small business.
What is Tools Coverage?
Tools coverage (sometimes called equipment or inland marine insurance) protects your own tools and equipment from:
Theft
Accidental damage
Fire or other disasters
For appliance repair pros, tools are essential. Losing or damaging a set of specialized tools can halt operations, cause lost income, and create costly replacement expenses. Tools coverage ensures you can replace them quickly and continue business as usual.
Why You Need Both
While general liability covers your clients and visitors, tools coverage protects your business assets. Without either:
You risk paying out-of-pocket for damages or injuries (general liability)
You risk losing money and time if tools are lost or damaged (tools coverage)
💡 Pro Tip: Bundling coverage or combining these policies with a Business Owner’s Policy (BOP) can save money while ensuring comprehensive protection.
Getting the Right Coverage
Before requesting a quote, prepare the following information:
Business license and registration
Number of employees
Types of appliances serviced
List and value of tools and equipment
Vehicles used for service calls
Estimated annual revenue
Once ready, you can compare providers. Wexford Insurance specializes in appliance repair businesses and can provide customized coverage for both general liability and tools protection: Get a Quote from Wexford Insurance.
