How Much Does It Cost to Start a Locksmith Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- Nov 11
- 2 min read
Updated: 1 day ago
Starting a locksmith business can be a profitable venture, but understanding the startup costs is essential before you dive in. From tools and equipment to licensing, insurance, and marketing, your initial investment will vary depending on whether you operate as a mobile locksmith or open a physical shop.
Locksmith services are always in demand, making this an attractive business opportunity for entrepreneurs who want steady income and growth potential. However, success starts with proper planning and budgeting.
That’s where Wexford Insurance comes in—we specialize in helping locksmiths and other trade professionals secure the right insurance coverage to protect their business.
Average Startup Cost
The cost to start a locksmith business typically ranges from $10,000 to $74,000, depending on your business model. A mobile-only operation is on the lower end (around $15,000–$25,000), while a full-service shop with a storefront can exceed $50,000.
Breakdown of Locksmith Startup Costs
1. Licensing and Certification
State Licensing Fees: $100–$500 (required in 15 states)
Training & Certification: $400–$3,000 for online or in-person courses
Professional Certifications: Associated Locksmiths of America (ALOA) exams cost $60–$300
2. Tools and Equipment
Basic Tools: Lock pick sets, rekeying kits, diagnostic tools
Key Cutting Machine: $1,000–$3,000
Full Starter Kit: $5,000–$15,000 for professional-grade equipment
3. Service Vehicle
Used Van Purchase: $12,000–$25,000
Vehicle Outfitting: $5,000–$15,000 for shelving and security features
4. Office or Shop Setup
Lease & Deposit: $1,500–$5,000 per month for a small commercial space
Office Equipment: $1,000–$3,000 for computers and software
5. Marketing and Branding
Website & SEO: $500–$3,000
Initial Advertising: $200–$5,000 for Google Ads, social media campaigns
Struggling to market your business? Visit Contractor Back Office for website SEO and marketing support.
6. Insurance Coverage
Insurance is critical for protecting your locksmith business from liability and property risks. Here are common policies and their average monthly costs:
General Liability Insurance: $42/month (covers third-party injuries and property damage)
Commercial Auto Insurance: $173/month (protects your service vehicle)
Commercial Property Insurance: Included in a Business Owner’s Policy (BOP) at $48/month
Workers’ Compensation: $254/month (required if you hire employees)
Equipment Insurance: $14/month (covers tools and machines)
Total Estimated Cost
Mobile Locksmith Business: $15,000–$25,000
Storefront Locksmith Business: $50,000–$74,000
Final Thoughts
Starting a locksmith business requires careful planning and budgeting. While the upfront investment can feel significant, the long-term profitability and demand for locksmith services make it a worthwhile venture. Don’t overlook the importance of locksmith business insurance—it’s your safety net against unexpected risks. Wexford Insurance specializes in coverage for locksmiths and other trade professionals, ensuring your tools, vehicles, and operations are fully protected.
Ready to safeguard your new business?
Contact us today for a tailored insurance plan that fits your startup budget.
