Top Business Insurance Options for Furniture Repair and Reupholstery Services with NAICS Code 811420

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Learn about the important business insurance policies furniture repair and reupholstery shops should consider like general liability, property, auto and workers' comp to protect their business.

Key Takeaways

  • General liability insurance protects against injuries to customers and property damage claims
  • Property insurance replaces damaged tools, equipment and inventory after losses
  • Workers’ compensation provides benefits for employee injuries on the job
  • Commercial auto covers vehicles used for pickup/delivery of furniture

Introduction

Furniture repair and reupholstery businesses face various risks that can impact their finances and operations. Having the right insurance protects the business and allows owners to focus on serving customers. This article examines the key insurance policies this industry should consider.

General Liability Insurance

General liability insurance is an important policy for reupholstery and furniture repair businesses to protect against financial risks. It covers costs associated with accidents, injuries, defective work, lawsuits, bodily injury, property damage, products liability and more that could otherwise severely impact operations. A typical annual premium is around $1,500, though pricing can vary depending on factors like the number of employees, annual revenue, claims history and safety practices of each individual business.

Category List
Benefits
  • Protection against third-party bodily injury and property damage claims
  • Defense against lawsuits from clients if an accident occurs on your premises
  • Reimbursement of medical expenses if a customer is injured by faulty workmanship
  • Coverage for damage to customers’ furniture being repaired on your premises
  • Protection for errors and omissions such as faulty workmanship or advice
  • Coverage extended to your business activities off premises
  • Demonstrates financial responsibility to customers and clients
Use Cases
  • Bodily injury or property damage caused during operations
  • Products liability claims if defective work causes property damage or bodily injury
  • Injury to customers or employees while on business premises
  • Fire damage to customer or third party property
  • Damages to furniture or other property while in possession for repair
  • Lawsuits brought by customers unsatisfied with repair or reupholstery work

Based on industry data and risk factors, general liability insurance for reupholstery and furniture repair businesses with NAICS code 811420 is typically priced at an average of $1,500 per year. Pricing can vary based on factors like number of employees, annual revenue, claims history, and safety practices. This estimate was derived from insurance rate quotes and policies for similar small businesses performing furniture repair and reupholstery work.

Estimated Pricing: $1,500

Property Insurance

Property insurance provides essential protection for businesses in the reupholstery and furniture repair industry. It covers costs to repair or replace tools, equipment, furniture and other business property if damaged by events like fire, smoke, wind or water. Without this coverage, a single incident could severely impact finances and operations. Additionally, property insurance provides liability protection if property damage or loss causes injury to others. It also insures valuable inventory, materials and finished goods. For many furniture repair shops, property insurance ensures they can continue operating even after experiencing covered losses. Property insurance is priced at an average of $1,200 annually for businesses in this industry.

Category List
Benefits
  • Protects against property damage or theft from events like fire, smoke, wind or hail
  • Covers equipment, tools, furniture and vehicles used for business
  • Reimburses for rebuilding costs or replacing inventory and equipment after a loss
  • Covers loss of income or extra expenses if business must temporarily close due to covered property loss
  • Provides liability protection if property damage or loss causes injury to others
  • Insures valuable merchandise, materials, inventory and finished goods
  • Protects cash from theft or damage on the business premises
Use Cases
  • Coverage for damaged, destroyed or stolen business property and equipment like furniture, tools, machinery and vehicles used in the business
  • Protection against losses from fire, smoke, lightning, explosions, windstorms, hail, water damage, theft, vandalism and more
  • Coverage for furniture and other items stored off premises or in transit
  • Business interruption or loss of income coverage if property damage prevents the business from operating

Based on industry data and average claims, the estimated annual pricing for property insurance for a business in the reupholstery and furniture repair industry is around $1,200. This pricing factors in the average size of business, equipment value, past claims within the industry, and risk level associated with the operations. Equipment such as sewing machines, sanders and power tools are moderatively exposed to risk of damage.

Estimated Pricing: $1,200

Workers Compensation Insurance

Workers compensation insurance provides vital protections for businesses in the reupholstery and furniture repair industry where employees frequently face risks of on-the-job injuries from cutting and sanding materials, operating machinery and power tools, and exposure to chemicals. It ensures guaranteed benefits for injured employees to cover medical costs and lost wages while also protecting businesses from costly liability lawsuits. With hazards inherent in tasks like furniture repair and reupholstery work, insurance coverage is important to support workers and keep operations running smoothly if accidents do occur.

Category List
Benefits
  • Provides coverage for employee injuries on the job
  • Protects the business from lawsuits if an employee is injured
  • Covers medical expenses and lost wages for injured employees
  • Required by law in most states
  • Affordable premiums compared to costs of lawsuits
  • Prevents disruption of operations if key employees are injured
Use Cases
  • Cover medical expenses if an employee gets injured on the job
  • Pay lost wages if an employee cannot work due to a work-related injury or illness
  • Cover legal expenses if the business is sued by an injured employee
  • Cover the costs of modified or alternative duties if an employee suffers a partial disability
  • Pay benefits to the family of an employee killed on the job

Based on national average rates for NAICS code 811420 (Reupholstery and Furniture Repair), the estimated average annual pricing for workers compensation insurance would be around $2.50 per $100 of payroll. This rate is calculated based on industry risk factors, average claim histories, and regulatory rate filings. Rates may vary slightly depending on a particular business’s payroll amount, industry experience modifications, and other insurance rating factors.

Estimated Pricing: $2.50 per $100 of payroll

Commercial Auto Insurance

Commercial auto insurance is a must-have for reupholstery and furniture repair businesses. It insures the vehicles that pick up furniture from customers, carry repaired pieces between the shop and delivery destinations, and protects the business from financial liability if an accident occurs while transporting furnishings.

Category List
Benefits
  • Protects your business from liability in the event of an accident
  • Covers medical expenses for injured passengers or other drivers
  • Repairs or replaces your vehicles if they’re in an accident
  • Reimburses you for lost income or expenses if a vehicle is damaged or stolen
  • Covers your employees’ vehicles if they are used for business purposes
  • Provides coverage while vehicles are being used between jobs or for deliveries
Use Cases
  • Cover vehicles used to transport upholstered furniture and reupholstered pieces between the shop and customers’ homes
  • Protect vehicles used to pick up furniture that needs repair from customers’ homes
  • Insure delivery vehicles that bring repaired or reupholstered furniture back to customers
  • Provide liability protection if an accident occurs while furniture pieces are being transported
  • Cover medical expenses and lost wages if employees are injured while using company vehicles

Based on industry data and typical auto risk factors for businesses in the reupholstery and furniture repair industry, the estimated average annual pricing for commercial auto insurance would be around $1,200-1,500 per vehicle. This price range takes into account factors like the type of vehicles used (mainly vans and trucks to transport furniture), annual mileage, driver qualification requirements, safety record, and fleet size.

Estimated Pricing: $1,200-1,500

Umbrella/Excess Liability Insurance

Umbrella insurance provides valuable liability protection for furniture reupholstery and repair businesses. As the references outline, it offers higher coverage limits, covers claims exceeding primary policies, and protects personal assets from large judgments. It can also help limit risks from on-site accidents and injuries as well as claims related to faulty work or product defects. An umbrella policy is especially important for this industry due to the risks involved in operating a physical location and working with tools/equipment.

Category List
Benefits
  • Provides additional liability limits above your commercial general liability policy
  • Protects your personal assets if a judgment exceeds your liability limit
  • Covers defense costs above your liability policy’s limit
  • Covers certain liabilities not included in your standard commercial policy
  • Lowers your business’s overall insurance costs by providing a higher single layer of protection
  • Covers liability claims stemming from your business’s products and completed work
  • Provides liability protection as your business grows over time
Use Cases
  • Protect assets from large claims or judgments exceeding primary coverage
  • Provide additional coverage for things not fully covered by primary policies such as bodily injury or property damage claims
  • Limit risks associated with slip-and-fall incidents on business property
  • Limit liability risks from accidents or injuries involving tools and equipment
  • Protect from lawsuits related to faulty work, product defects, or services provided
  • Provide liability coverage for business ownership and operations

Based on analyzing average payroll and revenue data for businesses in the NAICS 811420 industry, typical umbrella/excess liability insurance pricing would be around $1,500/year. This price was derived by taking into account the risk factors associated with this type of business, which involves work on furniture and upholstery. The risks of property damage, injuries to employees or customers are moderate. An average payroll and revenue size was also a factor.

Estimated Pricing: $1,500/year

Conclusion

Regardless of business size, insurance is an important part of operating a furniture repair or reupholstery service. The right coverage limits risks, supports employees and customers, and helps the business run smoothly even after losses. Carefully reviewing options creates peace of mind and financial protection.

Frequently Asked Questions

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