June 25, 2025
Dorsal Insurance

Locksmith Insurance In Florida

Locksmiths in Florida, like many small business owners, need to carry various types of insurance to protect themselves from financial risks. While the locksmith trade is largely unregulated in most parts of Florida, Hillsborough County and Miami-Dade County have specific licensing requirements that include maintaining commercial general liability insurance.   

Here’s a breakdown of common and often essential insurance types for locksmiths in Florida:

1. Commercial General Liability (CGL) Insurance:

  • What it covers: This is fundamental coverage. It protects your business from claims of bodily injury or property damage to third parties (clients, customers, or the public) that occur as a result of your business operations. This could include a client tripping over your tools at their home, or if you accidentally damage a client’s door while installing a lock.   
  • Florida Requirements: In regulated counties like Hillsborough and Miami-Dade, there’s a minimum requirement for CGL insurance. For instance, Hillsborough County requires at least $500,000 per incident for loss or damages due to negligence.   
  • Cost: Locksmiths in Florida might pay an average of $42 per month for general liability insurance, though this can vary based on factors like coverage limits, business size, and foot traffic.   

2. Workers’ Compensation Insurance:

  • What it covers: If you have employees, this insurance is typically legally required in Florida for businesses with four or more employees. It covers medical expenses, lost wages, and disability benefits for employees who get injured or ill on the job. It also protects your business from lawsuits related to workplace injuries.   
  • Common Locksmith Injuries: Locksmiths face risks like cuts, eye injuries from debris, strains from heavy lifting, slips, and even lead exposure.
  • Cost: In Florida, workers’ compensation for locksmiths averages around $77 per employee per month, based on a rate of $1.70 per $100 of payroll.  

3. Commercial Auto Insurance:

  • What it covers: Essential if you use a vehicle for your business (transporting tools, materials, or traveling to client sites). It covers collision repair costs, medical expenses, and liability for injuries or damages you cause to others in an accident.   

    Why it’s important: Locksmiths frequently travel to various locations, increasing their exposure to auto accidents.

4. Contractor’s Tools and Equipment Insurance (Inland Marine Insurance):

  • What it covers: Protects your valuable tools and equipment from damage, loss, or theft, whether they are in transit, at a job site, or stored.
  • Why it’s important: Locksmiths rely on specialized tools, and replacing them can be costly.   

5. Professional Liability Insurance (Errors & Omissions – E&O):

  • What it covers: This insurance protects your business from claims of negligence, errors, or omissions in your professional services. For example, if a client claims your work (e.g., a security system installation) was faulty and led to a loss, E&O would cover legal fees and settlements.
  • Why it’s important: Locksmiths operate in a position of trust regarding security, and errors can have significant consequences.

6. Business Owner’s Policy (BOP):

  • What it is: A BOP is a cost-effective option for small, low-risk businesses as it bundles general liability insurance and commercial property insurance into one policy, often at a discounted rate.   
  • What it covers: Client injuries, property damage, and stolen or damaged business property.
  • Cost: Locksmiths in Florida might pay around $48 per month for a BOP.   

Other Potential Coverages:

  • Commercial Umbrella Insurance: Provides additional liability coverage beyond the limits of your standard policies.   
  • Cyber Liability Insurance: Important if your business handles customer data digitally.
  • Surety Bonds: May be required for specific projects or contracts to guarantee completion as per specifications.   
  • Employee Dishonesty: Protects against theft, fraud, or other dishonest acts by employees.   

Factors Affecting Insurance Costs:

  • Type of services offered: Different locksmith services carry different risks.
  • Value of tools and equipment: Higher value means higher coverage costs.
  • Business income (annual revenue and payroll): Larger businesses generally pay more.   
  • Number of employees: Directly impacts workers’ compensation costs.
  • Claims history: A history of claims can increase premiums.   
  • Location: Insurance rates can vary by county or city.
  • Coverage limits and deductibles: Higher limits and lower deductibles generally mean higher premiums.

How to Get Locksmith Insurance in Florida: It’s recommended to:

  • Assess your specific risks: Consider the types of services you offer, your employee count, and the value of your assets.
  • Compare quotes: Get quotes from multiple insurance providers to find the best rates and coverage options.
  • Work with an independent agent: They can provide valuable insights and help you navigate different policies.

 

Call Dorsal Insurance today for a quote (786) 601-2485

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