The policies a locksmith business carries
Locksmiths are trusted with access to homes and businesses. Professional liability shows up on Insureon's list because a mistake can cost a client their security, not just a door.
| Policy | Average a month |
|---|---|
| General liability | $46 |
| Tools and equipment | $48 |
| Commercial auto | $250 |
| Workers' compensation | $88 |
| Business owner's policy | $73 |
| Professional liability | $89 |
Averages are what Insureon's customers who are locksmiths pay, from Insureon's cost page; most of its customers have fewer than five employees. Across all its small business customers, general liability runs $265 to $3,030 a year.
Claims locksmiths plan for
- A lock you installed fails and a home is burglarized
- A door is damaged during a lockout
- A key is made for someone who did not own the property
- A car's electronics are damaged during a lockout
Ask your agent, in these words:
- Would my policy pay if a lock you installed fails and a home is burglarized?
- Would my policy pay if a door is damaged during a lockout?
- Would my policy pay if a key is made for someone who did not own the property?
- Would my policy pay if a car's electronics are damaged during a lockout?
Name the work you sell
A policy covers the work you describe on the application. From the locksmith services list, name each of these and ask whether any is excluded: house lockout; car lockout; business lockout; rekey per cylinder; lock change; deadbolt install; smart lock install; key duplication; car key and fob programming; master key system.
Key machines and programmers are worth listing. On the tools list, the items to list on the policy are automotive key programmer; code-cutting key machine; safe tools; commercial hardware tools, and from the starter kit, lock pick set and tension tools; rekey kit with pins for the common brands; key blanks for common keyways; manual or electric key machine; car opening tools: wedges and long reach tools.
State rules in the license
These are the insurance and bond lines in each state's locksmith license rules, from our locksmith license guide, which reads each state board's own pages. 1 of the 14 states we cover set an insurance or bond rule in the license itself. Click a state for the full license steps.
| State | Insurance in the license rules | Bond |
|---|---|---|
| Louisiana | General liability of at least $500,000 and workers' compensation, unless the owners are the only employees. | Not set in the license rules we checked |
States not listed either leave insurance to cities and counties or set no rule in the license. Your city, your customers and your contracts can still ask for more.
Workers' comp and bonds
The SBA says every business with employees must carry workers' compensation, unemployment and disability insurance. Insureon's average for locksmiths is $88 a month, priced per $100 of payroll. A bond protects the state or the customer, not you; Insureon puts its yearly cost at a share of the bond amount:
| Bond amount | Estimated yearly cost |
|---|---|
| $5,000 | $25 to $500 |
| $10,000 | $50 to $1,000 |
| $50,000 | $250 to $5,000 |
Certificates of insurance
Businesses and property managers ask for a certificate and, where the state licenses locksmiths, your license number. Keep a PDF on your phone so you can send it the day they ask.
Sources
- Insureon: Insurance cost for locksmiths, checked October 9, 2026
- Insureon: General liability insurance cost, checked October 9, 2026
- Insureon: Workers' compensation insurance cost, checked October 9, 2026
- Insureon: Surety bond cost, checked October 9, 2026
- SBA: Get business insurance, checked October 9, 2026
- Koira: Locksmith license requirements by state (each row lists its board sources), checked October 9, 2026
Last checked October 9, 2026. This page is general information, not legal or tax advice. Rules change and differ by state and city, so confirm with the agency named before you act.