Locksmiths install, repair, cut open, or replace locks and locking systems on buildings and automobiles. Other services include key duplications, retail sales of hardware and locks, and in some cases, alarm and security systems. Locksmiths also provide emergency unlocking services.
Depends on the operation. In those cases where the operation is limited to on-call lock repair and replacement, property may consist only of an office and storage of equipment and vehicles. In the case of retail operations and security systems sales, the additional exposures of a storefront exist and the storage of items to sell and install.
Locksmiths can have a high exposure to theft of their equipment. Target theft items include specialty equipment to open doors, and lock-opening tools and materials. If retail operations are involved, premises hazards increase accordingly.
Inland Marine Exposures
Involve the transport of the contractors equipment that includes equipment that can be used to break in to buildings and cars and so is attractive to criminals. In addition, the locksmith who installs may transport customers goods in his vehicles, which is a goods in transit exposure. There may also be some installation floater exposure on large commercial operations.
Presents hazards unique to locksmiths as related to customers property entrusted to the locksmith. Employees may steal property of the locksmith that enables them to steal from others (e.g., special prying tools to open locks) or they may steal or impair a customers property in the locksmiths care (e.g., master keys to the customers premises). This exposure quickly grows from a property loss of the locksmith to a liability loss. Employees who cannot be bonded and licensed are in fact a significant hazard to a locksmith operation. An absence of controls such as background checks and inventory control represents a severe morale hazard.
Premises liability exposures
Are slight but the completed operations exposure can be very high, especially if the locksmith is involved in any monitoring of alarms. Most of the locksmith’s operation is done at the client’s premises so premises liability includes risk of potential injury or damage to customer’s property during repair or installation. Locksmiths are held to a high degree of care because of the trust their customers necessarily place in their work. Any time security issues are involved and a theft or crime occurs, the exposure of the operation that promises safe, secure premises from the installation and use of a product can result in significant products losses.
An additional exposure is the potential for employees of the locksmith operation to commit acts of theft or damage to the customer’s premises, as noted above under employee dishonesty.
Is moderate and consists of travel to and from job sites. Emergency services result in driving to unfamiliar places at unusual hours. A significant hazard arises if the insured lacks standard procedures that apply to “on call” personnel regarding sleep, alcohol use, and radius of operation.
Losses come from the cutting, welding, drilling, and other necessary processes during the repair and installation operation. Persons on call to handle emergencies may also face danger of personal attack, because of their access to customers premises and their hours of operation.
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