What insurance does a locksmith need?
Not all professions face the same risks. Below is a breakdown of every coverage type relevant to locksmiths — what each one covers, whether it's required, and what you should expect to pay in 2026.
General LiabilityRequired
$50–$120/mo
Core protection for locksmiths. Covers property damage during lockout services and injuries at client locations.
Surety BondRequired
$15–$35/mo
Required for licensing in many states. Protects clients if you cause property damage or act dishonestly.
Commercial AutoRequired
$80–$180/mo
Covers your service vehicle and tools in transit.
Tools & Equipment
$15–$30/mo
Covers your lockpicks, key cutters, and diagnostic equipment.
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Top risks for locksmiths
- Property damage during lockout service
- Accusation of enabling break-in
- Vehicle damage during auto lockout
- Stolen tools or equipment
- Licensing bond requirement
How much does insurance cost?
Most locksmiths pay $80–$200/month for a complete coverage package. Your exact cost depends on your state, annual revenue, whether you have employees, your claims history, and the coverage limits you choose.
Frequently asked questions
Do locksmiths need to be licensed and bonded?
Requirements vary by state. Many states require locksmiths to be licensed and bonded. The bond protects clients if you cause damage or act dishonestly — it's separate from insurance.
What if I damage a door frame during a lockout?
Property damage during lockout services is covered by general liability insurance. Door frame, lock cylinder, and door damage are among the most common locksmith claims.
Am I liable if someone uses my services fraudulently?
Professional liability insurance covers your defense if a client claims you enabled unauthorized access to their property. Proper verification procedures help prevent these claims.
How to get the best rate
The fastest way to find the lowest rate is to compare multiple carriers side by side. Most locksmiths can get quotes from 3–5 insurers in under 10 minutes and receive their certificate of insurance the same day.