Appliance Repair Insurance; the struggle is real.

Having been working with appliance repair insurance for years, I have learned the high risk of claims appliance repair owners face in their business. There are a few hidden dangers that lurk within this industry.

The biggest risk is due to two ingredients. Water and wood don't do well together. Most of today's homes are built with wood or manufactured wood products in the kitchen area. Appliances such as dishwashers and even refrigerators use water so with these two things working in close proximity to wood floors, we are seeing a huge increase in large water damages among the appliance repair industry. We see companies that can barely get approved for even large premium liability policies.

The most important tip I can give my appliance repair owners is for them to remind their technicians regularly to test and retest every repair involving them removing water lines or hoses. Most of the claims come from a technician being in a hurry and forgetting to reconnect properly a hose or line then not testing to find their mistake before leaving telling the customer they are good to use their appliance.

Another huge risk in the appliance repair business is with dryer repairs. One of our customers was hit with a $96,000 claim due to a faulty repair that resulted in smoke damage to a home. Not totally clear who was truly at fault, but it was determined that an important part was left off by the last company to work on the dryer just 2 weeks before the claim occurred so my customer being the last one to work on the dryer was charged with the claim.

Fleming Insurance Group specializes in Appliance Repair insurance so please contact us for any of your insurance needs.