Do locksmiths need a licence in British Columbia?

Yes. Locksmithing is licensed security work in BC. A business needs a security business licence to operate a locksmith service, and individuals need a security worker licence. Workers can be licensed under supervision without training, or as full locksmiths through a SkilledTradesBC certificate, an approved apprenticeship, or two years of supervised full-time experience within five years.

How much liability insurance does a BC locksmith business need?

The BC government says a security business must have an active general liability policy of at least $1 million when it applies for or renews its licence. The policy must stay in force for the entire licence term, cover every branch office, and show the business name and coverage dates. Commercial clients may still ask for a higher limit.

Do locksmiths need a licence in Ontario?

There is no provincial security licence for locksmiths in Ontario. The Private Security and Investigative Services Act, 2005 states it does not apply to locksmiths. Locksmith is a prescribed trade under Ontario's skilled trades law, but it is not a compulsory trade, so certification is voluntary. Check with your municipality for any local business licensing rules.

Am I covered if I damage a customer's car while making a key?

Not under a standard general liability policy, which excludes property in your care, custody or control and the part of the property you are working on. Automotive locksmiths need a care, custody or control extension or similar cover. If you tow or store customer vehicles, tell your broker, because that brings a separate garage exposure.

What if a client is burgled after I change their locks?

The client or their insurer may claim your work or key handling allowed the break-in. Property damage from faulty hardware can fall under general liability. Allegations about key control or system design may need professional liability, and theft involving your employee points to crime cover. Signed work orders and a key register are your best evidence.

Does my insurance cover theft by my employee from a client?

General liability does not, because it excludes dishonest acts. You need commercial crime insurance that includes client's property or third-party cover, which responds when your employee steals from a customer's premises. Employee dishonesty cover alone usually protects only your own business property. Property managers sometimes ask for this cover in service contracts.

Are my tools covered if they are stolen from my van?

Only if your tools and equipment policy covers theft from vehicles. Many policies require the van to be locked, with signs of forced entry, and some require an alarm or a locked compartment or exclude overnight theft. Key machines, programmers and blanks should be scheduled at replacement value. Your auto policy usually does not cover tools inside the vehicle.

How is locksmith insurance priced?

Insurers rate locksmith liability on revenue or payroll, split by type of work, with automotive, safe and access control work rated differently from residential lockouts. Underwriters weigh years in business, certification, employees, vans, lockout verification practices, key control and claims. Equipment values, crime limits and care, custody or control extensions also move the premium.

Construction & Trades

Locksmith Insurance in Canada

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In short

A locksmith in Canada needs commercial general liability with completed operations, cover for customers' keys, vehicles and property in your care, tools and equipment cover for the van and key machines, and commercial auto. Add crime cover or a fidelity bond for employee dishonesty, and professional liability if you design access control or master key systems. In British Columbia, a licensed security business must carry at least $1 million general liability.

Last reviewed October 27, 2026

Minimum general liability for a BC security business licence, which covers locksmith businesses (gov.bc.ca): $1M; Minimum general liability for a BC security business licence, which covers locksmith businesses (gov.bc.ca)
Supervised full-time experience within five years that qualifies for a full BC locksmith licence, one of three routes: 2 years; Supervised full-time experience within five years that qualifies for a full BC locksmith licence, one of three routes
Locksmiths are excluded from Ontario's Private Security and Investigative Services Act, 2005 (s. 2 (7) (i)): Exempt; Locksmiths are excluded from Ontario's Private Security and Investigative Services Act, 2005 (s. 2 (7) (i))
Canadian insurers we compare for locksmith and security trade risks: 17; Canadian insurers we compare for locksmith and security trade risks

Locksmiths are sued over losses much larger than the job: a burglary after a rekey, a lockout that let the wrong person in, a master key that went missing. Commercial general liability handles injury and damage, but it excludes property in your care and dishonest acts. A locksmith program closes those gaps with care, custody or control cover for vehicles, safes and keys, and commercial crime cover for employee theft from you or your clients.

We build programs around your province and your work. British Columbia licenses locksmith businesses and workers, and requires at least $1 million general liability for a security business licence. Ontario excludes locksmiths from its private security licensing law. We add tools and equipment cover for the van, commercial auto and certificates for property managers. See the construction and contractors guide for the sector view.

What the package includes

Commercial general liability with completed operations for installed hardware
Care, custody or control cover for customers' vehicles, safes and keys
Tools and equipment cover for key machines, programmers and stock in the van
Commercial auto for service vans and mobile workshops
Employee dishonesty and client's property crime cover
Professional liability for master key and access control design
General liability at or above BC's $1 million security business licence minimum

Why locksmiths carry an unusual risk

A locksmith's work is small and physical: a cylinder, a strike plate, a safe dial. The consequences are not small. A lock you installed fails and the store is burgled. A lockout call lets the wrong person into an apartment. A master key system leaks a key that opens every unit in the building. The claim that follows is about a loss far larger than the job.

That puts locksmiths with the specialty service trades in our construction and contractors sector, but with an exposure closer to the security industry. The program needs commercial general liability for injury and damage, cover for keys and property in your hands, and protection against dishonesty, because clients trust you with access to everything they own. Get it right and you can sign commercial service contracts, pass property manager vetting and keep the van on the road after a theft.

The coverages a locksmith needs, and why

A typical locksmith program has six parts. The gaps tend to sit between the CGL and the crime cover.

Core coverages for a locksmith business
Coverage	What it answers	Points to check
Commercial general liability (CGL)	You damage a door or frame, or a customer trips over your tools	Completed operations for installed hardware; at least $1,000,000 for a BC security business licence
Care, custody or control	Damage to a customer's vehicle, safe or door you are working on, or loss of keys entrusted to you	Standard CGL excludes property in your care; ask for an extension or a bailee form
Tools and equipment	Theft of key-cutting machines, programmers, pick sets and blanks from the van	In-vehicle theft conditions and alarm or locked-compartment requirements; see tools and equipment
Commercial auto	The service van, often with a mobile workshop fitted	Declare business use and fitted equipment; see commercial auto
Crime and fidelity bond	An employee steals from your business, or from a client's premises they accessed through your work	Employee dishonesty, and third-party or client's property cover; see commercial crime
Professional liability (E&O)	A master key or access control design fails and the client loses money	Design and consulting services; see professional liability

Locksmiths who install access control, cameras or alarm panels should also look at cyber cover, since those systems hold credentials and client data.

The claims that actually happen

The scenarios below are hypothetical. They reflect the questions underwriters ask locksmiths, and show why one policy rarely answers all of them.

Hypothetical locksmith claims and the policy that responds
Hypothetical scenario	Allegation	Policy that responds
A store is burgled three weeks after you rekeyed it, with no forced entry	Your work, or a copy of the key, enabled the theft	CGL may respond to property damage; financial loss and key-control allegations may need E&O; employee involvement points to crime cover
You open an apartment for someone who is later shown not to live there	You let a stranger in without checking identity, and contents were stolen	Possibly CGL or E&O depending on wording; disputed on both
A car's ignition and steering column are damaged while you cut and program a key	Damage to the customer's vehicle in your care	Care, custody or control extension; excluded under a base CGL
Your employee copies a master key and later enters a tenant's unit	Theft by your employee from a client	Third-party crime or client's property cover; employee dishonesty is excluded under CGL
The van is broken into overnight and the key machine and blanks are stolen	Loss of your own equipment and stock	Tools and equipment; check in-vehicle theft conditions
A fire door you rehung fails to latch and a fire spreads	Faulty work contributed to the damage	CGL completed operations

Documented identity checks on every lockout, signed work orders and a key register are the best evidence you can hand an insurer.

Licensing and mandatory insurance by province

Locksmith regulation is uneven across Canada. Two provinces show how different it can be.

Locksmith licensing and insurance rules in selected provinces
Province	Rule	Insurance
British Columbia	Locksmith is listed work under the Security Services Act. A business needs a security business licence to operate a locksmith service, and individuals need a security worker licence. A locksmith can be licensed to work under supervision, which needs no training, or as a full locksmith. A full licence needs a SkilledTradesBC locksmith certificate, an approved apprenticeship, or two years' full-time experience within the past five years under a licensed locksmith.	The business must have an active general liability policy of at least $1 million when it applies or renews, kept in force for the whole licence term, covering all branch offices and showing the business name and coverage dates.
Ontario	The Private Security and Investigative Services Act, 2005, which licenses private investigators and security guards, states that it does not apply to locksmiths. Locksmith is a prescribed trade under the Building Opportunities in the Skilled Trades Act, 2021, with a defined scope of practice, but it is not on the list of compulsory trades.	No provincial insurance minimum. Contracts, property managers and municipal requirements drive your limits.
Other provinces we serve	Requirements vary.	Check with your province's security licensing office and your municipality before you start, and tell us where you work.

In Ontario, a certificate of qualification as a locksmith is voluntary, but it is a credential that commercial clients and insurers notice. Some municipalities license trades or businesses separately, so check locally.

Keys, vehicles and safes in your care

A standard CGL excludes damage to property in your care, custody or control, and to the particular part of property you are working on. For most trades that is a narrow gap. For a locksmith it is the job itself: the door you are drilling, the car you are programming, the safe you are opening.

Automotive work: damage to a customer's car while you cut a key, program a fob or extract a broken key is usually excluded unless you add a care, custody or control extension. If you tow or store vehicles, tell us, because that is a garage risk.
Safes and vaults: a drilled safe that cannot be repaired, or contents damaged during an opening, are high-value losses. Confirm the limit for property in your care fits the safes you work on.
Keys held for clients: property managers often leave key sets with you. A lost or stolen set can mean rekeying a whole building. Ask whether the policy covers the cost of rekeying for a client after a key loss, which some insurers offer as an extension.
Master key records: treat key codes and bitting charts as sensitive data. A breach of those records is a security failure for every client in the system.

Crime cover, fidelity bonds and employee checks

Clients hire a locksmith because they want fewer people to have access, not more. If an employee abuses that access, the CGL will not help, because it excludes dishonest acts. That is the job of crime insurance.

Employee dishonesty covers theft by your staff from your business: cash, stock, blanks and equipment.
Third-party or client's property cover extends that protection to theft by your employee from a customer's premises. Commercial clients sometimes call this a janitorial or service bond.
A licence or permit bond is a different product. It guarantees compliance with a licensing condition, and is arranged through surety where a municipality or client requires one.
Insurers ask about hiring checks. In BC, licensed workers have already been through the province's security licensing process, which includes identity verification and fingerprinting. Elsewhere, your own background checks are the evidence.

Our post on employee theft and commercial crime coverage explains how the insuring agreements differ.

Service contracts and certificates

Property managers, condo corporations, schools and general contractors buy locksmith services on contract. Their contracts usually ask for proof of insurance before you get keys or site access. Keep a current certificate of insurance ready.

Additional insured: the client asks to be added to your CGL for claims arising from your work. That is usually available on liability. It is not available on your crime cover, which is why some clients ask for a third-party crime extension instead.
Limits: commercial contracts often ask for a higher CGL limit than a small shop carries, and larger institutions may ask for more again. An umbrella can bridge the gap.
Hardware installation on construction projects brings the general contractor's requirements, which may follow CCDC forms. Our contractor guide covers those clauses.
Read the indemnity clause. If you agree to indemnify the client for any loss connected to access, you may be taking on liability no policy will match.

WSIB and your own injury

In Ontario, most businesses with employees must register with the WSIB within 10 calendar days of hiring their first worker. Whether the WSIB treats your business as construction, which brings mandatory coverage for owners as well, depends on how your work is classified. A shop that rekeys and services locks is not the same as a contractor installing door hardware on new buildings. Ask the WSIB to confirm your classification. If you do construction work for general contractors, expect them to ask for a WSIB clearance certificate before you start.

Your own injury is never a CGL claim. If you are not covered by workers' compensation, consider optional coverage or private disability insurance. A contingent employers' liability extension on the CGL is a low-cost backstop for staff claims that fall outside the board. Our post WSIB is not enough sets out the full stack.

What locksmith insurance costs: the rating logic

Locksmith liability is usually rated on revenue or payroll, split by type of work. Residential lockouts and rekeys, commercial service contracts, automotive work, safe and vault work, and access control installation each carry different rates. Underwriters adjust for years in business, certification, the number of vans and employees, identity verification practices on lockouts, key control and claims history.

Tools and equipment is priced on the schedule of values, with in-vehicle theft security making a real difference. Crime cover is priced on headcount and the limit. Automotive and safe work, care, custody or control extensions and higher liability limits all add premium. We put the options side by side so you can see what each extension costs before a contract demands it.

How we build a locksmith insurance program

1Confirm the rules: we check your province's licensing, including BC's security business and worker licences and the $1 million liability requirement.
2Map the work: residential, commercial, automotive, safes, master key systems and access control are each listed so nothing falls outside the wording.
3Close the custody gap: we add care, custody or control cover for vehicles, safes and keys, at limits that fit the work.
4Add crime protection: employee dishonesty and client's property cover, matched to what your service contracts ask for.
5Market it: we take the submission to the insurers on our panel of 17 whose appetite fits locksmith work and compare wordings, not just price.
6Keep it current: we issue certificates for contracts, review in-vehicle theft conditions and update the schedule as you add vans and equipment.

Good to know

Frequently asked questions

What insurance does a locksmith need?: Most locksmiths need commercial general liability with completed operations, cover for property in their care such as customers' cars and safes, tools and equipment cover for the van and key machines, and commercial auto. Crime cover protects against employee theft from you or your clients. Locksmiths who design master key or access control systems should add professional liability.
Do locksmiths need a licence in British Columbia?: Yes. Locksmithing is licensed security work in BC. A business needs a security business licence to operate a locksmith service, and individuals need a security worker licence. Workers can be licensed under supervision without training, or as full locksmiths through a SkilledTradesBC certificate, an approved apprenticeship, or two years of supervised full-time experience within five years.
How much liability insurance does a BC locksmith business need?: The BC government says a security business must have an active general liability policy of at least $1 million when it applies for or renews its licence. The policy must stay in force for the entire licence term, cover every branch office, and show the business name and coverage dates. Commercial clients may still ask for a higher limit.
Do locksmiths need a licence in Ontario?: There is no provincial security licence for locksmiths in Ontario. The Private Security and Investigative Services Act, 2005 states it does not apply to locksmiths. Locksmith is a prescribed trade under Ontario's skilled trades law, but it is not a compulsory trade, so certification is voluntary. Check with your municipality for any local business licensing rules.
Am I covered if I damage a customer's car while making a key?: Not under a standard general liability policy, which excludes property in your care, custody or control and the part of the property you are working on. Automotive locksmiths need a care, custody or control extension or similar cover. If you tow or store customer vehicles, tell your broker, because that brings a separate garage exposure.
What if a client is burgled after I change their locks?: The client or their insurer may claim your work or key handling allowed the break-in. Property damage from faulty hardware can fall under general liability. Allegations about key control or system design may need professional liability, and theft involving your employee points to crime cover. Signed work orders and a key register are your best evidence.
Does my insurance cover theft by my employee from a client?: General liability does not, because it excludes dishonest acts. You need commercial crime insurance that includes client's property or third-party cover, which responds when your employee steals from a customer's premises. Employee dishonesty cover alone usually protects only your own business property. Property managers sometimes ask for this cover in service contracts.
Are my tools covered if they are stolen from my van?: Only if your tools and equipment policy covers theft from vehicles. Many policies require the van to be locked, with signs of forced entry, and some require an alarm or a locked compartment or exclude overnight theft. Key machines, programmers and blanks should be scheduled at replacement value. Your auto policy usually does not cover tools inside the vehicle.
How is locksmith insurance priced?: Insurers rate locksmith liability on revenue or payroll, split by type of work, with automotive, safe and access control work rated differently from residential lockouts. Underwriters weigh years in business, certification, employees, vans, lockout verification practices, key control and claims. Equipment values, crime limits and care, custody or control extensions also move the premium.

Sources

Security business licence (locksmith listed as licensed security work). Government of British Columbia, Accessed October 27, 2026.
Application and licence management process (general liability insurance of at least $1 million). Government of British Columbia, May 26, 2025.
Security worker licence and training requirements (locksmith under supervision and full licence). Government of British Columbia, Accessed October 27, 2026.
Private Security and Investigative Services Act, 2005, S.O. 2005, c. 34, s. 2 (7) (i). Government of Ontario, e-Laws (official Word consolidation), Consolidation from July 1, 2019, accessed October 27, 2026.
O. Reg. 876/21: Prescribed Trades and Related Matters, ss. 1 and 2, and O. Reg. 875/21: Scopes of Practice, s. 84. Government of Ontario, e-Laws (official Word consolidation), Accessed October 27, 2026.
Do you need to register with us?. Workplace Safety and Insurance Board (WSIB), Accessed October 26, 2026.
Operational Policy Manual 14-02-19, Clearance Certificate in Construction. Workplace Safety and Insurance Board (WSIB), January 2, 2020.

This page is general information, not insurance or legal advice. Coverage depends on your policy wording and the insurer. Speak with a licensed broker about your situation.

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