An auto parts store sells virtually anything someone would need to repair their car and do routine maintenance. This includes all different types of parts, hoses, mats, car batteries, belts, miscellaneous parts and accessories. For your auto parts store, the most common risks are that of customer injury, damage from products you sell and general business risks such as damage to your property. Cover these risks with auto parts store insurance.
Types of Auto Store Insurance
There are many different types of insurance policies for auto parts stores, ranging from liability insurance to workers’ comp. Choose from the following vital policies for your store:
One of the most important insurance policies for auto parts shops is a general liability policy. This will offer coverage for injuries customers might have in your store along with product liability and completed operations. Take for instance this situation: If a can of grease spills on the floor and a customer slips and hurts herself, you’re responsible for the medical costs. With general liability insurance, the medical and legal costs are covered under the terms of your policy.
Product liability coverage is often included in general liability insurance. When you have a product liability policy as part of your auto parts store insurance portfolio, any legal costs associated with the products you sell are covered. For example, an auto part that malfunctions when the customer uses it may damage their vehicle or cause bodily injury. These types of claims are covered by product liability.
If you use a personal vehicle for business errands like picking up parts, dropping them off or going to the bank, you should be covered by a commercial auto policy. Business auto insurance will offer coverage for property damage and bodily injury if you get into a collision and typically covers the same for other drivers. You can also add additional options to the policy like theft and vandalism coverage.
Another important coverage for your auto parts store is business property insurance. This offers protection from unexpected events that could destroy the property and items inside your store. Catastrophes like fire, flood, earthquakes or other natural disasters could occur without warning. You are also at a higher risk for fire due to merchandise like aerosol cans and oil. Business property insurance typically covers repairs to the building and repairing items that were destroyed and can’t be repaired.
You may also sell auto parts online, in which you should protect your business from Internet-related crimes. These crimes are also known as cyber crimes and include forging payment information, sabotaging your site and stealing financial or customer information and other fraudulent activity. To protect your business from cyber crimes, get a cyber liability insurance policy.
Workers’ compensation is a type of insurance to protect your employees should they suffer a work-related injury. In an auto parts store, this could be from slipping on a puddle of grease, cutting a hand using box cutters or repetitive motion and back injuries. Employees should be given a safe working environment, but accidents do happen. With workers’ comp, medical costs, recovery and lost income is covered by the policy and it prevents employees from suing your company for damages.
Theft, shoplifting and vandalism are all significant risks with an auto parts business. Crimes could be committed by customers, people passing by or your employees. Protect your business from crimes with a crime insurance policy. That way if a forged check is used for payment, money is stolen from the register or embezzled by employees, or if parts are stolen, you can recover the loss with the insurance policy.
Protect the business you have worked hard to start by getting auto parts store insurance. These policies all cover a different range of risks, making each of them equally important. Consider what your probable risks are when deciding which policies to purchase for your auto parts store.