Auto repair shops range in the services they provide from vehicle mechanical and electric repair to auto body repair services, such as dent and scratch removal. Most auto repair shops employ auto mechanics and electricians to repair vehicles that need basic maintenance or heavy-duty repair work. They may also specialize in certain types of vehicles or repair work like transmissions, tires, or brakes. If you own and operate an auto repair shop, you most likely know that you’re open to more than a fair share of risks. These involve liability risks from potential damage or theft of customer vehicles along with employee risks of working with the heavy and often dangerous equipment and tools. Protect these and other risks by obtaining auto repair shops insurance.
Types of Auto Repair Shop Insurance
The following are the main types of auto repair shop insurance policies that will be the most beneficial to your type of business.
General liability insurance includes three main coverage types for auto repair shops: premises liability, completed operations, and product liability. Each of these have a different range of coverages, including liabilities that arise after the work has been completed or accidents occurring on the premises of the shop. For example, damage or bodily injury that occurs on the premises of the auto repair shop will be covered under premises liability with general liability insurance. Moreover, the floors of auto repair shops can be slippery with oil and other liquids, raising the risk of a customer slipping and hurting themselves. This is where general liability insurance becomes useful.
Most of your repair jobs won’t be finished in one day, which means you’ll be storing the customer’s vehicles in your repair shop garage. If while a customer’s vehicle is in your possession, her car is stolen or is vandalized, you could be liable for the damages or loss without proper coverage. However, with garage keeper’s liability insurance, you will have financial protection against such costs.
Any damage done to your shop or offices can result in loss of business income, not to mention loss of tools or equipment vital to your auto repair shop business. The repairs to the property or replacement tools and equipment costs that were destroyed can cost a large sum of money. Property insurance covers damage and loss from a variety of unexpected events, including natural disasters, extreme weather conditions, fire, theft, and vandalism.
It sad to say, but a number of crimes can occur in your auto repair shop, ranging from theft and vandalism to dishonest employee practices like embezzling money. Since you’re responsible for customer’s vehicles while they are in your shop, it is especially important to obtain crime insurance. For instance, if a customer’s Ford Mustang was broken into and his expensive car stereo was stolen, the damages would be covered according to your crime insurance policy.
Worker’s compensation will provide coverage for all of your auto repair shop employees in the event of a work-related illness or injury. In your auto repair shop, employees are using equipment and tools that could cause them harm. However, if you didn’t have worker’s comp, you would be responsible for their injuries. By having worker’ comp for each employee, they get the medical care and income protection they need, and you won’t be liable for these costs. It’s also mandated by most states.
It goes without saying that the equipment you use in your auto repair shop — like jacks, automobile lifts — is vital to your business. Without it, it would be impossible to make any repairs or conduct business. If equipment or tools break down, they would need to be repaired or replaced quickly, in order to satisfy your business obligations. However, this can cost you a lot of money especially if you need to pay extra for replacing the tools or equipment right away. As part of an insurance for auto repair shops portfolio, equipment breakdown insurance helps cover these types of repairs or replacements.
If you or your employees use a vehicle for business purposes, be sure it is covered by business auto insurance. Business auto is a special type of automobile insurance to cover any vehicle used for business operations. If you provide mobile auto repair services or pick up parts from a local supplier, covered business vehicle damages incurred as a result of those trips will be covered by business auto insurance. Not only does it offer coverage for bodily injury or property damage as a result of an accident, but you can also get coverage for theft or vandalism.
Business interruption insurance is important for your auto repair shop because any property damage or loss can result in the loss of business. Any time you’re unable to perform normal business operations, whether from broken equipment or damage to your shop, you’re losing out on business. Business interruption insurance protects your finances if this was to occur.
Auto repair shops insurance is a crucial part of running a successful business. You may not be able to prevent these occurrences, but by having proper insurance, you can avoid financial turmoil as a result.