Automobile Repair Shop Business Insurance

Car dealerships, like other industries, have run into trouble in the recent economic times.  Like other professions, auto mechanics may find themselves laid off or working less than full time. Some mechanics have opted to open their own repair shops as a result.  Like any business, auto repair businesses and the mechanics that own them need to get the proper insurance in place.

For any type of business, there are several basic needs, and some specialty insurance coverage to consider.  General liability is the first piece of putting together an auto repair business insurance package.  No matter how diligent you are, everyday you are at risk of being sued.  Court costs and legal fees, damage awards, and time spent can financially ruin a business.  A general liability insurance policy will cover costs and protect the assets of the business.  Garage keepers insurance also needs to be discussed where you are keeping customers vehicles for a period of time.  Product liability insurance is another option that needs serious consideration.  If you are towing vehicles, tow truck insurance will cover liability and damage claims in transit to the repair shop as well as bodily injury and property damage.

Property insurance is the next insurance a business including auto repair shops need to consider.  Property insurance will cover the building structure and furnishings as well as some equipment.  Additional options that should be discussed include employee’s tools, debris removal and pollutant clean up, computer equipment, and equipment breakdown or boiler and machinery insurance.

A business owner’s policy can provide a good insurance package by combining the coverage discussed.  In addition, many of the options can be added as part of the business owner’s policy instead of purchasing separate policies for each.

If the auto repair business has employees, then as a rule, workers compensation is required.  This is always purchased as a separate insurance.  While every state varies in specific standards, we recommend having workers compensation in place from the first employee hire.  In addition, it may make sense to explore crime insurance and employment practices insurance as well.

Don’t assume your auto repair business is adequately insured.  Talk to a licensed insurance professional who understands the needs of your business.  Together you can design a plan to meet both risk and the budget.

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Insurance for Garage and Auto Repair

Business insurance basics for a garage and repair shop.

Like other industries, car dealers have run into trouble in the recent economic times. Many mechanics have opted to open their own repair shops as a result. Like any business, auto repair businesses and the mechanics that own them need to get the proper insurance in place. Whether a home garage, or a leased or owned location, if you’re working on someone’s car, you must protect yourself with insurance coverage.

Every type of business has several basic needs, and then some specialty insurance coverage to consider for the mechanic. Let’s review these insurance coverage options.

The first piece of insurance a business needs to consider is property insurance, including auto repair shops. Property insurance will cover the building structure and furnishings as well as some equipment. Additional options that should be discussed include employee’s tools, debris removal and pollutant clean up, computer equipment, and equipment breakdown or boiler and machinery insurance.

General liability is the second piece of putting together an auto repair business insurance package. No matter how diligent you are, everyday you are at risk of being sued. Court costs and legal fees, damage awards, and time spent can financially ruin a business.

A general liability insurance policy will cover costs and protect the assets of the business. Garage keepers insurance also needs to be discussed where you are keeping customers vehicles for a period of time. Product liability insurance is another option that needs serious consideration. If you are towing vehicles, tow truck insurance will cover liability and damage claims in transit to the repair shop as well as bodily injury and property damage.

If the auto repair business has employees, then as a rule, workers compensation is required. While every state varies in specific standards, we recommend having workers compensation in place from the first employee hire. In addition, it may make sense to explore crime insurance and employment practices insurance as well.

Never assume your auto repair business is adequately insured. Talk to a licensed insurance professional who understands the needs of your business. Together you can design a plan to meet both risk and the budget.

Get a Quote

Auto Repair Shop Insurance

If you own an auto repair shop you might benefit from a Business Owner’s Policy, or BOP; ask your agent about designing a package around your specific needs for your auto repair shop insurance.  As an auto repair business owner you will need coverage for your tools, equipment and employees; equipment such as lifts and compressors should have protection for replacement costs so that if disaster happens you can get your equipment replaced and get your business back on track again.  (Business Interruption insurance is a good endorsement in case an event does derail your operations to the point that your income is affected.) If you offer towing you will need Commercial Auto for your tow trucks.  Your Business Owner’s Policy will include General Liability coverage, for damages and injuries to third parties, and Commercial Property insurance.  Garagekeepers coverage offers protection in case a customer’s car is lost or damaged while under your care and control.

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Please contact CommercialInsurance.NET at 1-877-907-5267 if you would like a quick, free estimate for auto repair shop insurance or have questions on how to protect your business.