Insurance For Auto Body Shops

Insurance Policies to Consider For Auto Body Shop Insurance

General Liability Insurance 

General liability insurance is crucial kind of commercial insurance for an auto body and repair firm. This auto shop insurance covers your business in the event that something bad happens to one of your customers or their belongings. For instance, general liability insurance will pay the costs if a customer is hurt at your store. In another instance, if a customer's car is destroyed while it is being repaired at your shop, general liability will cover the costs.

Advertising and product responsibility are also included under general liability. If your auto shop prints an ad that injures a consumer, general liability covers the costs of the damages. This applies to certain products as well. For example, general liability insurance covers your customers' losses if you sell a certain sort of engine oil enhancer that is later discovered to be harmful to their engines.

Property Insurance 

Property insurance covers the structure of your store. The most crucial issue to consider here is whether you'll pay the genuine worth of your business and its contents or the depreciated amount if something goes wrong. 
 

Replacement cost will pay what it would cost to replace your belongings today (provided the payout cost has been adjusted for inflation). On the other hand, the depreciated worth of your building and items will be covered by the actual cash value. 

It ultimately boils down to determining how much you can afford to lose in terms of premiums, deductibles, and payout.

Business Owner's Policy (BOP) 

A business owner's policy comprises general liability and property coverage for your business property and assets. 

On the property side, a BOP will protect you against financial damages if your physical business facilities or the goods inside are damaged. For example, if your auto body shop burns down, your company owner's policy will cover the price of reconstructing it. It would also cover the expense of repairing damaged or destroyed commercial equipment such as power tools, compressors, vehicle lifts, and other specialist equipment. 

A business owner's insurance will also cover the loss of intangible business assets. A BOP will cover the financial loss if your car repair service takes cash and cheques for payment and that amount is lost in a fire. A BOP will cover the expense of repair, reconstruction, or replacement if you store customer warranties in paper or digital form and they are damaged. 

Commercial Auto Insurance 

An auto body shop must have commercial auto insurance. Auto accidents involving work or personal vehicles, as well as rented or borrowed vehicles, may be covered. If you have to drive a customer's car to test the brakes, for example, commercial auto insurance might cover your losses if you get into an accident. Losses and damages to the vehicles are covered by business auto insurance, as well as medical coverage for anyone harmed. 
 

Workers' Compensation Insurance 

Accidents can occur in any profession, but they're more common in the vehicle repair industry. Mishandling of a car jack or wrench might result in costly injury. Workers' compensation insurance is required by law for all of your employees. If an employee is injured on the job, workers' compensation pays for their medical bills and related expenses. Workers' compensation insurance is required if you have employees; this form of insurance is needed by law for all enterprises with a physical presence where employees may be harmed while on the job.

Garage Liability Insurance 

Every vehicle repair shop, regardless of specialty, requires general liability, errors and omissions, and commercial property insurance. 

A garage liability insurance policy, like standard business liability insurance, protects a car repair company from litigation and medical costs that may emerge as a result of someone being injured on their property. 

Auto repair shops, unlike conventional office buildings or retail outlets, have a higher risk of serious injuries to both employees and customers. As a result, garage liability insurance can assist in providing the required protection for your business.

Difference Between Garage Liability and Garage Keepers Insurance 

In simple terms, the distinction between garage liability and garage keepers' insurance is the discrepancy between liability and physical damage insurance.

The former covers the insured's liability for autos and operations, while the latter covers customer vehicle damage. 

Insurers who provide garage insurance can frequently add coverage from general liability, such as personal and advertising injury, to the policy. This can be a practical approach for automotive business owners to have all of their basic risks covered under one policy.

For you and your employees, your garage is like a second home, but customers are less familiar with the area. A single blunder might put them in grave danger. Let's imagine a customer enters the garage to inquire about their vehicle and gets too close to a piece of machinery. Your auto repair shop could be held accountable for medical expenditures, personal harm, and property damage in the blink of an eye.
 

When you own an auto repair shop, every day is different. There is no telling what obstacles you'll face between opening and closing up shop for the day, from minor brake replacements to entirely revamping critical car systems following an accident. One thing is certain: auto repair shop business insurance is a must-have in an industry with so many moving pieces.