Auto Repair Shop Insurance – What You Need To Know
Auto repair shops of all types have unique risks and needs and in this video and post, I’m going to break it down to give you a better understanding of what you need and why.
So, let’s start with the types of auto repair shops that need insurance:
- Auto repair shops
- Tire dealers and installers
- General mechanics
- Muffler shops
- Transmission repair shops
- Auto body and collision repair shops
- Auto sound installation shops
- Auto detailing businesses
- Car customization shops
There are several types of insurance policies and coverage parts that need to be considered for every type of shop I just mentioned.
But the common thread or risk that needs to be considered when it comes to auto repair shop insurance is that the risk of catastrophic loss. Meaning that an auto accident that results from your work after a car leaves your shop, or during a test drive could result in serious injuries or death and lead to very serious lawsuits.
So, purchasing the right protection and having reasonably high limits of liability protection is important.
Today, many insurers will combine several of the required coverages you need under a single business owner or BOP policy.
This will include:
- General Liability – to protect your auto repair business from claims that arise from bodily injury or property damage.
- Property insurance – to cover your building if you own it, your equipment, tools, and office contents.
- Business Interruption or business income insurance – to protect your revenue flow if you’re forced out of your shop due to a covered loss such as a fire.
- Garage Keepers – which protects your customers’ vehicles left in your care should they be damaged by vandals, or during a test drive, or if destroyed in a fire or other disaster.
Now, outside of the business owners policy, there are a few other coverages or policies to consider
- Workers compensation – to protect your employees for injuries and illness they incur on the job and to satisfy state mandates to carry this insurance.
- Umbrella or excess liability insurance – to provide an extra layer of liability protection over and above your other liability policy forms.
In some cases, if you own a tow truck or have a dealer or transporter plates there are some specialized coverages that need to be addressed as well which we can help you with.
How do you get an insurance quote from your auto repair shop?
It all starts with a conversation. You may be facing issues or problems that need to be addressed and you need someone to vent to about them, or maybe a startup and don’t know where to start, or maybe you may have a big premium increase that’s motivating you to shop around.
Let’s have that conversation and see if we can help, which we likely can. I’ve been in the business for 40 years and there aren’t many problems or issues I haven’t seen or fixed!
From there I’ll ask you for a copy of your current policies as a baseline and then get some additional information from you so we can go to several of our insurers for competitive quotes. Once the quotes are back, we’ll review them to find the best, and make that recommendation to you.
I promise to make the whole process as painless as possible with no pressure or sales gimmicks.
Want to learn more? Give me a call or drop me an email and let’s chat – in fact, click the button below to get started! Let’s talk and see if we’re a good fit for your business.