Auto Repair Garage Insurance
Fixing cars can be tough, and any mechanic shop owner knows that many things can go wrong on the job. It's essential to have the right auto repair shop insurance, protecting your business, your employees, and your customers' property in case of an accident or incident.
Finding the right policy, one with enough coverage to protect your business, can be confusing, and there's a lot of small print. An experienced insurance agent familiar with mechanic repair shop insurance can help you find the best policy for your needs.
What Kind of Insurance Does an Auto Repair Shop Need?
Every auto repair shop needs commercial property insurance, a general liability policy, and insurance to cover errors and omissions. If you have employees, you are required by law to carry workers' compensation insurance. If you store client information electronically, you'll also need cyber liability.
Because mechanic repair shops work directly with valuable customer assets, there are some unique risks to the business, and thus the need for special kinds of auto body garage insurance.
- Mechanic errors: Your technicians often have multipoint inspections for their services. If a safety problem is accidentally overlooked and leads to a car wreck, then you're responsible for the damages.
- Vehicle damage: Customers often leave their vehicles on your property all day or even overnight. If a car is damaged on your property, whether by an employee or from a break-in, then you may be sued for damages.
- Cyber breaches: If your shop is hacked and sensitive data is compromised, including credit card information, names, addresses, and emails of customers, and other information is stolen, you may have to pay for mandated notices, investigations, and any lawsuits or damages.
- Employee injury: Due to the nature of the business, this is by far the most common liability. Mechanics use a lot of dangerous tools and work with very heavy objects. In addition, most of the work is repetitive motion, leading to work-related injuries such as carpal tunnel syndrome.
All businesses will need general liability insurance, too, or a Business Owner's Policy (BOP), which covers liability, business interruption, and repairs or rebuilding in cases of a "covered peril" or a natural disaster such as a fire or flood.
What Does a Garage Insurance Policy Cover?
Garage Liability Insurance is a policy held by repair shops and car dealerships to cover bodily injury and property damage caused by business operations. It's a type of umbrella insurance policy, a specific policy purchased in addition to general business insurance to cover mechanics and auto-related incidents and accidents.
This specific coverage includes damages suffered from direct garage operations and the day-to-day operation of the repair side of the business. It's an additional layer of protection on top of the shop's general business liability policy. The coverage includes property damage and bodily injury that occurs directly as a result of garage operations.
Not all mechanic shop repair policies have the same coverage, both the specifics of what's covered and the amounts. It's best to consult with an insurance provider who understands the distinctions between different policies.
The garage liability insurance should add to, not replace, your general coverage. It should also cover customers on business grounds, in designated areas, and their property (usually vehicles). If you have parts delivery trucks or courtesy vans, you may also wish to include your company vehicles in this policy.
Garage liability plans don't cover the building, tools and equipment, or the business or personal property of the business owner. You'll need a separate policy, and the team at Thiess Agency can help you with that.
Which Businesses Can Use Garage Insurance?
Garage liability insurance is a specific umbrella policy for:
- Auto repair shops
- Car dealerships
- Tow truck drivers
- Service stations
This car repair business insurance covers damages specific to the operation of these businesses, both property and bodily injury.
Do You Need Mechanic Repair Shop Insurance?
If you aren't sure whether or not you need additional liability coverage, book a business consultation with Thiess Agency. We can help you better understand your current plan and conduct a thorough business analysis to determine how much additional coverage you require. Auto mechanic work can be dangerous, so it's always better to be prepared. Call us today to schedule your appointment!
