As an auto repair shop owner, you know all too well the importance of keeping your mechanics and customers safe. From slip-and-fall accidents to property damage and lawsuits, the risks involved in running an auto repair shop are many. That’s why having proper business insurance is crucial. In this article, we’ll take a closer look at the types of insurance you need to keep your auto repair shop protected.
Business Owners Policy (BOP)
Property: This coverage protects your auto repair shop’s physical assets, such as your building, equipment, tools, and inventory. It covers damage caused by events like fire, theft, vandalism, and weather-related damage.
Liability: Liability coverage protects your auto repair shop if you’re found responsible for bodily injury or property damage. For example, if a customer slips and falls on your shop’s floor, liability coverage can help pay for their medical bills or legal fees if they sue you. It can also cover damages to customers’ vehicles or other property while they’re in your shop.
Business Interruption: This coverage can help keep your auto repair shop afloat if it’s forced to shut down temporarily. For instance, if a fire damages your shop and it needs to be closed for repairs, business interruption insurance can help cover lost income, rent, and other expenses until you can reopen.
Garage Liability Insurance
General Liability: General liability coverage protects your auto repair shop against claims of bodily injury, property damage, and advertising injury. It can help cover legal fees and damages if a customer is injured in your shop or if you’re accused of misleading advertising.
Auto Liability: Auto liability coverage protects your auto repair shop if a vehicle is damaged while in your care, custody, or control. For example, if you’re test-driving a customer’s car and get into an accident, auto liability coverage can help pay for any damages or injuries that result.
Workers’ Compensation Insurance
Who is covered: Workers’ compensation insurance covers your employees, including mechanics and other workers. It can also cover temporary and part-time employees, depending on the state you’re in.
What it covers: Workers’ compensation insurance covers medical expenses, lost wages, and other costs associated with work-related injuries or illnesses. It can also offer disability benefits and death benefits to employees and their families in some cases.
Commercial Auto Insurance
Liability: Liability coverage helps pay for damages and injuries you cause to others while driving your company vehicle.
Collision: Collision coverage pays for damages to your company vehicle if you’re involved in an accident.
Comprehensive: Comprehensive coverage helps pay for damages not caused by an accident, such as theft, vandalism, or weather-related damage.
Umbrella Insurance
What it covers: Umbrella insurance covers liability insurance claims that exceed your other policy limits, such as those stemming from a customer’s injury in your shop or a car accident caused by one of your employees.
Why you need it: Umbrella insurance can help protect your auto repair shop from going bankrupt if you’re hit by a big lawsuit. Without it, you could be on the hook for the excess amount of the judgment.
Cyber Liability Insurance
Data Breach: Cyber Liability Insurance can help cover the costs associated with a data breach, such as notifying affected customers, offering credit monitoring services, and paying legal fees if you’re sued.
Cyber Attack: Cyber Liability Insurance can help cover the costs associated with a cyber attack, such as repairing damaged systems, restoring lost data, and paying legal fees if you’re sued.
