Imagine This:
A mechanic is repairing a customer’s vehicle. Everything goes wrong all of a sudden. A tool slips, leaving a scratch on the car’s paint. A loyal customer becomes upset and starts demanding compensation.
That small blunder might result in thousands of dollars in legal bills for your store if you don’t have the necessary insurance.
So, let’s explore the seven different kinds of auto repair shop insurance in detail. As a safeguard for their business, staff, and customers every owner of an auto repair shop should have these.
Types of Auto Repair Shop Insurance
The following provides complete details on each type of insurance that you should be aware of:
1. General Liability Insurance
Consider a customer coming into your shop to get their vehicle fixed. One of your techs accidentally causes damage to another customer’s car while doing the work. The customer decides to sue for the cost of the repairs since they are frustrated.
General liability insurance protects you in this case against:
- Lawsuit costs
- Medical bills
- Expenses associated with third-party injuries or property damage that occurs in your shop
Consider general liability insurance as the fundamental safety net that provides comfort to your shop.
Here are more details about this insurance according to Nationwide!
2. Worker’s Compensation Insurance
Imagine one of your employees working hard on a car. They accidentally injure themselves with a slip or a burn. Worker’s compensation insurance covers:
- Medical expenses
- Lost wages for injured employees
It ensures they’re taken care of while you stay protected from lawsuits. This policy isn’t just about protecting your employees. It’s about maintaining a smooth workflow.
If a mechanic gets injured, your operations might halt. This insurance ensures your shop continues running smoothly.
Learn more about this insurance according to the Worker’s Compensation Board!
3. Property Insurance
Picture This
A fire breaks out in the repair shop. Everything from tools to vehicles is damaged. That’s where property insurance covers damage to your:
- Building
- Tools
- Equipment
These damages are caused by fire, theft, or natural disasters. If a disaster hits, property insurance ensures your shop can recover. Without it, rebuilding could take years or may not even be possible.
4. Garage Keepers Insurance
If a car is left unattended overnight. An unexpected storm causes a tree branch to fall and damage it. Without this specialized coverage, your shop could be held liable for the repair costs.
With garage keepers insurance, your shop stays protected and your customers stay happy.
Every auto repair shop has customers who trust you with their vehicles. When a customer’s car is in your care, garage keepers insurance covers damage to the vehicle, whether it is:
- Parked in your lot
- Being operated in the garage
Here are more details about Garage Keepers Insurance 101 according to Thimble!
5. Commercial Auto Insurance
Having commercial auto insurance is essential if your shop has a fleet of service vehicles. It covers:
- Costs of repairs
- Medical expenses
- Liability claims
This way, your business isn’t left with a major financial setback. It goes beyond only keeping the cars safe. It’s about ensuring that even in the event of a roadside incident, your business keeps running efficiently.
Here are more details about this insurance according to Travelers!
6. Business Interruption Insurance
Picture This
A massive storm rolls through. It causes extensive damage to your shop. Your revenue stops and you are unable to open your doors. The loss of revenue during downtime is covered by business interruption insurance. It helps you pay expenses while you’re unable to operate, like:
- Rent
- Utilities
- Employee wages
- Guarantees a speedy recovery
7. Cyber Liability Insurance
Your shop relies on technology for everything from processing credit card payments to keeping track of client information. However, what would happen if the shop’s systems were compromised?
Cyber liability insurance helps protect you from the financial fallout of data breaches. It covers costs like:
- Customer notifications
- Legal fees
- Fines
Learn more about the ultimate guide to auto repair business insurance here!
How Much Does an Insurance for Auto Repair Shop Cost?
Opening an auto repair shop is an exciting venture, but it comes with its fair share of costs that every prospective business owner must consider. Among these expenses, one of the most important is insurance. To learn more about the costs of opening an auto repair shop, click here!
Consider yourself at your auto repair business on a hectic day. A mechanic is working on a classic car. During the repair, an accident happens. The difficult challenge of managing repair costs and maybe losing the customer’s trust is now before you.
Insurance coverage for auto repair shops can be beneficial in this situation.
But here’s the burning question: How much does the peace of mind cost? It varies, of course!
- General Liability Insurance: Between $52 and $250 per month
- Workers’ Compensation Insurance: Up to $149 per month
- Commercial Property Insurance: Between $35 and $62 per month
Get more details via Next Insurance here!
Choosing the Right Auto Repair Shop Insurance Coverage
You wouldn’t pick an insurance policy that doesn’t fit your shop’s unique needs. But do auto repair shops have insurance? The answer is yes!
Steps to Choose the Right Insurance
Don’t just pick insurance based on cost—consider your business’s unique needs. Insurance isn’t about having just any safety net; it’s about having the right safety net that’s tailored to your risks.
Assess Your Risks
Think through your business’s vulnerabilities.
- What could go wrong?
- A natural disaster?
- Employee injuries?
Compare Providers
- Don’t settle for the first offer
- Find a provider who knows the ins and outs of the auto repair industry
Look for Customizable Policies
- Insurance tailored to your specific needs
- The right policy is not always the cheapest
- It should be the most comprehensive for your business
Evaluate the Claims Process
Will your insurer be there when you need them?
- Have an insurer who is responsive and efficient when you need them most
- Ensure their claims process is simple and quick
- Minimize downtime by choosing an insurer with a fast claims process
Conclusion
Running an auto repair shop involves hard work, constant activity, and some risks. Accidents can happen. But having the right insurance keeps your business safe.
Insurance protects your assets, employees, and customers, helping you avoid unexpected costs. Secure your business with these essential types of auto repair shop insurance along with auto repair shop management software and drive forward with confidence.
