Insurance for Automotive Repair & Maintenance
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What Insurance Do Automotive Repair & Maintenance Need?
General Liability Insurance protects your small business against claims of third-party bodily injury and property damage, reputational harm and advertising injury. It covers medical bills, repair costs & legal fees.
Cyber Liability Insurance protects you from the theft of sensitive data. If you suffer a data breach or software attack, Cyber Liability Insurance will cover the costs of notifying and restoring affected customers, recovering data and repairing security systems.
Commercial Property Insurance will provide coverage for your properties in case damage renders them impossible to rent or lease.
Garage keepers liability insurance keeps you protected if a vechicle kept in your garage is damaged by a fire, theft, vandalism, collision or other disaster. You'll also need this if you provide a towing services.
Workers Compensation covers your employees' medical costs and lost wages while recovering from a work-related injury or illness. The employee gives up the right to sue your company in return for receiving cash and benefits from Workers Compensation. In some states it’s mandatory for businesses!
Errors & Omission Insurance (E&O), is a type of professional liability insurance. It protects you from being legal claims that you made a mistake when offering your services. E&O covers your defence fees & settlement costs.
Frequently Asked Questions
Why do Automotive Repair Shops need insurance?
According to the Department of Transportation, the average household has 1.9 personal vehicles, and that number continues to rise making your business more important than ever. Customers need your expertise to help them maintain their vehicles and accomplish their daily tasks. As an auto repair shop owner, you work with a variety of customers every day which is rewarding, but it also increases the risks you face. Auto repair shop insurance or mechanic insurance protects your business and reputation when lawsuits occur.
This industry includes various types of shops, such as auto repair shops and garages, oil change shops, window repair services, brake shops, transmission repair shops and other businesses that focus on the maintenance and repair of different car parts. Individuals who work in this industry can include mechanics, electricians, and store clerks.
What are risks Automotive Repair and Maintenance Shops could face?
Because you work directly with customers’ valued assets, you face many unique risks including:
- Vehicle Damage: Customers leave cars and trucks in your care for the day or overnight. If an employee wrecks a car on a test drive or somebody breaks into it, the customer can sue you for the damage.
- Mechanic Errors: Mechanics and auto technicians often offer a multipoint inspection of their services. If you overlook a safety problem that leads to an auto accident, you are responsible for the damages.
- Employee injury: Mechanics use the same tools and hand movements for a number of projects. Repetitive motions like these can lead carpal tunnel which is often considered a work-related injury.
- Cyber Breaches: Hackers attack businesses big and small. Plenty of auto repair and maintenance shops store client information on computer systems including names, addresses, email, and payment methods. If your computers were compromised, how would you pay for the mandated notices, investigation, and any lawsuits that arise?
How can I reduce the risk in my auto repair shop?
You need to have Auto Repair Shop insurance as your primary risk management. Ensure that your employees have adequate protection, this ensures that the dangers of working in an automotive shop are mitigated. Then protect your property from fire and the theft as both can interrupt your business productivity and lose income.
What are the common types of garage insurance?
The common types of garage insurance for an auto repair shop are: Repair Shop insurance, Body Shop insurance, Radiator Services insurance, Transmission Shop insurance, Tow Truck insurance, and Muffler Shop insurance. These are just the basics, so it's best to ask your insurance provider the garage insurance you need for your shop.