Antique TractorsFind rare Collectables

How to Rightly Insure Your Car Service Shop

Having the right coverage in your commercial insurance policy will assist in protecting the assets of your company, as well as ensuring the safety of your staff and clients. With the precise coverage a business can get contentment that their company will be insured from the high costs of auto repair or replacement, medical bills, and the risks of possible legal action. In order to find how you can appropriately find the right auto service shop insurance policy for your business, identify the different coverage selections your company will need to encompass into its insurance coverage.

Business Property Coverage

Property coverage may contain Building, Business Personal Property or BPP, Signs, and Money, to state a few. Particular coverage to the auto services businesses include mechanic tools, hydraulic equipments, paint booths, frame straightening machine, paint supplies, etc.

Property coverage can vary according on the location of your company. For a company that owns the building where they occupy, this coverage is important in protecting the company and preventing any losses from surprising circumstances. However, if your company is leasing their space, it is essential you inquire about the property coverage provided by the building owners. Some companies may consider canopy and roof air conditioning units as part of the building, while others do not. Finding exactly what is covered in those policies will help to identify disadvantages and establish your own exclusive auto repair shop insurance policy.

It is always better to get insurance based on Replacement Cost (cost to replace your property) as opposed to Actual Cash Value, or the depreciated value of your property.

Insurance on Own Autos

When it comes to car service shop insurance , car coverage is very important, of you own one. This coverage starts with protecting any automobiles that can be identified as company owned vehicles, as most businesses use these autos to tow customers autos, pick up parts, and aid in the transportation of customers.

Garage Keeper Liability

Another form of vehicle coverage that is important to utilize is regarding covering your customer’s cars, for comprehensive and collision while they are under your control. Called Garage Keeper Liability, this coverage can be Primary, or Legal. Garage Keeper Primary Liability will pay for damages to your clients’ vehicles regardless why, as long as the automobiles were under your control at the time of damage. Garage Keeper Legal Liability will pay only if you are found legally responsible for the damages caused to the customer’s vehicle. Example: A customer’s car that was kept for some body work catches on fire because of defective electrical work done on the automobile 2 months ago by the dealer. If you have Primary coverage, your company will pay, regardless. If you have Legal coverage, your company may not pay based on the argument that you did not cause or contribute to the car destruction.

Covering Your Liability

For a vehicle service shop Garage Liability ordinarily covers Commercial General Liability (slip and fall, etc) as well as auto liability resulting from the use of non owned automobile in the course of the garage operations! This is typically related to third-party claims that are often unforeseen by the auto body shop. If a consumer is injured on site or an associate is involved in an accident while test driving a customer’s vehicle, this policy can help with the likely result of lawsuits and protect the safety of others.

Other Insurance

A variety of designs including health, dental, and Workman Compensation coverage are called “Associate Coverage”. Having all of these protection policies will not only protect your associates in the event of an accident, but will also make your business highly appealing to high-quality workforce.

The potential to correctly insure your automobile service shop starts with figuring out the exact areas you will need coverage for. By having a greater understanding of what property, associate, vehicle, and liability coverage offers you in an auto auto service shop insurance policy, you can locate the best protection for your business at the most competitive premiums.

About the Author

Author has over 21 years of experience in the practice and education of Chicago auto insurance. Insurance Navy is a leader in providing quotes for automobile body business insurance.