General liability insurance covers most liability issues. Your business garage liability policy provides specific coverage that an umbrella policy won’t. Automobile repair shops are a unique business hosting a wide variety of mechanical services from engine repair to tune up for all different makes and models of vehicles. Sometimes the shop will specialize in transmission or brakes or even other types of vehicles like snowmobiles or recreation vehicles. One common factor that affects all different types of auto garages is the risk of running the business. It is important to have accurate and sufficient insurance coverage in place in case a single accident in the shop results in a lawsuit that could damage the financial health of your business. Automobile service and repair insurance, occasionally called garage insurance, will protect liabilities faced by garage owners, auto body shops or auto repair shops. Here are the basics of what you as an auto mechanic will need to know to ensure you are covered.
Who Needs Mechanic Business Insurance?
Typically known as auto service and repair insurance, the following businesses need garage insurance.
- Retail tire dealers
- Auto repair shops
- Mechanics
- Body repair and collision shops
- Garages
- Tow or impound lots
- Auto sound and communications installation and repair shops
- Muffler shops
Business Owner’s Policy (BOP) For Auto Mechanics
Many mechanics and automotive repair shops have a Business Owner’s Policy (BOP) for their insurance needs. It combines three types of insurance coverages that auto mechanics and vehicle businesses need to help protect them from different risks.
- General liability insurance helps protect your auto repair business from claims that it caused bodily injury or property damage to someone else’s belongings. If a mechanic hits another vehicle, garage liability pays for the damage to that vehicle. For that coverage, your business will need garage keepers insurance coverage.
- Commercial property insurance helps protect the owned or rented building and equipment you use to run your shop. Property and equipment insurance covers your shop in case of power surges, mechanical breakdowns, burned out motors, or if employee accidents cause the equipment to fail. Additional coverage is usually offered for portable tools, employment practices, liability insurance, and business continuation insurance.
- Business income Insurance helps recover some of your lost income if you can’t operate your auto repair shop or garage because of covered property damage.Your business income coverage, also known as business interruption coverage or extra expense coverage, can cover lost income when you need to close your business suddenly. This coverage applies an extra layer of protection beyond general commercial property insurance.
How To Avoid Filing A Service Claim
Even though garage liability insurance and garage keepers insurance will provide you with the coverage you need, there are ways to avoid claims.
Here are ways to avoid filing a claim:
- Have video surveillance to deter theft.
- Have a well-lit location to deter both vandalism and theft.
- Keep all of the vehicles stored indoors when no one is there and secure the perimeter with a fence.
- Have preventative equipment available such as smoke detectors, fire extinguishers, and a sprinkler system.
- Hire good help who have proven driving records.
Auto repair shop insurance can be a complicated topic. As a business owner of an auto shop it is a good idea to get expert advice and support. Insurance agents can help you customize a menu of insurance solutions to meet your specific needs.
One of Gartman Insurance’s Specialities is Garage Repair Shop Insurance
Garage repair shops face high financial risks simply because of the nature of the business. A specialty insurance policy can protect your garage repair shop from potentially devastating financial losses.
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About Gartman Insurance
About Gartman InsuranceWe are your trusted, family-owned independent insurance agency. Your family, your business, and your possessions are all important to you, but you may not know how to best protect them. We have the experience and local knowledge to navigate the unique risks you face, serving as your insurance advisor. Since 1999, Gartman Insurance Agency has proudly served our customers in Kentucky, Ohio, Indiana, Tennesee, and Alabama, helping them to find the right insurance coverage to fit their needs. Our customers are our priority, and we are always finding ways to better serve them, whether that’s helping them find a better policy or giving them the power of choice when it comes to their insurance coverage.
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