Insurance for Auto Shops Information
Auto repair shops have many unique risks—fixing vehicles requires the use of specialized machinery and power tools, exposure to toxic or flammable chemicals and materials used for repairs, and the constant moving of vehicles around the property. Vehicles, tools and equipment, office supplies and the building itself are all at risk of being damaged during day-to-day shop operations.
It’s essential to understand the challenges presented by these exposures since they can cause significant damage to your client’s property, serious physical harm to your employees and irreversible financial consequences for your auto shop. It’s important to protect yourself from commercial auto exposures. Lupton & Luce, Inc. can help you evaluate your risk exposure and the appropriate insurance coverage for needed protection.
Why Is Insurance Important?
Auto repair shops face unique exposures and risks, and if the shop isn’t properly protected, it could face significant repercussions following an accident, damage or loss. In addition to being responsible for customers’ vehicles, many auto shops have their employees drive vehicles for business purposes, such as picking up parts and materials, towing or providing mobile auto repair services. These occasions can all increase your risk exposure, making it even more critical for business owners to have the proper insurance for their level of risk to protect their businesses.
What Coverage Should an Auto Shop Have?
Numerous kinds of insurance coverage may be advantageous for an auto shop to carry. Some insurances that may be worthwhile to consider for your business include:
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General liability can help provide protection against claims involving property damage or bodily injuries that involve your products, services or business operations.
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Garagekeepers’ liability insurance can help protect customers’ vehicles while they are kept at the business location for parking, storage or to perform maintenance or services in the event of fire, theft, vandalism, explosion or lightning. There are generally two types of garagekeepers’ liability coverage available:
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Workers’ comp is required in almost every state for repair shops with employees. Workers’ compensation insurance can provide financial assistance for qualifying employees during their recovery from a work-related injury or illness.
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Commercial auto insurance can help offer you protection if you own or operate business vehicles. This coverage can protect your vehicles and your employee drivers.
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Commercial property insurance can help protect the owned or rented building and equipment you use to run your shop. Coverage may include drills, hand tools, lifts, jacks, air compressors, battery chargers and jumpers.
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Equipment breakdown insurance can help offer protection when your equipment, such as jacks and lifts, is damaged and needs to be repaired or replaced quickly to maintain operations.
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Business interruption insurance may help you recover some of your lost income if you can’t operate your auto repair shop or garage because of covered property damage.
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Business crime insurance can help insure the expensive parts, equipment and vehicles that may be at an auto repair shop against theft or damage. Auto body shops are also at risk of computer fraud, forgery or alteration, cash theft and employee dishonesty.
What Does Insurance Cost?
The cost of insurance for a repair shop depends on a variety of factors, including:
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Value of business personal property
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Business size and revenue
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Types of insurance purchased
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Policy limits and deductibles
We can help you determine the specific cost of your insurance based on the particular coverage you choose.
How We Can Help
Lupton & Luce, Inc. can assess your unique exposures to give you the best protection for your auto repair shop. Call us today at 631-727-4114 to get started on your coverage.