Auto repair shops can face different insurance risks that are unique to their line of business. These risks can involve the shop itself, employees that are hired and customers. Employees such as auto mechanic technicians, sales and service advisors, valet drivers, etc. can face harm, accidents, or injuries from machinery and mechanical tools they work with. In addition, even mechanical errors can occur by auto technicians and mechanics, as well as theft and vandalism. Furthermore, incidents such as vehicle damage to customer’s cars while they are parked or service at the shop can become a huge liability. Even more so, with the ever-changing technology used to collect client information and payments, auto repairs shops are also targets for cyber security breaches and attacks just like other businesses.
Having the right coverages in place can protect your auto repair shop and make sure your business keeps running smoothly and successfully. What type of insurance coverages are available for auto repair shops?
Types of Insurance Coverages:
· Garage Liability: Protects auto repair shops from liabilities like damages caused by faulty work and customer slips and falls. It doesn’t cover your building or mechanic tools, so you’ll want to consider property and equipment insurance if you’re needing protection for these types of assets.
· Portable Tools or Employee Tools coverage: Your shop is broken into, and employees' tools that are used in your business are stolen. Coverage for this incident would require an employee tools coverage form.
· Garage keepers insurance: Your business always has other people’s vehicles in your possession, so, you need this coverage to protect you if a vehicle in your possession is damaged.
· Business Auto: provides coverage for a company's use of cars, trucks, vans, and other vehicles while carrying out its business. Coverage may include vehicles owned or leased by the company, hired by the company, or employee-owned vehicles used for business purposes.
· Hired and Non-owned Auto: You are driving customer’s vehicles constantly. Should there be a loss while you are driving, this coverage could offer protection.
· Errors and Omissions: Commonly referred to as professional liability coverage, this coverage protects against mistakes which can damage a customer’s vehicle no matter how careful you and your employees are.
· Workers’ Compensation: Protects you in the event an employee suffers an injury or disease arising in the course and the scope of their employment, regardless of negligence on your part.
· Cyber Security: Provides coverage when there are cyber incidents, including breaches of personally identifying or personally sensitive information, threats of unauthorized intrusion into or interference with computers systems, damages to data and systems from computer attacks,
and cyber-related litigation.
Many insurance companies have special insurance coverages specifically for auto repair shops. Since no auto repair shop provides all of the same types of services, contact Paroubek Insurance and learn more about what types of business insurance coverages you need for your specialized auto repair shop.