As an auto body repair business, your job is to repair automobiles to their original form, but are you actively protecting your business from a crash and burn? There’s a lot of risk involved in auto body repair, from protecting the client’s automobile against further damage, theft or vandalism, to protecting the employees working in garages filled with heavy electric equipment.
There are various types of insurance that you will want to investigate depending on the specialties and services your shop offers. Listed below are the core insurance coverages you’ll want for your auto repair businesses.
Garage Liability Insurance
While this type of insurance does not cover your assets, it does protect you from the cost of lawsuits and financial liability that may arise in the company’s legal defense of accidents, property damage or other incidents. The last thing you want is your company to sink due to the costs required to defend yourself in a case where you rightfully win the judgement.
Garage Keepers Insurance
Whereas garage liability insurance helps protect you from bodily injury and property damage claims and the lawsuits that can happen due to negligence, garage keepers insurance protects your customer’s vehicle in case something happens to it while in your care, custody or control. This insurance is especially important to protect you against circumstances that are out of your control such as fire, theft, vandalism or weather damage. Garage Keepers coverage is generally not included in the standard garage liability insurance and must be added to the policy. It is designed for auto body shops, mechanical repair shops, oil change shops, emissions testing sites and various other auto establishments that service and temporarily store others’ vehicles.
Business Auto Insurance
Do you ever have an employee run an errand for you in their vehicle? If you don’t have a business auto insurance policy in place, you could run into some big-time trouble if they were to be involved in an accident. The addition of a business auto policy can protect your employees if they have to run errands on the clock, such as picking up parts or supplies, meeting with customers or even simply running to the PO box to grab the mail.
Depending on your garage specialities, there are various coverages that you can add to your insurance policies so your auto shop has adequate protection for your business operations, employees, equipment and customers’ assets that are entrusted in your care. The three types of insurance listed above will get you started, but make sure to explore your coverage options and learn which ones are necessary for your particular business entity.
Author: Kristen Smith
Kristen is an insurance industry veteran with over 15 years business insurance experience and is the agency manager of Edge Insurance located in Columbia, MO.