Basic Coverages For Auto Service Shop Businesses

Acquiring the right coverage in your commercial insurance policy will help in protecting the assets of your institution, as well as ensuring the protection of your employees and patrons. With the proper protection plan a venture can obtain relief that their company will be covered from the high costs of automobile maintenance, medical bills, and the risks of potential litigation. For a business owner to discover how you can thoroughly find the exact auto repair shop insurance policy for your business, know the distinct coverage selections your organization have to add into its coverage.

Property Coverage

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

Property coverage may vary depending on the location of your business. For a company that owns the development where they occupy, this coverage is important in protecting the company and eliminating any losses from unforeseen scenarios. However, if your company is leasing their site, 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 set up your own unique 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, which is the depreciated value of your property.

Insurance on Own Autos

When it comes to auto repair shop insurance, car coverage is very vital, of you own one. This coverage starts with protecting any cars that can be identified as company owned vehicles, as most businesses utilize these cars to tow customers automobiles, auto parts delivery and pick ups, and aid in the transportation of customers.

Garage Keeper Liability

Another form of car coverage that is important to have is regarding covering your customer's automobiles, for comprehensive and collision while they are in your possession. Called Garage Keeper Liability, this coverage can be Primary, or Legal. Garage Keeper Primary Liability will pay for damages to your customers' vehicles no matter why, as long as the autos were under your control at the time of damage. Garage Keeper Legal Liability will pay only if your company is found legally liable to the damages caused to the customer's auto. Example: A customer's auto that was left for some repair work catches on fire because of faulty electrical work done on the auto 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 vehicle destruction.


Covering Your Liability

For a auto service shop Garage Liability often covers Commercial General Liability (slip and fall, etc) as well as auto liability arising the use of non owned auto in the course of the garage operations! This is typically related to third-party claims that are often unforeseen by the vehicle service 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.


Associate Coverage

A variety of formats including health, dental, and Worker's 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 team members.

The ability to accurately insure your car repair business starts off with recognizing the particular areas you will need coverage for. By having a better knowledge 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 cost.


Copyright (c) 2011 Ed Sneineh