As an automotive repair shop, you keep your customers on the road. We all drive a lot these days, whether it be one mile, 10 miles, 30 miles, or just around the corner, keeping good care of our automobiles is very important. That starts with finding a great and trusted local mechanic to help keep your car rolling for years to come.
Auto repair shops range in the services they provide from vehicle mechanical and electrical repair to auto body repair services, such as dent and scratch removal. Most auto repair shops employ mechanics and electricians to repair vehicles that need basic maintenance or heavy-duty repair work. They might also specialize in certain types of vehicles or repair work like transmissions, tires, or brakes.
If you own and operate an auto repair shop, you most likely know that you are open to more than a fair share of risks. These involve liability risks from potential damage or theft of customer vehicles, along with employee risks of working with the heavy and often dangerous equipment and tools. Protect these and other risks by obtaining auto repair insurance.
As insurance agents, we help keep you in business. It can only take a moment for the unexpected to happen and before you know it, your business could be the one in need of repair. Having a robust auto repair shop insurance portfolio will help keep your auto repair center running smoothly.
Types of Auto Repair Shop Insurance
The following are the main types of auto repair shop insurance policies that will be the most beneficial to your business.
Garage Liability Insurance
A garage liability insurance policy covers an auto repair shop against lawsuits and medical costs arising from the injury of someone while on the premises. Auto repair shops often produce more severe injuries, so special liability policies are included to provide the necessary protection for your business.
Garage Keepers Insurance
Your repair jobs might not be finished in one day, which means you will be storing your customers' vehicles in your repair shop garage. You could be liable if a customer's car is vandalized or stolen while in your repair shop. This insurance will provide protection for your customers' cars while they are in your repair shop.
Business Auto Insurance
Your employees will have to test drive the vehicles to ensure they are working correctly. If this is the case, you will need to purchase a commercial auto insurance policy that will protect your employee, your customers' car and your business case an accident occurs. This insurance also provides protection in case your employee needs to run out and pick up a part for a car, get supplies, or even goes on a lunch run and gets into an accident.
Business Interruption Insurance
This insurance helps keep you in business when unexpected events occur. You will still need to pay the bills, including employee wages, rent or mortgage, supplies, taxes, and so on. You will probably need income yourself. Business interruption insurance can help keep your business afloat as well as pay for a temporary site, if needed.
In New York, this is a mandatory insurance and you are required to provide workers' compensation insurance to provide benefits in case your employees are injured in a job-related accident. It covers medical care, rehabilitation and helps to replace lost wages until they are able to return to work.
Business Property Insurance
This policy can protect your auto repair ships against damages to your property from fire, vandalism, theft, storms, and accidents. The property also includes outdoor signage, fencing, furniture, or inventory.
Property and Equipment Insurance
You may want to have additional coverage for special equipment in case of power surges, mechanical breakdowns, burned out motors, or if your employee accidentally does something that causes the equipment to fail.
A number of crimes can occur in your auto repair shop, including theft and vandalism to a dishonest employee who is embezzling money. Since you are responsible for your customers' vehicles while they are in your shop, it is important to obtain crime insurance
Data Breach Insurance
Your customers' credit card information can be stolen while in your care, which legally requires you to take action. New York has breach notification laws that require a business owner to inform any affected customers of a data breach and also specify the manner and period in which the business owner must inform customers.
As you notice, there are a lot insurance options that an auto repair shop owner needs to consider to protect his or her business. Except business auto and workers' compensation, many of these policies are bundled together by the insurance companies in a package policy so that you do not need to buy each policy individually.
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Dutchess County NY residents, at Pepe Insurance Agency, we work with you to make sure you have the coverage you need, while delivering it at the best price. Give us a call at (845) 724-3031 or fill out our Contact Us form to get in touch with an agent. We want to make sure you meet your insurance goals and protect what is most important to you!
Written by Anthony Pepe and Bill Pepe