Texas is Growing! That means more drivers!
And for auto repair shops that means more customers!
That also means you are at more RISK to insurance claims!
Owning an auto repair shop leaves you liable to four main things: vehicle damage, work-related injury, cyber breaches, and mechanical error. Have a closer look at some of these small business insurances to see what your specific business needs out of its Auto Repair Shop Insurance Package.
General Liability will help guard your business’s income from the following:
· Advertising mistakes – were there one too many zeros in that ‘Summer Special’ then you wanted there to be? How much can a mistake like that cost your business?
· Lawsuits resulting from a physical injury – the customer did not pay attention to the yellow safety lines and now you need to fight the lawsuit and protect your income at the same time.
· Third-party property damage, a stray nail on the floor damaged your customer’s luxury tire, ‘who will be liable for that bill’ does not need to be your biggest worry.
Garage Keeper’s Liability
Garage Keeper’s Insurance protects you from being liable when a customer’s car is stored at your business. Certain requirements need to be met (like undercover parking) for this insurance to be applicable.
Commercial Property Insurance
The term ‘property’ includes:
· The building your business owns – was there a fire that damaged part of your building? Fixing what needs to be fixed so your income can flow again is a top priority; having Commercial Property Insurance can help with this process.
· Your equipment – this is your livelihood. If your car lifts are damaged by the roof leaking after heavy rains then your business should not have to suffer for it.
· Your tools – auto repair tools are valuable and easily fenced by criminals. If your business is broken into and your tools are stolen, wondering how you will work tomorrow should not be at the top of your stress list.
Worker’s Compensation Insurance
Worker’s/workman’s compensation or ‘comp’ is essential if you have employees. Having a worker’s compensation insurance can prevent your employees from suing you for injury on the job. This type of insurance protects you and your business in the short and long term:
· Short-term, auto repair is a hands-on job and accidents do happen. All precautions must be taken so that injury is avoided. However, on the off chance that injury occurs, you know that you are covered.
· Long-term, the repetitive and physical nature of auto repair can lend itself to injuries that need constant care or rehabilitation such as carpal tunnel and back injuries. Employees can claim worker’s compensation for these conditions.
Cyber Liability Insurance
Your business will most likely make use of digital accounting services, a billing program, automated invoices, etc. This all links to your business storing your customer’s personal data in some fashion. This makes you vulnerable to data breaches. Read our article on Cyber Liability Insurance to fully understand your responsibility as a business owner in the modern world.
Tow truck insurance
If your auto repair shop offers a tow truck service then the insurance to go with it is crucial. This insurance will cover your business if the customer’s vehicle is damaged in transit or their possessions are stolen.
Mechanical Error and Omission Insurance
Mechanical E&O Insurance covers your business from:
· Legal action due to mechanical failure of a part/system that you repaired that resulted in bodily harm or further damage to the vehicle. This can be an honest mistake.
· Legal action due to you/your mechanic not informing the customer of necessary services or follow-ups that the vehicle requires that results in bodily harm. Finding out from the manufacturer that a part that you use is faulty and failing to inform the customer.
Take a careful look at your business and contact us for the best Auto Repair Shop Insurance package.