Cars have a lot of parts—about 30,000, to be exact. Over time, these parts require replacement due to wear and tear, accidents and mechanical failure. For many drivers, this means a visit to an auto parts store for consultation with a sales associate and a fair price on everything from headlight bulbs to sparkplugs, windshield wiper blades, fluids, alternators and more.
But running an auto parts store comes with physical and professional risks—just like any other commercial enterprise. Are you prepared to pay for a lawsuit, medical bills or other damages at the drop of a hat? Business insurance for auto parts stores exists as a precaution against financial catastrophe if an accident or incident does occur in your shop.
Here are four reasons (of many) auto parts stores need business insurance.
A customer accuses your salesperson of faulty advice
Customers often walk into auto parts stores clutching only pieces of paper or smartphone screenshots to describe the part they need. From there, your sales staff helps determine which specific part they need and locates it or puts in an order.
But what if a customer returns a week later claiming your salesperson’s advice led them to purchase an incorrect part, which in turn led to the meltdown of their vehicle? Now they’re on your doorstep, threatening to sue you for at least the value of the extensive repairs. This situation will end a lot more favorably for everyone involved if you have professional liability insurance (which covers claims of negligence, misrepresentation and inaccurate advice).
On the other hand, if a customer claims a part you sold them was defective or came with inadequate instructions, you’ll need product liability coverage as part of a commercial general liability (CGL) plan.
Someone drives into the side of your store
Did you know 60 vehicle-into-building crashes occur daily in the United States? As a result, over 4,000 people suffer injuries annually, and as many as 500 people die. If you receive the unfortunate phone call that someone has driven into your auto parts store (or see it with your own eyes), you’ll have less to worry about with property protection as part of a Business Owners Policy (BOP). This essential coverage protects the structure and contents of your building against certain accidents and disasters by paying outright replacement costs or actual cash value for repair or replacement.
An auto part falls off a shelf/wall display and hits a customer
A customer is standing on their tippy-toes, reaching for a sizeable product, when it falls off and hits them square in the eye. They’re dazed, in pain and worried about their eyesight so they head to the hospital right away. Since it happened in your store, you may be found liable.
A CGL policy will pay for medical bills, property damage and personal injury to third parties occurring as a result of your business operations—possibly even preventing a formal lawsuit.
A box containing auto parts falls off a shelf and hits an employee
Let’s say a crate of auto parts falls on an employee. They’ll need medical attention and time off from work. Luckily, both costs are covered under workers’ compensation coverage for employees injured on the job.
Various types of business insurance for your auto parts store are like various components of a car: they all work together to help the whole machine run smoothly. Check out your options and find an affordable policy with CoverHound!