Most people know how to drive their vehicle, but not necessarily how to fix it. They turn the key, hope for the best and call you if something goes wrong. Thanks to your hands-on attitude and years of experience, you’re able to make a living expertly diagnosing and restoring automobiles to working order.
Every day is different when you run an auto repair shop. From routine brake replacements to completely overhauling major vehicle systems after an accident, there’s no telling what challenges will confront you between opening and closing up shop for the day. One thing is certain: in an industry with so many moving parts, business insurance for auto repair shops is a must-have.
Here are four key reasons why you need to make sure your business insurance policies are up to snuff.
A customer is in the wrong place at the wrong time
Your garage is like a second home to you and your team, but customers are less familiar with the territory. One misstep could put them directly in harm’s way. Let’s say a customer comes into the garage to ask a question about their vehicle and gets too close to a piece of equipment. In the blink of an eye, your auto repair shop could be liable for ensuing medical bills, personal injury and property damage.
For example, a 2013 jury verdict awarded one woman
$222,000 after the hydraulic lift at McGrath City Honda in Chicago, IL crushed her left big toe. Marbella Smilovitz received damages for her medical expenses, pain and suffering, loss of normal life and disfigurement after the accident.
Without commercial general liability insurance to cover property damage and bodily injury to third parties, one unfortunate accident can easily bankrupt an auto repair shop for good.
An overnight fire damages your garage and several vehicles inside
What if you get a call in the middle of the night that your garage is on fire? As one firefighter on the scene of a recent, two-alarm auto repair shop fire in Sacramento remarked, vehicles inside a garage complicate the situation by presenting an extra hazard. That’s why it’s so important to carry adequate property insurance as part of a Business Owners Policy (BOP).
As the Insurance Information Institute writes , “the purpose of property insurance for the small business is to provide critical financial assistance in the event of a loss, so the enterprise can continue to operate with as little disruption as possible.” Property coverage can help pay for damage to your structure, machinery and electronics as well as others’ property in your custody after a covered disaster.
Your employee needs physical therapy for a serious sprain
U.S. Bureau of Labor Statistics concludes that mechanics have higher rates of fatalities, injuries and illnesses on the job than the average worker. Sprains are some of the most common injuries, and your employees may need to seek medical care, time off work and physical therapy for an injury at some point.
Workers compensation covers the costs of job-related injuries and illnesses while protecting you from employee lawsuits.
A customer alleges your auto shop botched a specialty repair
Customers may disagree with your price quotes and repair jobs from time to time. Just look at one Manhattan-based lawyer who claimed a repair shop botched his $215,000 Bentley with “poor workmanship and poor quality,” according to the New York Post. The customer sued the shop, alleging he could not drive his luxury car for several weeks.
Errors and omissions insurance, or professional liability insurance, “covers your company in the event that a client holds you responsible for a service you provided, or failed to provide, that did not have the expected or promised results.” This type of liability coverage can cover your settlement and defense costs, no matter the verdict.
Ready to take a closer look at business insurance for your auto repair shop? The experts at CoverHound are here to help! Learn more about pricing and options today.