Any business with a physical location is at risk of property damage. Once you add customers and their cars into the mix, you’re looking at an environment with many moving parts. The only surefire way to protect the finances of your auto-related business is by having a backup plan: business insurance for auto repair shops, for example.
If you adopt the motto “anything can happen” early on, you’ll be ready to spring into action when a mishap, accident or setback that affects your organization does occur. Plus, you’ll get back on your feet faster so you can continue serving your customers and making a steady income.
The Many Forms of Property Damage
You name it, it’s probably happened to an auto-related business somewhere, at some time. Consider this: many commercial buildings opt for a flat roof rather than a sloped one. Heavy snowfall can build up, causing a roof collapse that damages nearly everything inside (not to mention the structural integrity of your building).
Or, you could find yourself in the situation that a Michigan-based auto parts store did earlier this year. One Monday morning, a customer driving a minivan accidentally pressed down on the gas instead of the brake, as MLive reports. Their vehicle struck the front wall of the business, crashing through the windows. Luckily, the driver was not injured. But the owner was left to pick up the pieces left afterward, likely including broken glass, ruined merchandise and structural repairs.
Last year, an auto parts store in Milwaukee caught fire during a period of civil unrest in 2016. The O’Reilly Auto Parts store was destroyed as a result, according to the Milwaukee Journal Sentinel. While the manager sent employees to work at other stores around the city so they would not lose their income, the inventory and structure were not salvageable.
How Businesses Handle the Aftermath
These situations outline just how quickly your very definition of “business as usual” can change. But there’s a way to sustain property damage without dipping into the red in an attempt to avoid bankruptcy or permanent closure, therefore adding insult to injury. As the Insurance Information Institute outlines, a Business Owners Policy (BOP) complete with property insurance generally covers:
− Buildings: Structures, permanent fixtures, machinery/equipment, appliances, etc.
− Building contents: Computers, inventory, raw materials, leased property
− Others’ property in your care: Excluding vehicles (in basic policies)
What kind of events does property insurance cover? Covered events can vary by policy—because some businesses need features beyond those that come standard—but some typical staples are fire, internal flooding, embezzlement, electrical surges and theft. Many companies purchase additional coverage for accidents like flooding and earthquakes, depending on their location. If you store customer information, you may want to look into cyber insurance in case your computer system faces a malicious hack.
It’s up to you, as a business owner, to put together a policy that meets your needs—and to know it well. When you’re ready to learn more about business insurance for auto repair shops and auto parts stores, visit CoverHound.