Auto repair shops and other businesses in the auto industry are an important part of the American landscape. With car parts wearing out and accidents impacting even the most careful drivers, families and individuals rely on repair shops to keep their cars–and day-to-day lives–running smoothly.
For their part, those in the auto industry must rely on adequate insurance protection to keep their businesses up and running in case of injury or damage that occurs at or during work.
Whether you own a small shop as a sole proprietor or you are part of a larger group, it’s essential you protect your business–and an important piece of this is garage liability insurance.
Garage Liability Insurance, Explained
Garage liability insurance is an umbrella policy you can add to your existing business liability policy. It covers property damaged on site as well as personal injuries not typically covered under your baseline insurance policy. Injuries that occur in auto repair shops are often more serious than injuries sustained in other types of businesses, which necessitates an extra layer of coverage to protect your assets from lawsuits.
It is important to purchase garage liability insurance if you operate out of a garage or structure separate from your home. Businesses that can benefit from garage insurance include:
Auto repair shops
Auto detail shops
Auto glass repair shops
Towing companies
Service stations
Auto dealerships
Tire repair shops
While this is the base insurance your shop needs, you may want to explore additional coverage to keep your business protected.
What Additional Insurance Does Your Shop Need?
Your auto shop will likely need additional insurance beyond garage and general liability insurance. In order to protect your business, you may want to consider the following insurance policies:
Garagekeepers’ Insurance
Often, cars that are being assessed and repaired need to be kept at the shop overnight or even for weeks at a time. Garagekeepers' insurance protects your customers’ cars while they are under your care or stored in your shop.
Property and Equipment Insurance
If your employee accidentally does something that causes failure or damage to a piece of your equipment–or if damage is caused by other factors such as a power surge, breakdown of mechanics, etc.–this will cover the necessary repairs.
Business Auto Insurance
You and the mechanics who work for you will most likely need to test drive the cars to assess issues and make sure things are working properly once repairs have taken place. You will need auto insurance to cover any accidents that may happen while behind the wheel.
Business Interruption Insurance
If you were to suffer an unfortunate event that causes your business to be destroyed or heavily compromised, you would still need to pay bills, salaries, etc. Business interruption insurance helps to cover these costs.
Workers’ Compensation Insurance
Accidents happen no matter how much training you provide or how careful an employee is in their tasks. Workers' compensation insurance protects your employees by providing insurance to them in the case of a work-related injury.
Business Property Insurance
Sometimes, things that happen completely out of our control damage or destroy important property or materials. Business property insurance protects your business in the event of an earthquake, fire, or other catastrophe. It also covers equipment, signage, etc., left outside the building on the premises.
Cyber Liability Insurance
Unfortunately, data breaches and software viruses are more common than ever. Since most shops store their customers’ data electronically, including pertinent financial information, you may want to consider purchasing cyber liability insurance. It can protect your business from fees that arise from a cyber attack, including lawsuits and credit monitoring.
If you have questions about any of these offerings or how to purchase garage liability insurance, please reach out to our office. We would love to walk you through your options.
Our team is dedicated to supporting our local community and our clients by helping them protect their businesses. Our team is ready and willing to help you move forward with confidence, knowing your business is protected and your employees are taken care of.