What Kinds of Coverage Should an Auto Repair Shop Have?

Auto repair shops are there for people who have trouble with everything from faulty spark plugs to needing an oil change to working on a transmission. With so many customers coming in and out, as well as cars and car parts, the door is wide open for plenty of liabilities. With a busy shop operating daily, one small risk could trip up an entire business.

With this in mind, it’s important to go over why having an effective insurance package installed is vital to an auto repair shop. Commercial auto insurance in Orlando, Florida, and business insurance policies are in place to assist auto repair shop owners looking to stay safeguarded against the plethora of risks that their business faces every single day. Here are a few examples of when having insurance in place is key to keeping your garage doors open and what kinds of insurance you can have.

Heavy Equipment, Heavy Risks

You know better than anyone off the street that your auto repair shop can be a danger at any moment. Heavy machinery is all around and dangerous tools could be in the middle of freak accidents. If a customer comes in with a question and something improbable, but still possible happens, ending with an injury of some sort, that will definitely spell trouble for you.

Medical and legal bills can sink your business and your namesake. Without commercial liability insurance in place to cover property damage and bodily injury to third parties, one small accident can close your garage doors for good.

Damage to Vehicles

Customers sometimes have to leave their cars in your shop overnight or even for a week as you handle the tough jobs, such as transmission repair. But the longer they’re stored in your garage, the higher the risk of having something happen to them. From storms and flooding to fire damage to theft, customers’ cars that become compromised in any way will mean trouble for you.

This is when a Business Owners Policy (BOP) is an effective plan to cover these types of issues. This will provide financial assistance in the event of a loss so a garage can continue to operate with little interruption.

Unsatisfied Customers

Clients who come in may complain about customer service issues, but these can usually be handled internally between employee and owner/manager. But if a customer alleges your auto shop made matters worse for their car due to a bungled repair job, this opens you up to a heap of liabilities.

Customers can sue for poor workmanship and poor quality on the overall repair of their car, especially if it’s a luxury vehicle with a higher standard of risk. Having Errors and omissions insurance ready to go covers your garage in the event that a client lays responsibility on you for a failed job or less-than-adequate results.

 

About Newman Crane & Associates Insurance

Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Since 1965, Newman Crane & Associates Insurance has been helping Central Floridians make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (407) 859-3691 for a consultation.