Whether you have owned your auto repair business for years or are just starting out, it is important to regularly review your insurance policy to ensure your business is fully covered. From car detailing and restoration to collision repair and oil changes, no matter what the scope or scale of your business, being appropriately insured helps mitigate your financial risk.
When it comes to the auto repair industry, it is key to consider other risk factors to prevent underinsurance. Mistakes can happen in garages, and it’s best to be covered if they do happen. Consider the following policies for your auto repair shop to ensure that you are comprehensively covered.
Workers Compensation Garage Insurance
As an employer, you must carry workers compensation insurance – a legal requirement in all states including Michigan. Even if you only employ one person, taking out this coverage is key to keeping your employees and business safe and legal.
This plan is especially important in the auto repair business where there is an increased risk of work-related injury due to the use of heavy machinery and heavyweight vehicles. Compensation for injuries sustained by employees during the course of employment, due to accidents or negligence, are covered under this plan.
Auto Repair Shop General Liability Insurance
This policy protects you from liability for vehicles damaged through accident or theft while in your care.
This is an area in which many auto repair businesses are underinsured as they underestimate the risk associated with keeping multiple vehicles on site. You should consider this type of policy or let us help you review your existing one, especially if you have recently scaled up.
However, this policy is not just for businesses operating from a single facility. Individuals working in mobile repair, such as on-site windshield work, should also consider this plan as it covers you while vehicles are under your care. This plan is especially key if you also test drive the vehicles.
Commercial Vehicle Insurance
If you have business-owned or leased vehicles, it is a good idea to have commercial vehicle insurance in place. Commercial vehicles require higher coverage than personal policies as they have a wider application of use such as transporting tools and machinery, customers, and/or are operated by employees, which therefore increases the risk for damage, injury, and accidents. As a result, these plans provide liability and damage protection for your vehicles, employee bodily injury, and third-party claims for physical or property damage.
Additional Garage Insurance Policies
In addition to the above, you may also consider the following areas for coverage:
- Specialty Liability Insurance
- Business Owners Policy
- Crime Insurance
- Disability Insurance
- Property Insurance
At Melton McFadden, we know that no two businesses are alike, which is why our experienced agents are on hand to help tailor your insurance policy to fit your needs. We’d be happy to discuss garage insurance costs or any other auto repair shop insurance factors with you.
Garage Keepers Insurance for Auto Repairs and Property Damage
Additionally, as an auto repair business, you’ll need to look into garage keepers insurance. It will provide added protection to your business as it will cover you in case of damage to a customer’s vehicle while it’s in your care. It will act as another layer of protection for your business.
Garage liability and garage keepers insurance policies do share some similarities, protecting you against thefts and accidents. However, the latter will also offer coverage in the case of:
- Extreme weather
Any necessary auto repairs resulting from these incidents will be covered by garage keepers insurance.
Optionally, you can see with your auto care insurance agency to extend coverage for any personal property within the vehicles in your care. While this isn’t a required extension, it can impact your reputation and enhance your client relationships.
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Is Car Repair Insurance Worth the Cost?
Getting all these different types of policies from your auto care insurance agency can add up to be quite an investment. The exact cost you’ll have to cover depends entirely on the type of business you do and the type of liabilities you’re responsible for. However, regardless of the price, these insurance policies are often well worth it.
When running an auto repair business, you’re facing unique risks that can easily open you up to legal and financial repercussions. You’re entirely accountable for anything that happens to the vehicles in your care. Any unforeseen event can drive your business to the ground. It’s essential to be proactive and keep yourself, your business, and your employees fully protected.
Your auto care insurance agency will work closely together with you to find the best solutions for your business and at the most affordable cost. It’s a small price to pay to keep your business thriving.
Contact Melton McFadden today if you think that your Michigan business could benefit from any of these plans.