Auto Shops And The Insurance Of Auto Parts: What You Need To Know

Auto shops face a variety of risks, from customer injuries to property damage, theft, cyber breaches, and employee lawsuits. As such, they require several types of insurance to protect themselves from financial harm in the event of an accident or incident. Auto shops should have general liability insurance to cover customer injuries and property damage, as well as workers' compensation insurance for employee injuries and illnesses. They may also need garage keeper's insurance to protect customers' vehicles, commercial property insurance to cover damage to their building and equipment, and commercial auto insurance for company vehicles.

General liability insurance

Auto shops face a unique set of risks and challenges, from customer injuries and property damage to accidents involving company vehicles. As such, it's important for them to have the right insurance coverage to protect their business. One of the most important types of insurance for auto shops is general liability insurance.

In addition to customer injuries, general liability insurance also covers customer property damage. For instance, if an employee accidentally damages a customer's car while moving it, the insurance can help pay for the repairs. It also provides coverage for advertising injuries, such as defamation (both libel and slander) and copyright infringement.

Small automotive businesses may be able to bundle general liability insurance with commercial property insurance in a Business Owner's Policy (BOP). A BOP typically costs less than purchasing each policy separately and is suitable for businesses with fewer than 100 employees, a small office or shop, annual revenue of less than $1 million, and operating in a low-risk industry.

Commercial property insurance

The cost of commercial property insurance depends on various factors, including the size of the business, the value of its assets, and the chosen deductible amount. The deductible is the amount the business owner pays upfront before the insurance company covers the rest of the claim. A higher deductible typically results in a lower insurance rate.

In addition to commercial property insurance, auto shops should consider other types of insurance, such as general liability insurance, worker's compensation insurance, and commercial auto insurance, to protect themselves from different risks and ensure comprehensive coverage.

Overall, commercial property insurance is a crucial component of an auto shop's insurance portfolio, helping them safeguard their assets and continue operating in the event of unforeseen circumstances.

Business interruption insurance

Auto parts shops and auto repair shops face a variety of risks, including customer injuries, property damage, data breaches, defamation claims, theft, cyber breaches, and employee lawsuits. To mitigate these risks, auto shops can purchase business insurance, which can be bundled with general liability coverage and commercial property insurance in a Business Owner's Policy (BOP) package to save on costs.

One type of coverage that auto shops may want to consider is business interruption insurance, also known as business income insurance. This type of insurance covers lost income, operating expenses, payroll costs, taxes, and debt repayment if the business is unable to operate due to property damage or other covered events. For example, if an auto shop is forced to close temporarily due to a fire or other property damage, business interruption insurance can help cover the day-to-day operating expenses and lost profits during that time.

In addition to business interruption insurance, auto shops may also want to consider other types of coverage, such as general liability insurance, commercial property insurance, workers' compensation insurance, and cyber liability insurance. These types of insurance can help protect auto shops from financial losses due to customer injuries, property damage, employee injuries, data breaches, and other risks.

By investing in quality insurance, auto shops can protect themselves from unexpected costs and ensure the safety of their clients' vehicles and their own peace of mind.

Workers' compensation insurance

The policy is designed to safeguard employees in the event of various accidents and injuries, including repetitive stress injuries and slipping, tripping, or falling. Additionally, it provides disability benefits and covers retraining expenses for employees unable to return to their previous roles. In the tragic event of an employee's death, their dependents may receive death benefits.

The cost of workers' compensation insurance is determined by factors such as the business's payroll, the type of work performed, and the number of employees. By implementing safety measures, such as employee training and providing proper equipment, auto shops can reduce the likelihood of injuries and lower their insurance premiums.

Overall, workers' compensation insurance is a vital safeguard for both employees and employers in the auto shop industry, providing peace of mind and financial protection in the event of accidents or illnesses arising from work-related activities.

Commercial auto insurance

• Damage to the vehicle(s)
• Injury to someone else
• Damage to someone else's property
• Contractors: Businesses that use trucks or vans to transport tools and equipment, such as contractors, landscapers, construction companies, and other tradespeople.
• Delivery companies: Businesses that use cars or trucks to deliver goods to customers.
• Transportation services: Companies that use cars or vans to transport passengers, such as taxis, limousines, and other livery services.
• Food services: Restaurants, food trucks, and caterers that use vehicles for delivering food or operating mobile kitchens.
• Non-profit organisations: Organisations that use buses or vans to transport volunteers or clients.

Additionally, commercial auto insurance can be beneficial for shops and restaurants that use a car to run errands or transport clients.

Several factors can influence the cost of commercial auto insurance, including the type of business, the type of vehicle, the driving records of employees, the location of the company, and the amount of liability coverage chosen.

Frequently asked questions