Auto Shop Mechanics: Get Cna Insurance, Protect Your Business

Mechanics auto shops can get a variety of insurance coverages from CNA, including commercial auto insurance, vehicle service contracts, and guaranteed asset protection (GAP). Commercial auto insurance covers bodily injury and property damage caused by owned, hired, and non-owned vehicles used for business. Vehicle service contracts provide coverage for mechanical breakdowns, which can help reduce the costs of repairs or replacements that are not covered by the manufacturer's warranty. GAP coverage helps reduce or eliminate outstanding balances on a loan in the event of a total loss, where the insurance company does not cover the full amount. In addition to these main coverages, CNA also offers optional endorsements such as Drive Other Car coverage for executive officers, as well as risk control solutions like the Driver Distractions program and Cargo Securement.

Commercial auto insurance for businesses

Commercial auto insurance is a necessity for businesses that use vehicles for work purposes. This includes businesses that use vehicles to transport people, goods, or equipment, as well as those that use vehicles to travel between job sites or client locations. Commercial auto insurance provides coverage for bodily injury and property damage caused by owned, hired, and non-owned vehicles used for business.

In California, for example, any company that uses vehicles for business purposes must have commercial vehicle insurance. This includes vehicles owned by the business as well as personal vehicles used for work-related activities such as making deliveries or picking up supplies. Commercial auto insurance is important because it protects businesses from legal and financial jeopardy in the event of an accident. Without it, businesses may face expensive lawsuits, settlements, and penalties for not having the proper insurance.

The cost of commercial auto insurance varies depending on several factors, including the vehicle type and value, location, employee driving records, policy deductible, and coverage limits. On average, commercial auto insurance costs around $113 per month, but this can be higher for businesses with more risk factors or those located in areas with higher claim rates.

Businesses can also consider additional coverages beyond the minimum requirements, such as uninsured/underinsured motorist coverage, medical payments (MedPay) coverage, collision coverage, comprehensive coverage, and towing and labour coverage. These options provide extra protection for businesses and their employees in the event of an accident or vehicle-related incident.

By understanding the specific needs and risks of their business, companies can work with insurance providers to tailor a commercial auto insurance policy that provides adequate coverage and peace of mind.

General liability insurance

Mechanics' auto shops face a variety of risks that can result in costly liabilities. General liability insurance is a crucial component of an auto shop's insurance coverage, protecting the business from financial losses arising from accidents, property damage, and other incidents.

In addition to general liability insurance, auto shops may also consider garage liability insurance, which specifically protects customers' vehicles while they are in the care of the auto shop. This type of insurance can provide coverage if the auto shop is found responsible for physical damage to a customer's vehicle.

The cost of general liability insurance for mechanics' auto shops can vary depending on several factors, including the size of the business, the number of employees, and the value of business property. It is important for auto shops to assess their specific needs and risks when determining the appropriate level of coverage and choosing an insurance policy that best suits their requirements.

By investing in comprehensive general liability insurance, mechanics' auto shops can gain peace of mind, knowing that they are protected against a wide range of potential risks and liabilities. This type of insurance plays a crucial role in mitigating financial losses and ensuring the long-term sustainability of the business.

Business owner's policy

CNA Connect is a Business Owners Policy (BOP) that provides tailored coverage for small business owners to help them stay competitive. CNA Connect offers a broad range of property and general liability coverages for over 600 classes of businesses. This includes areas such as risks to buildings, business income, business personal property, computer equipment, accounts receivable, money and securities, and more.

There are also more than 300 optional coverage endorsements that offer increased deductibles and a wide range of limits. CNA Connect offers coverage and higher limits on a single policy, with the flexibility to exclude coverages to reduce premiums and the ability to tailor coverages to meet specific needs.

Some of the key coverages included in the base policy are:

• Business Income and Extra Expense: Coverage is automatically included on a 12-month Actual Loss Sustained basis, with options to increase up to 24 months.
• Coinsurance: CNA Connect waives coinsurance, which is a penalty charged on building or business personal property that is not insured to value.
• Inflation Guard: This includes a 3% inflation guard for Building and Business Personal Property coverage, with additional percentage options available.
• Extended Business Income: Coverage is automatically included for up to 60 days, with options to select up to 365 days.
• Business Personal Property: The limit at the described premises also applies to Business Personal Property in transit and off premises for up to 60 consecutive days at a temporary location.
• Equipment Breakdown: Included as a cause of loss, with an option to exclude if desired.
• Business Income Loss as a Result of Equipment Breakdown: Covered on an Actual Loss Sustained basis.
• Money and Securities: Coverage is included within the definition of Business Personal Property and up to the Business Personal Property limit.
• Computers, Software, and Data (EDP): Coverage for on-premises EDP is included at $50,000, in addition to the Business Personal Property limit. Coverage for off-premises EDP, including laptops and PDAs, is provided worldwide at a $25,000 limit, with higher limits available.
• Business Income/Extra Expense as a Result of a Computer (EDP, including website) Loss: Covered on an Actual Loss Sustained basis with a 12-hour deductible.
• Targeted Hacker Attack: Coverage is included for up to $25,000 in Direct Damage and $25,000 in Business Income.
• Employee Dishonesty: Coverage is included at a $25,000 limit, with options up to $1,000,000 available.
• Forgery and Alteration: Coverage is included at a $25,000 limit, with options up to $1,000,000 available.
• Fine Arts: Coverage is included at $25,000, with limits up to $1,000,000 available.
• Identity Theft/Recovery for Business Owners: Coverage is included at $25,000.

CNA Connect also includes a range of liability coverages, such as Aggregate Limits of Insurance per location for Premises Liability, Blanket Additional Insured, and Employment Practices/Fiduciary Liability.

Workers' compensation insurance

For auto repair shop owners, workers' compensation insurance is invaluable. It includes employer's liability insurance, which protects the business in case an employee decides to take legal action over an injury. This coverage can help with legal defence costs, even if the lawsuit is unfounded. However, it's important to note that employer's liability insurance has limits on the amount it will pay out for a lawsuit.

The cost of workers' compensation insurance for auto repair shops is typically calculated based on the business's payroll. The rate is determined by the classification of work performed by employees, the experience modification rate (claims history), and the payroll amount per $100. Additionally, each state has its own laws regarding workers' compensation requirements, with some states mandating coverage even for part-time workers.

Overall, workers' compensation insurance is essential for any auto repair shop or mechanic business. It ensures that employees are taken care of financially and medically in the event of a work-related injury, while also providing protection for business owners against potential lawsuits. By having this coverage in place, auto repair shops can create a safer and more secure work environment for their employees.

Commercial umbrella insurance

For auto mechanic shops, commercial umbrella insurance can be a valuable addition to their insurance portfolio. Auto repair shops face various liabilities, including customer injury, employee illness, and property damage. Commercial umbrella insurance can provide extra coverage for these types of claims if they exceed the limits of the shop's general liability, commercial auto, or employer's liability insurance policies.

When considering commercial umbrella insurance, it is important to note that it does not cover all types of claims. For example, it does not extend the limits of commercial property insurance policies and does not cover employee discrimination lawsuits. Additionally, commercial umbrella insurance must be purchased in conjunction with an underlying policy, such as general liability insurance.

Overall, commercial umbrella insurance can provide auto mechanic shops with added protection against costly claims and lawsuits, helping to reduce the financial risks associated with running a business.

Frequently asked questions