Fundamental Coverages For Automobile Repair And Body Shop Businesses

Copyright (c) 2011 Ed Sneineh

Possessing the most ideal protection in your commercial insurance policy will help in protecting the interests of your institution, as well as ensuring the protection of your workers and clients. With the correct coverage a business can obtain satisfaction that their business will be compensated from the high costs of automobile maintenance, medical bills, and the risks of potential lawsuit. For a business owner to figure out how you can effectively find the accurate auto body shop insurance policy for your business, know the different coverage selection your company need to add into its coverage.

Protecting Business Property

Property coverage may contain Building, Business Personal Property or BPP, Signs, and Money, to talk about a few. Particular coverage to the auto services businesses include mechanic tools, hydraulic equipments, paint booths, frame straightening machine, paint supplies, etc.

Property coverage can vary according on the area of your business. For a company that owns the structure where they operate out of, this coverage is important in protecting the establishment and stopping any losses from unpredicted cases. However, if your business is renting their location, it is essential you inquire about the property coverage provided by the building owners. Some companies may consider canopy and roof air conditioning units as part of the building, while others do not. Finding exactly what is covered in those policies will help to identify disadvantages and establish your own exclusive auto repair shop insurance policy.

It is always better to get insurance based on Replacement Cost (cost to replace your property new) as opposed to Actual Cash Value, or the depreciated value of your property.

Covering Own Vehicles

When it comes to auto service shop insurance, vehicle coverage is very important, of you own one. This coverage starts with protecting any autos that can be identified as company owned vehicles, as most repair & body shops use these automobiles to tow customers cars, pick up parts, and aid in the transportation of customers.

Garage Keeper Liability

Another form of car coverage that is important to have is regarding covering your customer's automobiles, for comprehensive and collision while they are under your control. Called Garage Keeper Liability, this coverage can be Primary, or Legal. Garage Keeper Primary Liability will pay for damages to your clients' vehicles no matter why, as long as the automobiles were in your possession at the time of damage. Garage Keeper Legal Liability will pay only if you are found legally liable to the damages caused to the customer's automobile. Example: A customer's automobile that was left for some body work catches on fire because of faulty electrical work completed on the car 2 months ago by the dealer. If you have Primary coverage, your company will pay, regardless. If you have Legal coverage, your company may not pay based on the argument that you did not cause or contribute to the car damage.

Covering Your Liability

For a car repair shop Garage Liability normally covers Commercial General Liability (slip and fall, etc) as well as auto liability resulting from the use of non owned car in the course of the garage operations! This is typically related to third-party claims that are often unforeseen by the automobile body shop. If a consumer is injured on site or an associate is involved in an accident while test driving a customer's vehicle, this policy can help with the likely result of lawsuits and protect the safety of others.

Other Insurance Plans

A variety of designs including medical, dental, and Worker's Compensation coverage are called "Associate Coverage". Having all of these protection policies will not only protect your associates in the event of an accident, but will also make your company highly appealing to high-quality team members.

The ability to thoroughly insure your automobile service business begins with determining the specific areas you will need coverage for. By having a better knowledge of what property, associate, vehicle, and liability coverage offers you in an auto vehicle service shop insurance policy, you can locate the best protection for your business at the best premiums.

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