Vehicles break down, it is just the inevitability of owning one. This is great for auto repair shops, since they will always have work. Routinely handling other people’s vehicles, auto repair shops carry a huge responsibility to return the vehicle back to its owner without additional damage cosmetically, so coverage is important.
Coverwallet began its journey in New York City in 2015 operating under the
Aon Insurance banner. At Coverwallet, you can access everything you need to
keep your company well-protected at an unbeatable price.
With a 100-year history of insuring businesses, Hiscox is well-known across
America and globally. With more than 500,000 small business customers,
Hiscox is fully aware and trained in the unique risks a business can face.
Thimble provides business insurance that can be tailored to your business by
the year, month, day, or even the job. At Thimble, the process to getting
the right business insurance is simple, scalable, and flexible.
Auto repair shop insurance can help your business mitigate risks if a claim is made against it and protect its finances. Additionally, working in an auto repair shop can be dangerous work. Employees and clients alike can get injured if they do not follow the safety protocols. This is why a good policy is a godsend when claims do come up.
Who needs auto repair shop insurance?
If your business is involved in auto repairs and/or upgrades of vehicles, you should have a good auto repair shop insurance policy to cover the risks that are associated with your day to day operations. Without it, you will be looking to pay out of pocket for any accidents that may happen where there is bodily injury or property damage.
What insurance do auto repair shop businesses need?
Auto repair shops use a wide variety of tools and materials to be able to fulfill a client’s order. The risk that goes into each order can vary, but should be considered when deciding on insurance. Typical insurance for an auto repair shop can include general liability insurance, workers’ compensation insurance, commercial auto insurance, and more.
Common types of auto repair shop insurance
General liability insurance
If a claim is made by a third party against your business due to bodily injury or property damage, a good general liability policy will cover the expenses incurred. For the most part, general liability insurance covers will cover common risks and exposures associated with your business.
Commercial auto insurance
This type of business insurance protects the business’s vehicles when they are on the road in the event of an auto accident. It can help cover expenses for bodily injury and property damage.
Workers’ compensation insurance
If an employee is injured while on the job, workers’ compensation insurance will kick in and cover the costs of lost wages, medical expenses, and rehabilitation. If an employee accuses the business of negligence and opens a lawsuit against the company, employers’ liability insurance will cover the expenses associated with the lawsuit such as court fees, lawyer fees, and settlements. Employers’ liability insurance is usually included in the workers’ compensation policy, but you should always verify the terms of your specific policy.
Commercial property insurance
This type of insurance covers any real estate owned by your business and any equipment, and inventory stored within property bounds. It is best for owners that rent or own physical locations.
Business owner’s insurance
To save some money on the premium, a business owner’s policy combines both the general liability and commercial property insurance into one plan. It is a cost effective way to get coverage for your auto repair shop.
What are the limits of auto repair shop insurance?
Auto repair shops tend to make the same repairs to make on a large number of vehicles, which eliminates a lot of risk. Nonetheless, you should still consider weighing the risks of your business and choosing an auto repair shop insurance policy that will comfortably cover these risks. Below are the median limits that auto repair shops choose, but your business may require different limits.
General liability insurance
$1,000,000 per occurrence $2,000,000 aggregate
Commercial auto insurance
$1,000,000 aggregate
Workers’ compensation insurance
$100,000 bodily injury per accident
Commercial property insurance
$1,000,000 per occurrence $2,000,000 aggregate
Business owner’s insurance
$1,000,000 per occurrence $2,000,000 aggregate
How much does auto repair shop insurance cost?
There are different factors that can affect how much auto repair shop insurance costs. These factors can include the location of your business, the history of claims made, and the number of employees your business employs. Grouping policies together with the same insurance provider can help save money through discounts. Below you can find the median costs for each type of insurance mentioned. Your actual premium may vary.
General liability insurance
$564 annually
Commercial auto insurance
$778 annually
Workers’ compensation insurance
$1,667 annually
Commercial property insurance
$756 annually
Business owner’s insurance
$1,422 annually
How to choose the best auto repair shop insurance?
There are lots of providers who insure auto repair shops. Choosing the right one can be challenging, however there are several ways to determine if a provider is the best option for you. Some providers specialize in policies for small businesses while others cover chains or franchises of auto repair shops. Take some time to sit down and assess where your business is exposed and search for an insurance policy that matches your needs.
Shop around by collecting different quotes from providers.
Make an assessment of the risks associated with your business and choose a policy that covers them adequately.
A provider should be able to customize their existing products to meet your needs. If they are not able to, it may be best to move on to a different one.
Making sure the provider has an A rating with the Better Business Bureau or similar, credible rating entity. You can also look up reviews by other customers to see what the customer opinion is about the company.
Providers that focus on building relationships with their customers are almost always willing to work with clients on cost-efficient packages of coverage.
