If you have an auto body shop or an auto repair shop, there are plenty of risks that you need to be aware of. Knowing about the risks you face is the first step to managing those risks and preventing them from threatening your business’s financial well-being. It’s not that we’re trying to spread “doom and gloom” or make you paranoid – we want you to be prepared. So, we’re going to go over 5 risks that your auto shops or garage faces – and present an auto repair shop insurance solution for each.
5 risks that auto repair shops face (and the insurance solutions)
1. A customer trips and falls on your property – and decides to sue you.
Of course, since you run an auto repair shop, your clients have to come onto your property – and a lot of people come and go every day as they drop off their cars, pick up their cars, and so on. But when customers come and go, that opens your business up to liability if someone gets hurt or claims that you caused damage to their property. For example, what if someone takes a bad fall in your parking lot when they trip over an uneven section of pavement?
Pro tip: Don’t allow your customers into the actual garage area of your shop. Instead, have a comfortable waiting area that’s free of the hazards a garage presents.
The insurance solution: General liability.
General liability can cover claims that you caused someone bodily injury or property damage – for example, the slip-and-fall scenario. It will help you cover your legal obligation to the other person (medical bills, for instance) and it helps you cover your legal expenses if you face a lawsuit. That’s why general liability is a major piece of your auto repair shop insurance plan.
2. There’s a fire at your shop.
The prospect of a fire starting at your shop is terrifying. There is a ton of flammable stuff in an auto shop – paints, oils, solvents, degreasers, the list goes on. Plus, you might also have welding services…which involve lots of scary sparks that could get out of control. Not to mention that there’s electrical wiring and such all over the place, making electrical fire a possibility. Anyways – fire could be extremely devastating if you don’t have the right auto repair shop insurance.
The insurance solution: Property insurance.
Property insurance can help you get your shop back if there’s a fire that damages it. It’s important to make sure you have the right property insurance to protect your garage and shop – make sure you know what losses are covered by your auto repair shop insurance and which are not.
Protect your business from fires. Get a quick auto repair insurance quote today.
3. An employee gets hurt on the job.
No matter how well-trained your employees are and how long they’ve spent working around cars, accidents happen. One of your staff could get hurt on the job – they’re working around lots of equipment and machinery that could quickly become dangerous. There are vehicle hoists, welding equipment, chemicals…and then there’s the chance that they could take a bad fall…or hurt their back while trying to lift something…It’s not hard to see how someone could accidentally get hurt on the job.
The insurance solution: Worker’s compensation.
Worker’s compensation insurance can help cover your employee’s medical bills and treatment if they’re injured on the job. It also covers a portion of their lost wages while they have to take time off to recover. That way your employee gets the medical care they need without having to worry about the bills or where income is going to come from while they can’t work.
4. Something happens to your client’s cars.
As an auto repair shop, you keep lots of vehicles belonging to customers on your premises. You have care, custody, and control of your clients’ vehicles. So, you’re responsible for those cars, and you could be held responsible if something happened to them on your watch.
The insurance solution: Garagekeepers insurance.
Garagekeepers insurance can help you out if something happened to your clients’ cars while they’re being kept on your premises in your care, custody, and control. It covers losses like fire, vandalism, theft, and lightning. This is another crucial building block of your auto repair shop insurance plan.
5. An employee steals money.
Well, no one wants to think that their employees would ever steal from them. But what if someone gets a case of sticky fingers and pockets some money from your auto shop? You could lose a good amount of money, depending on how much your employee steals from you.
The insurance solution: Employee dishonesty insurance.
Employee dishonesty insurance can help you if an employee embezzles money from you or otherwise steals from your business.
Other coverages you can consider for your business.
Naturally, these aren’t the only types of insurance you can consider for your auto body shop. Here are some others that can protect your business from financial loss.
- Business income (a.k.a. business interruption)
- Environmental impairment
- Umbrella insurance
- Computers
- Goods in transit
- Accounts receivable
- Valuable papers and records
So, though there are many risks that you face as a mechanic, auto repair shop, or auto body shop, you can protect yourself from them with the right insurance. Get started with auto repair shop insurance quotes today by filling out our online form, hopping on LiveChat, or giving us a call today.