Auto Body Shop Insurance & Collision Repair Shop Insurance

Property exposure: Your biggest concerns come from the flammable paints, chemicals, solvents, and welding gas tanks that you use. To reduce your property risks, you should...

• Properly label, separate, and store flammables in approved locked metal cabinets.
• Make sure that all painting, coating, and rustproofing is done within spray booths with proper ventilation.
• Make sure that all wiring and light fixtures are UL-approved and meet electrical codes.
• Hire only licensed and insured electricians to do electrical work on your shop.
• Make sure all welders are properly trained to perform work behind flash/welding curtains.
• Keep all welding gas tanks in a safe, secure location.

Crime exposures: Your biggest concerns are employee theft, holdups, and burglary. To manage your crime-related risks, you can...

• Do criminal background checks before hiring.
• Make daily bank deposits that you don't have excess cash on your premises overnight.
• Install video cameras.
• Monitor inventory regularly.
• Conduct annual audits.
• Install panic buttons.
• Install a monitored security system.

Inland marine exposure: Your computers are some of your biggest inland marine exposures. Ask yourself the following questions to determine your inland marine computer risks. 

• Do you offer credit on repair balances?
• Do you use computers to monitor inventory?
• Do you use computers to mix paint?

As an added precaution, you should have backup copies of all customer and vendor records, including computer records, stored off-site.

Premises liability exposure: Your biggest concerns for your premises liability are slips and falls. To reduce the chances of someone taking a nasty fall, you should...

• Set up a customer waiting area.
• Set up signs clearly warning that customers are not permitted in the garage area.
• Repair frayed carpets and tears.
• Fix all holes and cracks in the floors.
• Repair all cracks and holes in the sidewalk and parking lots.
• Clean all spills immediately.
• Remove all snow and ice to prevent slips and falls.
• Make sure all emergency and exit lights work.
• Install sufficient exterior lighting.
• Install chains or fences if you keep customer cars on your lot overnight.

Environmental impairment exposures: Your auto body shop faces environmental exposures because paint and solvents are toxic. Reduce the risk of polluting the environment by...

• Setting up procedures to follow to prevent accidental leakage and contamination of water and soil.
• Setting up contracts for the proper disposal of all environmentally dangerous chemicals.

Automobile exposures: Do you have employees picking up parts and materials? Who is driving your vehicles? Your auto body shop might face automobile exposures. Lower your risk by...

• Doing regular MVR checkups on all drivers.
• Taking the time to regularly maintain your vehicles so that tires and brakes are in good order. Make sure that you keep good copies of those records!

Garagekeepers exposure: Anything can happen to a customer vehicle while it is in your garage. Your customers leave their cars in your care, custody, and control, so you should take the following precautions to reduce your risk. 

• Be sure to properly secure all vehicles. What if one fell off a lift?
• Take care when you're changing tires. A bolt that isn't tightened properly when changing a tire could cause the tire to fall off while your client is driving.
• Make sure that employees double check cars before working on them. You don't want to paint someone's car the wrong color!
• Keep customer keys in a locked box.
• Require photo ID before giving car keys back to the owner.
• Install plenty of exterior lighting in your lot.
• Install a chain or fence to prevent vehicle theft after hours and on the weekend.

Workers compensation exposures: Your employees face significant risks in their jobs. To help protect the people who work in your shop, you should...

• Make sure that all hoists and jacks are well-maintained and procedures are in place to prevent vehicles from falling.
• Enforce good house cleaning habits. Clean up leaks and spills immediately to prevent slips and falls. Do a shop cleaning at the end of every day.
• Teach good lifting techniques to avoid back injury.
• Provide safety equipment and make sure that your employees wear it. 
• Remember that prolonged exposure to fumes and vapors from paint spray can cause lung and skin problems. 

Here is the minimum recommended collision shop insurance coverage:

• Business Personal Property
• Business Income
• Employee Dishonesty
• Money and Securities
• Accounts Receivable
• Computers, Valuable Papers, and Records
• General Liability
• Employee Benefits
• Environmental Impairment
• Umbrella
• Business Automobile Liability and Physical Damage
• Hired and Nonownership Auto
• Garagekeepers
• Workers Compensation

Other body shop insurance coverages to consider:

• Building
• Earthquake
• Flood
• Leasehold Interest
• Real Property Legal Liability
• Forgery
• Computer Fraud
• Signs
• Cyber liability
• Employment-related Practices
• Stop Gap Liability