Here at InsuranceHub, we provide affordable auto services insurance options for:
- General Auto Repair Shop Insurance
- Body & Collision Repair Shop Insurance
- Auto Detailing Business Insurance
- Paintless Dent Removal Shop Insurance
Your clients rely on your advice and the the work that you do on their cars, which is why businesses in the auto services industry can be sued for fraud and negligence in performing their duties. In fact, here in the United States, auto repair shops, body & collision shops, auto detailers and paintless dent removal providers are hit with lawsuits every day.
Did you know that in recent years, millions of dollars have been awarded to car owners from liability suits for defective or negligent car repairs? Don't be without the coverage your business needs.
Here at InsuranceHub, we have experience helping small auto shop owners just like you.
- Change transmissions or brakes
- Repair car accident damage
- Wax, polish and detail
- Push golf ball sized dents out of fenders without having to paint
We want to help your shop to grow and thrive with peace of mind knowing that your liabilities are covered.
Types of exposure that auto repair shops and body shops need protection from:
Professional liability: This could be very serious if you provide mechanical repairs to a car that result in a car wreck or fire, leaving someone hospitalized, injured or even dead. Beware of defective mechanic work. Hire only the best mechanics, painters & body people to do your repairs. Make sure your company culture demands doing it right the first time.
Here are some common examples of defective, negligent or even deceptive work may lead to a lawsuit:
- Performing the wrong procedure or repair.
- Failing to notice major repairs that need to be done. Be sure to do thorough inspections and document everything in your reports to the client.
- Causing damage to the engine or other parts during the work. Be sure to also clean up any scraps, debris, dirty fluids, or other foreign objects during the repair that could cause mechanical or electrical problems later if left in the engine compartment.
- Failure to fully repair worn or broken parts.
- Installing the wrong replacement part. Be careful to never install "junkyard," "knock-off" or "after-market" parts instead of those provided by the manufacturer.
- Modifying any parts so that the car is illegal to operate on public roads.
- Using inferior paint or replacement body parts.
- Not preparing the paint surface properly, causing the paint to bubble, peel, fish eye, etc.
- Scratching body paint while cleaning or working on another part of the car.
Property exposure: Many of the paints, lubricants, oils, degreasers, and solvents that you use every day are flammable. Ensure they are properly labeled, stored and separated in locked cabinets for safety. Make sure that any welding is done by a professionally trained technician that will work safely so as to avoid fires or explosions. Install security systems and cameras to protect your clients' cars after hours while they are in your shop.
Products liability exposure: What if the parts you install malfunction or are recalled? Do you currently have a check-off procedure in place before returning the car to the customer to ensure that everything is working safely and properly?
Premises liability exposure: Do you have clients that come to see you at your office location? Make sure that all snow and ice is cleaned from your sidewalks and parking lots. Train employees to spot and clean up spills and leaks immediately.
Environmental impairment exposures: Many of the paints and solvents you use may require ventilated paint booths to avoid EPA fines. Dispose of used lubricants, oils, degreasers, solvents and batteries in the proper manner to avoid leakage or contamination.
Automobile exposures: Do you have them picking up parts at the supply house? Check DMV records to make sure you only hire and authorize safe drivers to use company vehicles.
Do you offer car rentals to clients that have to wait until their automobile is repaired? Be sure to keep a copy of the renter's driver's license and proof of insurance. Use a rental contract that explicitly says that unlicensed or minor drivers are not permitted.
Garagekeepers exposure: Do you have employees moving cars around the parking lot and shop? Do you work at other body shops and repair shops? A garagekeepers policy will protect you from any damage that happens while the customer's car is in your care, custody and control. Keep all customer keys in a locked cabinet.
Crime liability: Employee dishonesty can be in regards to social security numbers and credit card information. Smart business owners take the time to do background checks before hiring and permitting any employee on the clients' premises.
Workers compensation exposures: Ensure that workers use proper eye protection and masks to prevent exposure to chemicals, paints and solvents. Ensure that employees are trained to work safely to avoid back strain.
Minimum recommended insurance for Auto Detailing, Paintless Dent Removal, Auto Body Shops and Car Repair Shops to carry:
- Business Owners policy
- Business Income
- Business Personal Property
- Employee Dishonesty
- Money and Securities
- Accounts Receivable
- Goods In Transit
- Valuable Papers and Records
- General Liability
- Employee Benefits Liability
- Environmental Impairment
- Business Automobile Liability and Physical Damage
- Commercial Umbrella Liability
- Hired and Nonownership Auto Liability
- Workers Compensation