Service Repair Shop Insurance

Ohio residents rely on you to keep their automobiles operational for their daily commute. As the owner of an Auto Service Shop, you face unique risks. You must consider many factors when running an auto repair shop, such as your assets, customers’ cars, and the safety of others. You’re a bit of an expert in dealing with ‘unexpected accidents.’ Auto mechanics insurance, also known as garage coverage or “garage keepers” insurance, is an essential coverage tailored to your business needs.

Let’s explore what auto mechanics insurance entails and how it helps protect your operations.

Types of coverage to consider as an Auto Service Shop:

Auto service shops require foundational coverage such as commercial property insurance, business interruption coverage, and commercial general liability insurance. However, they may also require additional specialized coverage tailored to their autobody repair shops. A comprehensive insurance package for auto mechanics typically includes the following components:

Commercial Property Insurance:

This coverage protects your business location and its contents from damage caused by fire, storms, natural disasters, theft, or vandalism. Your primary building, secondary structures, and business personal property should be considered. Additional insurance, such as equipment breakdown coverage, may be necessary for machinery and equipment.

Garage Liability Insurance:

Garage liability insurance safeguards your business in case of incidents while handling customers’ vehicles. It covers situations where the vehicle owner lacks liability coverage for their car or if any damage occurs to the customer’s vehicle during your garage’s operations, such as accidents during test drives.

General Liability Insurance:

Commercial General Liability insurance (CGL) covers bodily injury or property damage claims resulting from your business operations. However, liability related to garage operations requires special auto mechanic liability coverage.

Product and Completed Operations Liability:

This coverage protects you from claims arising from services you’ve provided that later lead to issues. For example, if a repair you made leads to a malfunction, this coverage can help cover the costs.

Garage Keepers Insurance:

Garage keepers insurance covers damage to customers’ vehicles while under your care, such as during test drives or in case of theft or fire. Unlike garage liability coverage, it specifically pertains to the physical vehicles in your possession.

Business Auto Policy:

This is needed for any company-owned vehicles.

Auto Service Shop insurance is tailored to address the unique risks and challenges of running a service shop. It safeguards your business, assets, employees and customers, allowing you to focus on caring for cars, not worrying about the unexpected.

Types of service garages we work with:

  • Autobody Repair
  • Oil Change Shops
  • Auto Service Repair Shops
  • Truck Repair Facilities
  • General Service Garages
  • Window Tinting Operations
  • Custom Accessory Installers

There are additional coverage options that could benefit your auto service business. These include business interruption insurance, commercial vehicle insurance, equipment breakdown insurance, workers’ compensation insurance, business income insurance, cyber liability insurance, commercial umbrella insurance, and mechanics professional liability.

Professional Liability for Mechanics

Mechanics’ professional liability is a crucial addition to your coverage. Accidents happen, and even the most skilled mechanics may make errors. This coverage is designed to protect you in case improper repairs, faulty parts, or incorrect installations result in accidents or damages to customers’ vehicles.

Other Considerations:

Running an auto repair shop involves inherent risks due to heavy machinery, equipment, and vehicles. When reviewing your auto mechanics insurance policy, the Hitchings Insurance team will work to ensure you have sufficient coverage for all aspects of your business, including its full replacement cost. Additionally, assess your liability limits, considering potential lawsuits that can be expensive to defend against.

The total value of customer vehicles in your possession at any given time should be well understood, as this will impact the Garage Keepers insurance limits you need.

What does service repair shop coverage cost?

The cost of auto mechanics insurance varies depending on several factors, such as location, the number of employees, the size and scope of your garage, inventory levels, insurance history, past lawsuits, and coverage options. Small shops may find comprehensive plans starting around $3,500 per year, while larger operations with extensive inventory and commercial autos could pay over $50,000 per year.

To determine the best coverage and premiums for your business, reach out to licensed, experienced agents like those at Hitchings Insurance. They can guide you through your options and provide personalized assistance based on your circumstances.

Tired of talking to a computer to get insurance?

Give us a call and speak with one of our ‘people first’ agents.