General Liability Insurance For Mechanic Shops
General liability is an important type of business insurance coverage that your auto body and repair shop should have. This auto shop insurance protects your company if something happens to either your customer’s or their property. For example, if a customer is injured while in your shop, general liability will cover the expenses. If a customer’s vehicle gets damaged while in your repair shop, general liability will pay for those damages.
General liability also provides advertising and product liability protection. If your auto shop prints an advertisement that harms a customer in some way, general liability takes care of those damages. The same applies to products. If you sell a certain type of engine oil enhancer that is later found to be damaging to customer’s engines, general liability covers your customer’s losses.
Business Owners Policy (Bop)
A business owners insurance policy (BOP) includes general liability and property coverage for your business property and assets.
On the property side, a BOP will protect you from losses if something happens to your physical business structures or the contents inside. For example if your auto body repair shop catches on fire, business owners policy would pay the costs of rebuilding your shop. It would also cover the cost of replacing damaged and destroyed equipment such as your power tools, compressor, car lifts and other specialized business equipment.
A business owners policy also protects you from the loss of intangible business assets. If your auto repair shop accepts cash and checks for payment and those accounts receivable funds are lost in a fire, a BOP will cover the financial loss. If you keep customer warranties in paper or digital form and those are damaged, a BOP will cover the cost of repair, reconstruction or replacement.