Mechanic Shop Business Insurance

If you operate a mechanic shop, you need to work out a few details in order to protect your business. One of these is having the right mechanic shop insurance policy in place. After all, thanks to the recovering economy, the auto mechanics industry is set to see growth over the next five years. You need to make sure you’re ready for the increase in business, and mechanic shop insurance can help.

General Liability

Property Coverage

Auto Insurance

Workers Compensation

General Liability for Mechanic Shops

When you’re dealing with multiple vehicles and heavy-duty equipment, there is always a chance of something going wrong. This might include a mechanic making a mistake when fixing a car, leaving you liable for damages to the vehicle. In addition, customers might get hurt while on the premises, such as by slipping on oil or tripping over auto repair tools. Even your shop itself runs the risk of being damaged by the cars or equipment inside of it, leading to expensive repairs. Regardless of the problem, you need to make sure you have a good mechanic shop insurance policy with general liability to avoid being held personally responsible for extra expenses.

Tools And Equipment Coverage

As talented as you and your employees might be when it comes to fixing cars, you can’t do much without the proper equipment. If you do not have the money to immediately repair or replace major tools in case of a loss or claim– such as car lifts, transmission jacks, and wheel balancers – you need to obtain mechanic shop insurance with sufficient tools and equipment coverage. Otherwise, you risk going out of business or at least closing temporarily while you try to get together the money for equipment repair or replacement. If you want to avoid losing profits just because some of your tools are out of commission, you need this coverage for your shop.

Garage Keeper Coverage

When you operate a mechanic shop, customers trust you to take care of their cars. So in the event that their cars are stolen, or perhaps damaged by fire, inclement weather, or vandalism, you’ll be held liable. This is why you need garage keeper coverage in your mechanic shop insurance policy. Take note that this is different from general liability coverage, which is mainly there in case a mechanic mistakenly damages a car while trying to repair it, not in case of vandalism or theft while cars await repairs in your shop. That’s why the typical mechanic shop insurance policy includes both types of coverage.

Auto Coverage For Mechanic Shops

This type of mechanic shop insurance coverage protects you financially in case you or an employee is involved in a car accident when driving for business purposes. So if you send an employee to buy tools for the shop or perform any other business-related errands, the auto coverage within your mechanic shop insurance policy will pay for any car repairs or medical treatment that is necessary as a result of an accident. In addition, the policy will cover your employees when they test drive a customer’s vehicle after the repairs are made.