(888) 900 0205Mechanic Shop Business Insurance
When running a mechanic shop, having the right Mechanic Shop Business Insurance is essential to keep your business safe from unexpected financial burdens. This type of insurance covers the various risks associated with operating a mechanic shop, classified under NAICS code 811111. As a mechanic, you're responsible for diagnosing, repairing, and maintaining vehicles, which involves handling valuable equipment and vehicles. Mechanic Shop Business Insurance provides coverage for property damage, bodily injury, and other liabilities that could arise during the course of your business operations.
General Liability Insurance
Protects against third-party claims for bodily injury, property damage, and advertising injuries. It's fundamental for any business, including a mechanic shop.
Claim Example: A customer slips and falls on an oil spill in your shop, injuring their back. They file a lawsuit against your business for medical expenses and lost wages. General liability insurance would cover the legal fees and any settlements or judgments.
Tools and Equipment Coverage
Covers the loss or damage to tools and equipment that are essential to your work. This coverage is crucial as it ensures you can replace or repair vital tools without significant financial strain.
Claim Example: A fire breaks out in your shop, damaging or destroying essential diagnostic tools and equipment. This coverage would pay for the replacement or repair of the damaged tools, allowing you to resume operations quickly.
Hired and Non-Owned Auto Coverage
Provides liability coverage for vehicles that your business rents (hired) or uses but doesn’t own (non-owned). This is especially important if employees use their vehicles for business purposes.
Claim Example: An employee runs an errand using their personal vehicle for business purposes and gets into an accident. The other driver sues your business for damages. Hired and non-owned auto coverage would handle the claim, protecting your business from financial loss.
Garage Keepers Coverage
Protects your customers' vehicles while they are in your care, custody, or control, such as during repairs or storage.
Claim Example: While a customer's car is in your care for repairs, it's stolen from your lot. The customer demands compensation for their vehicle. Garage keepers coverage would pay for the value of the stolen vehicle, protecting your business from out-of-pocket costs.
Building Coverage
Insures the physical structure of your shop against risks like fire, theft, or natural disasters. If you own the building, this is a must-have to protect your investment.
Claim Example: While a customer's car is in your care for repairs, it's stolen from your lot. The customer demands compensation for their vehicle. Garage keepers coverage would pay for the value of the stolen vehicle, protecting your business from out-of-pocket costs.
Workers' Compensation Insurance
Required in most states, this provides coverage for medical expenses and lost wages if an employee is injured on the job. It’s critical to protect both your employees and your business from potential lawsuits.
Claim Example: An employee suffers a hand injury while using a piece of machinery. They need medical treatment and are unable to work for several weeks. Workers' compensation would cover their medical expenses and a portion of their lost wages, as well as protect your business from potential lawsuits related to the injury.
Excess Liability Insurance (Umbrella Insurance)
Provides additional coverage beyond the limits of your other liability policies. This can be vital in protecting your business from large, unexpected claims that could otherwise exceed your standard policy limits.
Claim Example: A catastrophic accident occurs in your shop, resulting in multiple severe injuries. The resulting lawsuit and settlements exceed the limits of your general liability policy. Excess liability insurance would cover the additional costs, ensuring your business isn't financially devastated by the claim.