Mechanic Shop Liability Insurance

Operated well, your mechanic shop can be quite lucrative through good times and bad. 90% of the US population owns one or more vehicles, and your mechanic shop can help keep them operating reliably and safely for years. As the owner of the mechanic shop, you have a lot of daily responsibilities to deal with. You have customers to sell services to, employees to keep motivated, inventory to track and many other things to manage. Keeping your company safe for customers and employees while protecting yourself from financial difficulties that can be caused when accidents happen is imperative. This can be accomplished with general liability insurance for mechanic shops.

Bodily Injury Coverage

Bodily injury coverage is part of your general liability insurance policy. It is designed to protect your customers and your mechanic shop if accidents happen that involve a customer. When customers sustain physical injuries at your company, or on premises where your company is conducting business operations, this section of your insurance will pay for that customer’s resulting medical costs.

Property Damage Coverage

General liability insurance for auto mechanic shops also protects you from accidents that cause damage to a customer’s property. When property damages happen, the customer may sue your company for the cost of the repairs. Property damages coverage pays for these expenses so that you don’t have to.

Products And Completed Operations Coverage

When you sell products to your customers, there is a small chance that one of the products you sell will cause harm because it is defective. After you have completed services, your customer may file a lawsuit against you for injuries or damages that they say were caused by something you did or didn’t do as part of the services you provided. Products and completed operations insurance is the section of your general liability insurance policy that protects you from these claims.

Personal And Advertising Injury

Personal and advertising injuries are claims that you caused non-physical and non-property related harm or damages. On the personal level for example, a supplier may claim that your company advertisements said false things about them.

Damage To Premises Rented To You

If you operate your mechanic shop from a leased or rented property, the owner of that property will require you to carry rental premises damage protection. This section of your liability insurance for mechanic shops provides protection for the structure and property directly if your company ever causes damages.

Medical Expense Limit

Auto Mechanic shops general liability insurance may include medical expense limit coverage. This portion of your insurance helps you to avoid larger lawsuits and legal claims about accidents and injuries in the future. If a customer has minor injuries and claims that your company is responsible, your medical expense limit protection can pay their bills even if you didn’t cause the injury.

Limits Of Liability Insurance

  • Each Occurrence – The each occurrence limit on your general liability insurance defines the maximum amount of monetary benefits that one person can be paid per incident or claim.
  • General Aggregate – The general aggregate limit on your general liability insurance policy is the total combined limit of coverage available to you, regardless of how many individual claims have been made.