Auto service and repair shop insurance is a type of insurance that provides protection for auto service and repair shop owners and their employees in the event of an accident or liability claim. This type of insurance covers damages, losses, and legal fees that may arise from various incidents in the shop, such as vehicle collisions, faulty repairs, and employee negligence.
Auto service and repair shop insurance is essential to running a successful shop. Without it, a shop owner could face costly legal expenses and potential lawsuits if an accident or injury were to occur on their premises. Additionally, if a shop is not adequately insured, they may not be able to receive compensation if they suffer a financial loss due to an incident that occurred in their shop.
Who Needs Auto Service and Repair Shop Insurance?
Auto service and repair shop insurance is essential for any mechanic or service shop owner. Even if a shop has a low volume of business, it is still essential to have the right coverage in place. This is because any incident, no matter how small, could potentially result in a lawsuit or other financial losses.
In addition to auto service and repair shop owners, auto mechanics and other employees may also benefit from having the correct type of insurance. In the event of an accident or injury that occurs while an employee is on the job, they may be able to receive compensation for medical expenses and lost wages. This can be especially helpful for employees who are not covered by a health insurance plan or another form of financial protection.
Types of Auto Service and Repair Shop Insurance
When it comes to auto service and repair shop insurance, there are several types of coverage available:
- General liability insurance covers damages, losses, and legal fees that may arise from accidents or injuries that occur on the shop premises.
- Property/casualty insurance covers the costs associated with damage to the shop and its contents, including tools, equipment, and supplies.
- Employee coverage provides financial protection to employees in the event of an accident or injury that occurs while they are on the job.
- Business interruption insurance covers the costs associated with a business interruption due to an incident in the shop.
- Professional liability insurance covers the costs associated with negligence, product liability, and contractual liability.
How Much Does Auto Service and Repair Shop Insurance Cost?
The cost of auto service and repair shop insurance varies depending on the type of coverage, the size of the shop, and the amount of coverage needed and can range from a few hundred dollars to several thousand dollars per year.
Auto Service and Repair Shop Insurance Requirements
In order to obtain auto service and repair shop insurance, shop owners must meet certain requirements. These requirements may vary from one insurer to another, but typically include:
- Proof of shop ownership
- Evidence of financial responsibility
- A list of services offered
- A list of employees
- A list of insurance policies
- A detailed description of the shop premises
Additionally, shop owners must also provide proof of their shop’s safety standards, provide evidence of proper maintenance of the premises, and provide evidence of any necessary licenses.
Commercial Insurance And Business Industry Classification
- SIC CODE: Automotive Repair Shops: 7538 General Automotive Repair Shops, 7532 Top, Body, and Upholstery Repair Shops and Paint Shops, 7533 Automotive Exhaust System Repair Shops, 7534 Tire Retreading and Repair Shops, 7536 Automotive Glass Replacement Shops, 7537 Automotive Transmission Repair Shops, 7539 Automotive Repair Shops, Not Elsewhere Classified
- NAICS CODE: 811111 General Automotive Repair, 811112 Automotive Exhaust System Repair, 811113 Automotive Transmission Repair, 811118 Other Automotive Mechanical and Electrical Repair and Maintenance, 811121 Automotive Body, Paint and Interior Repair and Maintenance, 811122 Automotive Glass Replacement Shops, 811198 All Other Automotive Repair and Maintenance
- Suggested Workers Compensation Code(s): 8380 Automobile – Service or Repair Center & Drivers, 8393 Automobile – Body Repair & Drivers, 9516 Electronic Equipment – Installation, Service, or Repair – Shop and Outside & Drivers
Conclusion
Auto service and repair shop insurance is an essential part of running a successful shop. It provides protection for shop owners and their employees in the event of an accident or liability claim. Additionally, it can help to protect a shop’s assets and provide financial protection to employees who are injured while on the job.