Auto Repair Shop
Auto Repair Shop Insurance in Texas
Serving Cedar Park, Round Rock, Houston and surrounding areas
Why Do Auto Repair Shops Need Insurance?
The automotive industry faces unique risks compared to other small businesses. Customers’ vehicles can be accidentally damaged by an auto mechanic A customer’s car can accidentally be backed into another vehicle. One of your employees can get injured when working on a car. Automotive repair can be a dangerous job.
Because of these risks, auto repair shops need to get the proper shop insurance in place. If you’re working on someone’s car—whether in a home garage, leased, or owned location—you must protect your auto repair shop with the right liability insurance.
What Types of Insurance Are Available for Auto Repair Shops?
There are some basic insurance solutions and some specialty business insurance coverage(s)to consider:
- Garage Liability Insurance (also referred to as general liability insurance, mechanic insurance, or simply garage insurance): A garage insurance policy will cover the costs of third-party bodily injury or third-party property damage that occur in your auto shop.
- Garage Keepers Insurance: Garage keepers coverage offers protection in case a customer’s car is lost or damaged while under your care and control. This includes while it is in your shop or parked in your lot.
- Business Owners’ Policy – A business owner’s policy (BOP) usually combines general liability insurance, business property insurance, and business interruption insurance. Insurance companies usually offer BOPs to small business owners at a discounted rate (compared to purchasing each policy separately).
- Business Interruption Insurance (also referred to as Business Income Insurance): Business Interruption coverage helps cover lost income, operating expenses, payroll costs, taxes, and debt repayment if your business property is damaged or unsuitable to use for a certain length of time.
- Commercial Property Insurance – Property and equipment insurance protects your garage, expensive machinery, inventor, and more. Damage by fire, natural disasters, vandalism, or theft is usually covered. Additional options that should be considered include coverage for debris removal, pollutant clean-up, equipment breakdown, computer equipment, and boiler and machinery insurance.
- Workers’ Compensation Insurance – Workers’ compensation insurance can help cover missed wages, medical expenses, and ongoing medical care for an employee injury. The policy can also cover legal costs and settlements if an employee becomes ill, injured, or even dies from a work-related injury.
- Other Insurance to Protect Auto Repair Shops:
Tow Truck Insurance: This is a type of commercial auto insurance specifically written for tow vehicles. It should include ‘on-hook coverage’ to cover
accidents or mishaps while towing someone’s vehicle. If you are towing vehicles, tow truck insurance will cover liability and damage claims in
transit to the repair shop as well as bodily injury and property damage.
Equipment Breakdown Coverage: As an auto repair business owner you will need coverage for your tools. Equipment such as lifts and
compressors should have protection for replacement costs so that if a disaster happens you can get your equipment replaced and get your
business back on track again.
Employee Dishonesty Coverage: This protects your business from being liable for employee theft and/or fraudulent activity.
Cyber Liability Insurance: If you store client information (name, address, credit card information, etc.) you need to protect their personal
information from cyberattacks with cyber liability insurance.
Professional Liability Insurance: If a customer accuses you of faulty work, negligence, or undelivered services, this can be covered by professional
liability insurance.
Find the Policy That Fits Your Company
With over 30 years experience, Tom and the team at Dowd Insurance will carefully review your current insurance policies and your needs before researching the policies and carriers that best meet your expectations and budget. With numerous auto repair clients currently insured, the Dowd Insurance team uniquely understands the specific insurance needs for auto repair businesses.
To start building the right insurance policy for your auto repair business, contact us today.