If you own or manage an automotive garage, your business is exposed to a variety of potential risks. Make sure it’s well protected by getting these five types of insurance coverage that automotive garages need.
1. General Liability Coverage for Non-Vehicle Injuries
General liability coverage isn’t just for automotive garages, but it’s a coverage that every garage should have.
This coverage offers broad protection against multiple common risks, which include basic accidents that occur on company property and result in injury to a third party. Should a customer be injured in a common fall, general liability will pay any legal fees or medical costs that arise as a result.
While almost any business can face a liability claim related to an accident, general liability’s protections are especially important to automotive garages that bring customers into service bays to see their vehicles. There are often lots of tools and supplies in service bays that customers could trip over, and customers can sustain injuries in such a fall.
2. Garagekeepers Liability Coverage for Vehicle-Related Injuries
While general liability coverage protects against basic accidents that result in injury, it doesn’t extend protection to accidents that involve a vehicle. To protect against vehicle-related injury risks, automotive garages need garage liability coverage. Garage liability is so-named because it’s specifically for automotive garages and other businesses that move cars around.
Should an employee accidentally hit a customer as the employee moves a car in or out of a service bay, garagekeepers liability coverage will cover any injuries that result in the accident.
Garagekeepers liability won’t protect against injuries that occur in customer-customer accidents because those accidents aren’t part of normal business operations, but it will cover accidents that employees cause in the standard course of work.
3. Workers’ Compensation Coverage for Work-Related Injuries
While general and garagekeepers liability coverages insure against customer injuries, they don’t offer protection for injuries that workers sustain. For work-related injuries that employees might suffer, automotive garages need workers’ compensation coverage.
Workers’ compensation insures against on-the-job injuries, which mechanics at automotive garages are certainly at risk of sustaining. From basic falls and falling objects to smashed thumbs and vehicle accidents, any employee injury that occurs in the normal course of work falls under the domain of workers’ compensation.
4. Tow Truck Coverage for Wreckers
All automotive garages that have their own wrecker need to insure the truck with tow truck coverage. Every vehicle that’s driven on public roads needs to meet the applicable state’s minimum insurance requirements, and tow truck insurance both meets any such requirements and offers other protections.
In addition to the protections that a standard commercial auto insurance policy offers, tow truck insurance also provides on-hook towing protection. On-hook towing protection insures vehicles that aren’t owned by a garage while those vehicles are being towed. Without this protection, an automotive garage would be responsible for any damage to a vehicle that was on a tow truck.
Of course, garages that don’t have their own wrecker don’t need to carry tow truck coverage and can reduce their premiums some by eliminating it.
5. Commercial Property Coverage for Equipment and Tools
Regardless of whether an automotive garage owns its building or leases commercial space, commercial property coverage is another must-have protection. This coverage insures a business’s property, which for a garage may include the following:
- Parts and tires kept in stock
- Advanced equipment used for diagnostic purposes
- Handheld tools used in repairs
Furniture, electronic equipment, and even a coffee maker also receive protection from commercial property coverage.
If you need garagekeepers liability coverage and other insurance protection for an automotive garage, contact Family Insurance Centers.