What Type of Insurance is Needed for an Auto Body Shop?

While every business faces risks, an auto body shop has more unique risks than your run-of-the-mill office worries. Fortunately, there are specialized insurance policies available to offer more industry-specific protection for your auto repair business. Your independent insurance agent can go into greater detail after learning the specifics of your garage, but we’ve provided a general breakdown of common coverage options to give you an idea of the coverage that’s available.

• Property: Your garage has invested a good deal of money into the business’ physical location, including the building, signage, furniture, tools, machinery, computers, inventory and more. Property Insurance can offer the funds needed to replace these things if they’re damaged, lost or stolen by a covered event.

• Equipment Breakdown: If a power surge blows out some of your tools or you experience a mechanical breakdown on premises, it could cost a small fortune to fix. Equipment Breakdown coverage can provide the funds you need to repair these damages.

• General Liability: With tools and equipment around, it’s not unheard of for injuries to occur in auto body shops. If a customer (or other third party) does get hurt, General Liability Insurance can provide funds for their medical expenses, along with legal expenses you may incur.

• Garage Keepers Liability: While customers’ cars are temporarily in the possession of your garage, you’re responsible for any damages that occur. Garage Keepers Liability insurance offers protection against these circumstances.

• Commercial Auto: You will need protection for the shop’s vehicles, along with protection for the vehicles of customers as they’re test driven. Commercial Auto Insurance includes an array of coverage to meet state laws, and provide extra protection as desired.

• Business Interruption: If a covered loss temporarily halts business operations, you’ll still be responsible for paying the mortgage/rent, employee salaries, utilities and more, even without an incoming revenue stream. Business Interruption Insurance can help fund these ongoing expenses until operations are able to resume.

• Workers Compensation: If an employee is injured during the course of work, he or she might face expensive hospital bills. Workers Compensation Insurance helps fund medical expenses and lost wages until an employee is well enough to return to work.

Is your garage covered? Call JM Hamilton & Associates at 704-364-0833 for more information on Arizona auto body shop insurance.