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Auto Repair Shop Insurance

Tennessee Auto Repair Shop Insurance

With the price of new cars rising each year, many people are keeping their cars longer. This means that consumers need honest and reliable auto repair shops. However, auto shops have special needs for business insurance and it’s best to consult with an experienced insurance professional with significant training in risk management. Here is an example which demonstrates the importance of Auto Repair Shop Insurance.

Sam loved cars and everything about them. Ever since he was a small boy, he would play for hours with anything that had a set of wheels, and this love for cars only grew as Sam got older. Sam also loved to tinker with things and discover how they work. Becoming an auto mechanic was an easy decision when he graduated from high school in Jonesborough. Sam took the necessary training to be a certified auto technician and had no problem finding a good job with a au repair shop in Kingsport.

After 8 years as a mechanic, Sam decided to open his own auto repair shop. He found the perfect place for sale in Gray. Sam was a great mechanic but he was not well versed in garage keepers insurance and risk management issues so, he sought the services of a risk management professional who also was an independent insurance agent. Sam’s agent went over all of his current and future risk factors and helped him choose the perfect policy for his needs. Sam may have been able to find a less expensive policy online, but he wanted to make sure he had the right coverage to protect his financial future and his agent was able to save him a lot on premiums by checking with several top insurance companies.

Just four months after Sam went into business, his building was hit by a fierce storm which tore through Northeastern Tennessee one night. The wind and rain caused an enormous amount of damage. If Sam had went with a discounted policy he would not have received the benefits of flood insurance. Thankfully, his insurance paid for restoration services, repairs, and also reimbursed him for the three weeks of downtime, while repairs were made.

What is Auto Repair Shop Insurance?

Automotive shop insurance is business insurance, specifically designed to cover the hazards and risks associated with running an auto repair business. This prevents the shop owner from suffering major losses.

Who Should Take Out Garage Keepers Insurance?

If your business performs automotive related services, you should consider this kind of insurance. This includes the following businesses:

  • Brake shops
  • Transmission services
  • Automotive glass services
  • Auto body shops
  • Mechanic shops
  • Muffler shops
  • Oil change services
  • Auto upholstery shops
  • Auto restoration services
  • Car dealerships that perform repair work
  • Auto customizing services
  • Tire shops

What Coverage Does a Typical Auto Shop Insurance Provide?

Most auto shops will need these basic business insurance coverage items:

  • General Liability Insurance – this covers people injured on your premises and accidents involving your employees and customers
  • Commercial Property Insurance – hazard insurance for your building, structures, and it may also cover acts of vandalism.
  • Garage contents – protects your equipment, tools, and everything inside the shop from damage or theft.
  • Broad form property damages – while your customer’s cars are in your care you are responsible for them, and this coverage is designed to protect them from damage or theft.
  • Workman compensation – if your automotive business has 5 or more employees in Tennessee, you must provide this insurance.
  • On hook liability coverage – this protects the vehicles you tow.

Auto Repair Shop Coverage Options

A typical policy may not provide all the protection you need, and you might want to consider these coverage options:

  • Downtime or business interruption insurance – this covers losses you suffer when the shop is closed through no fault of your own.
  • Extra liability insurance – depending on the nature of your business, you may need more general liability coverage than normal.
  • Employer non owned liability insurance – if an employee uses his or her vehicle for your business, you need special liability insurance.
  • Garage liability (errors and omissions) – if one of your mechanic makes a mistake that ruins an expensive engine, this insurance will pay.

Who Can I Turn to for Auto Repair Shop Insurance?

When you want insurance for your auto repair shop, you need maximum coverage with the lowest possible premiums. That is why many garages and auto repair shop owners come to an independent insurance agency like Veritas Risk Management. We have people with extensive knowledge on the insurance needs of today’s automotive services.

When you get your garage keepers insurance through an independent agency, you can save a lot of money because we have policies from several top insurance companies. Plus, with Veritas Risk Management you do not need to come up with a large down payment to get your insurance started. You can often pay your premiums in 12 equal monthly installments.

Call the insurance experts at Veritas today at (423) 292-4142 to talk to one of our awesome team members about your unique risks and the unique coverage we offer to protect your business. Don’t have time to pick up the phone? Click on “Get a Quote,” fill out the short form, and one of our team members will contact you within one business day to complete your free, no-obligation quote!

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