Owning an auto shop is difficult enough with the endless stream of cars, equipment and employees hurrying about, but what really is cause for concern is insurance. Especially in today’s saturated insurance market, finding a quality company with the right coverage options can be a nightmare. Nobody wants to wake up to a huge lawsuit with mounting medical fees without having the proper insurance to bail you out- which is why insurance can ensure the stability of a company. Garage liability insurance, for example, is a type of insurance policy that covers auto shops in case of on site accidents/damage to employees or company owned equipment.
Despite the name, a wide assortment of business owners need garage liability insurance to save themselves from crippling legal battles. Any business that operates by taking care of cars in any fashion will need to purchase some form of garage liability insurance. These include but are not limited to:
- Auto Body Shops
- Detail Shops
- Performance Shops
- Service Stations
- Car Audio Shops
- Car Dealerships
Garage Liability Insurance will cover a large assortment of damages, but only garagekeeper’s insurance will cover individually owned property. Regardless, garage liability insurance will generally cover:
- Fire Damage
- Slip and Fall Accidents
- Off/On Site Collisions
Once you’ve highlighted the need for garagekeeper’s insurance, you’ll need to know what exactly to look for when purchasing a coverage option.
- Limits – This covers the maximum amount the insurance company will pay in the event something disastrous happens. The higher the maximum, the higher the premium.
- Deductible – Before the insurance group will agree to pay for damages incurred, you’ll have to pay a deductible for each vehicle affected. This is negotiable so make sure you set a value that you have the capability to pay.
- Past History – Each company operates differently, but premiums will fluctuate based on a variety of criteria. This not only includes deductibles and limits, but also past history, security protocol, and employee history.
So it doesn’t matter if you own an auto shop or a car dealership, shopping around for garage liability insurance is a must.