Auto repair shops need appropriate business insurance coverage to help provide financial protection against various risks they face in the day-to-day business.

Auto repair shops may be vulnerable to property damage due to fires, storms or criminal activity. They may also be held liable for third-party injuries or property damage on the shop’s property.

Insurance Coverage for Auto Repair Shops

Auto repair shops may need several types of insurance to help protect the business and its employees. Your agent may recommend the following coverages:

·        General liability insurance can help cover the repair shop for third-party claims of property damage or bodily injury that may arise from the shop’s operations.

·        Commercial property insurance can help cover the repair shop’s business property, including the building, tools and equipment, against loss or damage due to covered events such as storms or fire.

·        Business interruption insurance can help cover the repair shop for lost income and expenses if it must close temporarily due to a covered event, such as a natural disaster or fire.

·        Professional liability insurance can help cover the repair shop’s legal liability for errors or omissions made during regular business.

·        Equipment breakdown insurance can help cover the costs of replacing or repairing equipment that breaks down due to electrical or mechanical failure.

·        Garage keepers insurance can help provide coverage for customers’ vehicles while in the shop’s care.

·        Garage liability insurance adds property damage and bodily injury coverage not usually available with commercial liability insurance coverage.

·        Loss of income coverage can help cover regular bills if the shop must close to allow for repairs after a covered loss.

Should an Auto Repair Shop Buy a BOP?

Depending on the repair shop’s size, it may be eligible to purchase a business owners policy (BOP) which provides three main insurance policies at a discount. BOP coverage typically includes commercial property, general liability, and business interruption insurance.

Talk with your agent to determine whether a BOP is a good fit for your auto repair shop.

Do Alabama Auto Repair Shops Need Workers’ Compensation Coverage?

Yes, businesses in Alabama must carry workers’ compensation insurance if they have at least five employees, including temporary and part-time workers.

Workers’ compensation insurance helps provide medical and financial benefits for covered employees who are injured on the job.

Consult your insurance agent to determine whether your shop is required to purchase workers’ compensation insurance.

How to Get Business Insurance for an Auto Repair Shop

Auto repair shops face unique risks, so getting appropriate business insurance is crucial. An experienced agent can help you determine which policies may work best for your auto repair business.

Contact the small business insurance experts at Jean Deese Agency in Cullman, Alabama, to get started building an insurance plan for your auto repair shop.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.