What is commercial/garage Insurance?
So you’re a new owner of an auto repair garage – congratulations! There are so many things to consider as you get your business set up and operating. Don’t let the stress of being properly covered slow you down. Today, we’re sharing what we know about Garage and Commercial Auto Insurance.
There are a variety of things you need to consider in order to properly protect your business, from property coverage including your building and contents to business interruption, equipment breakdown, commercial general liability (CGL), and even cyber insurance coverage.
At McFarlan Rowlands, our experienced Account Executives will customize your policy with the proper coverage depending on your needs.
Key types of insurance coverage that can help you understand your policy include:
General Liability: How much insurance should a garage carry? Our sales specialists will meet with you to understand your business and then make recommendations for the amount of liability your garage should have. There are various factors that could impact your decision, for example you may be leasing a property and the landlord requires that you carry a specific amount of liability coverage based on your lease agreement.
Contents: From tools to equipment, your insurance broker will need to know what you have in your garage and the approximate value of each, so they can obtain the proper coverage and fair and competitive pricing.
Business Interruption: Called “BI” in insurance lingo, this coverage provides for loss of income while your business is shut down following an insured loss such as a fire. It is important to know what your loss of profits would be if your business was shut down for repairs as this coverage would continue to pay you for your loss of profits while repairs are completed.
Cyber Insurance Coverage: Every garage has cyber exposure. It might not be the first thing you think about when needing insurance, but if you accept credit card payments or store any information about your customers on a computer database, you have an exposure risk that you could be held liable for by your customers if that information were to be released.
Additional coverage that you should know about:
There are a number of additional coverages that should be considered in your package as well such as flood, quake, sewer backup, debris removal, accounts receivable, valuable papers, and crime coverages to name a few.
There are also some types of coverage that are unique to repair garages. This includes coverage for your employees’ tools and you’re legal liability for customer’s automobiles.
Pollution is also a concern for mechanics garages. Consider new and used oil, paint and antifreeze, oil tanks and so on. Every repair garage has pollutants present which presents a risk in and of itself.
If you provide storage for your customers’ winter tires your Insurance Broker will also take
this into consideration in your policy package.