Garage Repair Shop Insurance
Garage insurance, also known as repair shop insurance or garage liability insurance, provides targeted coverage for businesses working in the automotive industry. While imperative for mechanics and auto repair shops, this insurance policy is also recommended for any businesses that work with, sell, or transport vehicles of any kind.
Who Is Garage Liability Coverage For?
Garage liability insurance is an umbrella policy that can be put in place to protect your automotive business from property damage or bodily injury claims related to working with, selling, or transporting vehicles. Mechanics, tow truck operators, auto glass installers, automotive repair specialists, service station and parking garage owners, valet drivers, detailing operators, emissions testers, vehicle painters, and more can all benefit from a garage liability policy.
While garage liability coverage is recommended for all businesses in the automotive industry, your policy will differ depending on the type of business you run and the specific service you provide.
What Does Garage Liability Insurance Cover?
Garage liability insurance is a liability-based policy, meaning it will protect you against any claims that result from the general liability risks that come with operating and owning an automotive business. Coverage includes bodily injury, product liability, and third-party property damage.
For example, if a customer were to injure themselves on your premises or you accidentally installed a faulty part in a customer’s vehicle resulting in damage to the customer or their car, your policy would cover medical bills and expenses, the cost of repairs, as well as any legal fees. Additionally, if a customer’s car or personal property were to be damaged while on your property, a garage liability policy would cover the cost of repairs or replacement.
How Much Does Garage Liability Insurance Cost?
Because working in an auto repair shop or generally working with vehicles can come with larger risks than the average business environment, garage policies can be pricier than general liability policies. Risk, however, is only one aspect that factors into the price of a garage liability policy. Some other factors include:
- What specific type of business you run
- Your annual revenue
- Number of employees
- Location
Dependening on these factors, a standard $1 million liability coverage policy can cost anywhere from $300 to $1000 annually.
Garage Liability Insurance vs. Garage Keeper Insurance
While often mistaken for each other, garage liability and garage keeper insurance are two disctin policies offering different, but complementary types of coverage. Garage liability insurance protects you against third-party claims of injuries or damages to property, while garage keeper insurance covers damages due to natural disasters, extreme weather, theft or attempted theft, and vandalism. Depending on your type of business, you may wish to bundle these policies.
For those working within the automotive industry, having garage liability insurance is of the utmost importance in order to be properly protected from the increased risks associated with the business of working with, selling, or transporting vehicles. You don’t want one unfortunate injury or accident to upset your livelihood or bankrupt your business. Call ISU Armac to take out a garage liability policy and protect your automotive business today.
