Posted on May 17, 2014

Body Shop Insurance

Body shop insurance

Auto body shops and other automobile industry related companies deal with insurance companies on a daily basis. Since they accept insurance to pay for repair work on customer vehicles, they are very familiar with insurance requirements as it relates to customer covered autos.

When it comes to auto body shop insurance to protect the business operation and premises that is another story. Understanding the various types of coverage available for automobile service companies can be a challenge. The following types of insurance coverages are options that most body shops and auto service companies need to properly cover the business from potential liabilities associated with accidents, injuries and property damage claims.


Commercial Property & General Liability

General liability insurance protects auto companies from lawsuits by third parties. It covers accidents such as a customer that slip and falls on business premises and even damages related to customer's dissatisfaction with company product or service.

Auto dealers and service companies must obtain adequate levels of insurance to protect auto inventory that remains on business property. Customer auto coverage protects customer vehicles when they are in the care and custody of the business. Extended theft insurance provides false pretense protection meaning that should a company give a car over to someone because of a trick, scheme or purchase an auto from a seller without legal title, they are covered. This type of theft is not covered under standard property insurance policies.

Commercial property policies for automobile service companies also add protection for perils such as fire and theft. Property insurance will pay to repair or replace damaged or destroyed property. Many auto body shop policies will also include coverage for employee tools so that if they are lost or stolen, the insurance will pay to replace them.


Garage Liability

Garage liability insurance provides protection for companies that sell or repair motor vehicles. It covers owners and employees who drive customer cars for testing when being repaired and also for injuries to customers or visitors on business premises or off site. It also covers faulty repairs, work or parts. Other protective coverage with garage liability insurance is that it will cover any loss related to odometer issues and auto financing such as truth in lending or leasing practices.


Crime Insurance

Because money is handled frequently by auto industry employees, crime insurance is necessary for protecting business owners from embezzlement, stealing auto parts and bank deposit robbery.

Commercial general liability, property, garage liability and crime insurance are just a few of the vital insurance coverage needed by the automobile industry and body shops. Consult with an experienced insurance broker to learn more about customized insurance packages specifically designed to meet the needs of the auto industry.


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