The more vehicles that are registered, the more demand there will be for maintenance and repair services. But as an auto repair shop owner, one must be aware of the risks to overcome the challenges effectively.
The auto-servicing industry is subject to several risks. From property damages (in this case, the vehicles) to liability risks, running an auto repair business is quite challenging. Besides, the job of a mechanic can be life-threatening at times. About 13,000 mechanics are injured on the job, according to the Bureau of Labor Statistics. Taking adequate measures to reduce the risk is essential.
Can insurance help these garage owners lower the risks of running an automotive repair business? In short, yes! Not only that but also an extensive knowledge of insurance will help them offer maximum satisfaction to the customers.
Of course, garages are also beneficiaries of the insurance policies their customers take out since those auto insurance policies often pay for repair and maintenance.
So, what should the auto service garages know about insurance? Scroll on!
What types of repairs are covered by vehicle insurance?
Many insurance policies offer extended protection to vehicle owners for damage repairs. As an auto-servicing professional, you should know where each applies to ensure you get adequately compensated for the services you deliver.
- Liability insurance – This insurance covers the damages to a car that has been hit by the insurance owner. From a simple dent to massive damage, liability insurance saves the vehicle owners from paying the repair expenses from their pockets and the insurance pays the garage.
- Collision coverage – When an insured driver hits another object on his way, whether it is another vehicle, or an inanimate object, this insurance covers for the repairs. However, it excludes damages due to natural objects, like hail or an animal.
- Comprehensive coverage – Where the collision coverage ends, the comprehensive coverage begins. It goes the extra mile to cover damages caused by anything, apart from another car. For example, if the vehicle gets damaged by a severe hailstorm, or a tree falling on it, the comprehensive coverage will pay for the repair costs.
Understanding the details and the differences among these insurance products will help you deliver outstanding services to your customers (while still being sure of being paid).
Worker’s compensation for auto-servicing professionals
Now, let us turn to how you may protect your employees at the service station with the right insurance. As you know, no amount of protection is enough to prevent unfortunate incidents. Hence, it is better to stay prepared by purchasing the right insurance cover.
Worker’s compensation insurance can help auto garage owners cover immediate and ongoing medical expenses and partial loss of wages during accidents. It will also help cover legal fees and settlement costs in case the injured worker sues his/her employer. The statutory requirements for worker’s compensation insurance differ from one state to another. While in New York, all gas stations are mandated to have all their full and part-time workers insured, some other states make it essential for stations employing five or more workers. You need to ask the insurer about your state’s regulations before purchasing cover.
What is car repair insurance?
Another type of insurance that the garage owner must be aware of is car repair insurance. Popularly known as the “mechanical breakdown insurance”, it covers the costs of mechanical or electrical repairs in a vehicle. From air-conditioning, heating, and cooling systems to engine repairs, exhaust, and fuel, all are covered by this insurance. However, some routine maintenance and repairs, like accidental damages, regular wear, rust, or corrosion-related damages are excluded from the policy.
Garage liability and Garage Keepers insurance – What is it?
It is special coverage for the automotive industry, including small businesses, like automobile dealers, parking lot operators, auto-service stations, and repair shops. It helps cover the expenses for property damages and physical injuries while providing services but it is important to speak with your professional since you should make sure that you have garage liability and garage keepers coverage in place.
As an umbrella policy, it covers all the risks of regular operations. As an additional coverage to the basic business insurance, it helps extend cover for the specific risks an auto-garage owner may be facing.
From injuries to the vehicle owners by garage employee to vandalism of the car, everything will be covered by this insurance. However, it does not cover the tools, equipment, or any other property of the policyholder.
In the simplest terms, the garage liability insurance will cover the expenses that arise due to the operational mistakes of the garage employees.
As a garage owner, getting the right insurance cover is as important as understanding the customers’ insurance benefits. It will help enhance your operational efficiency. Hence, when you sit with the insurer to discuss your business insurance policy, make sure you know what you are getting into. This will help you offer the best services to your customers and stay protected.