As the owner or operating manager of an auto repair shop, you know that your establishment needs several types of insurance in order to be fully protected. This is mainly because no single policy covers everything. Instead, you need a combination of policies and riders to really get the job done.
Having so many policies makes it hard for your coverage to keep up with your needs. As times change, your needs will as well – but without regular tweaks, your policies will stay the same. This can lead to unexpected coverage gaps, the keeping of insurance that you no longer need, or both.
Here are some important steps you should take during this re-evaluation:
Most years, auto shops offer the same services as they did before. However, every so often, you may add or remove a service due to market conditions or other factors. When this happens, you might find that you need more insurance or that you can drop some.
Other changes are also worth noting. Did you buy or sell some garage equipment? If so, you’ll likely need to adjust the coverage you have against its loss or damage. The same goes for changes like building expansions, the installation or removal of active bays, and similar alterations.
As with all businesses, there are legal requirements for certain types of insurance. One of the most well-known is worker’s compensation, which covers your employees in case they get injured on the job. You may also need general liability insurance to cover your customers and their property. Depending on your location, more types of insurance may be mandated as well.
Most types of insurance specifically exclude certain conditions or events from coverage. Therefore, in order to be protected from financial liability, you may need to cobble together several different policies or add riders that make up for the excluded possibilities. Be sure to check off all of these details when assembling a package of auto repair shop insurance coverage policies.
Often, auto repair shop insurance companies offer discounts for meeting certain conditions. Some of these include how long you’ve been a customer, a record free of claims, various safety upgrades you’ve made, and more. If your policies don’t plainly talk about these, be sure to ask your agent. You may be in for some positive pricing adjustments.
If the finer details of auto repair shop insurance types are confusing to you, don’t hesitate to ask your agent for help. Agents must pass exams to be licensed, so they know about various coverage plans and their ins and outs. An agent will be glad to use that knowledge to assist you.
If you want to be sure you have the lowest possible auto repair shop insurance cost for the coverage you need, give us a call here at Zuma Insurance. We’ll be glad to discuss your needs and give you a quote.