This is What Happens If a Mechanic is Injured in Your Auto Shop

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This is What Happens If a Mechanic is Injured in Your Auto Shop

By Zuma Insurance Services | April 25, 2018



There are a lot of great things about running your own auto repair shop. You provide an important service along with important job opportunities for mechanics that work for you. But as a garage, it is important that you get the auto repair shop insurance that will best serve your own interests as well as those of your mechanics and customers.

Auto Repair Shop Insurance to Cover Common Problems

This is What Happens If a Mechanic is Injured in Your Auto Shop

While getting an auto repair shop going can be challenging and expensive. It is not uncommon for start-up costs to be in excess of $50,000. it is important to save a place in the budget to cover insurance costs for the auto repair shop.

Customer Injury

One of the first things many people think of when obtaining insurance for auto repair shops is keeping a customer safe from injury while they are in a mechanic’s workspace. When you are working to fix a vehicle, you may need to keep tools close at hand. With general liability insurance in your auto shop, your repair shop is protected against most third party bodily injuries

Damages From Fire

Garages are more susceptible to potential fires than standard office buildings, and with vehicles inside full of gasoline and other flammables, damages at an auto repair garage can quickly become extensive. A Business Owners Policy is needed to help your business recover from any loss sustained and help you back on your feet.

Having the Right Auto Repair Insurance Plan to Cover Employees

Following the Labor Laws

One of the biggest challenges for many garage owners comes from following California Labor Laws. Possible infractions and/or fines can result from

  • Misclassifying employees as independent contractors,
  • Not properly paying out overtime, or paying less than minimum wage,
  • Violating health and safety rules,
  • Not having proper workers’ compensation insurance.

Employees Injuries

With the big demand for auto repair, all mechanics and auto repair shop owners are at risk. Unfortunately, employees getting hurt is something that happens. That is why workers compensation insurance is an important component of any garage’s business insurance plan.

Insurance Coverage Challenges

This is What Happens If a Mechanic is Injured in Your Auto Shop

While there are many types of general business insurance types that may be beneficial to an auto repair shop, there are also types of recommended coverages that are specifically for garages or similar businesses, and what your business does specifically will be considered as you seek out an auto repair shop insurance quote. Two of the most notable, and commonly confused are

  • Garage Liability insurance, which covers damage done by a customer’s vehicle to persons or property while it is in the custody of a garage
  • Garage Keepers insurance provides coverage If the customer’s vehicle is damaged by an employee or representative from the garage or repair shop

Garagekeepers coverage isn’t required to operate, but paying for damage that would have been covered can be devastating to your business. Even mobile auto shops pose a risk because damage can still occur while a vehicle is in a mechanic’s care or custody.

Garagekeepers coverage has a number of options, including

  • Legal Liability – damage is caused due to the mechanic’s mistake or negligence
  • Direct Primary – Covers damage that happens despite no obvious negligence, such as weather damage
  • Direct Excess – the option of obtaining extra coverage as an extension of direct primary

While many auto repair mechanics are very gifted in what they do, those gifts don’t always translate to finding just the right combination of coverage options when they are shopping for auto repair shop insurance. At Zuma , we can help you determine which types of insurance are most crucial as you are getting your business off the ground, or even as you expand your staff or service capabilities.

Takeaways

  • Starting and running an auto repair shop can be expensive, but insurance should be a top priority
  • Not classifying or paying employees according to labor laws can result in serious consequences
  • Protecting employees through strong workers compensation insurance can strengthen your business

Auto shops pose many risks that aren’t present in other types of businesses, and business owners need to make sure their staff and customers have the protection they need. At Zuma in Montebello, California, we will listen to what is going on with your business in order to help you find the right combination of products to help you thrive. To learn more about what we have to offer, contact us to obtain your auto repair shop insurance quote.