Do you want to open a car repair shop but you are concerned about the risks? If YES, here is how much it cost to get liability insurance for an auto repair business.
If you run an auto repair shop, auto dealership, gas station, or tow service, you will have to obtain a specific type liability insurance plan that helps insure and financially protect vehicles kept and stored on your site: garage liability insurance.
Garage liability, also known as repair shop insurance, is a combination of a General Liability Insurance plan and a commercial auto policy. The major coverage type is general liability insurance, which protects third – party bodily injury and damage or theft of machinery or vehicles on your premises.
Note that a good garage liability insurance policy with enough coverage will include general liability, commercial auto for garage businesses, and garage keeper’s legal liability. The main aim of garage liability is to offer you peace of mind and protect the vehicles in your care.
Vehicles may include cars, trucks, bikes and many other kinds of equipment and machinery that are stored on-site. However, this policy coverage will depend on what kind of business you run. If you are simply storing vehicles on-site, your policy will be different from someone who is actively repairing vehicles.
If you own an auto repair shop or garage, then obtaining the right business insurance coverage makes a lot of sense. Just one lawsuit can negatively affect your bottom line and leave you holding the financial bag for monetary awards. As a foundational piece of insurance, liability is important and necessary.
However, while liability insurance covers injuries and third – party property damage, it will not cover all of the scenarios that may befall your business. For all of the things your basic garage liability insurance doesn’t cover, there are other insurance policies that can help you fully protect your business. Garage liability is the foundation, but once you’ve started with that policy it’s easy to add others.
Cost of Auto Repair Shop Liability Insurance
As with all insurance policies, the cost of your auto repair shop liability insurance will largely be determined by the type of auto repair shop you run. Bigger repair shops with more places and vehicles to insure will pay more. Nonetheless, garage liability insurance is not so very expensive and the cost should be considered part of your company’s risk management plan.
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy. A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
The average price of a standard ,000,000/,000,000 General Liability Insurance policy for small auto repair and service businesses in the united states ranges from to per month based on location, size, payroll, sales and experience.
The average auto repair shop in America spends $400 – $700 per year for $1 million in general liability coverage. However, just like it was stated above, several factors will determine the price of your policy. These include your Location, Deductible, and Number of employees, Per – occurrence limit, and General aggregate limit.
But it is very important you invest in coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it’s best to be proactive when it comes to protecting your assets. After all, you can’t buy insurance to cover a loss that has already occurred.
Although insurance won’t protect everything, certain exceptions may be written directly into your policy, and some perils may be entirely uninsurable. Be sure to discuss the scope of your policy in-depth with your agent to avoid being blindsided by holes in your coverage.
Insurance is so crucial to proper business function that both federal and state governments require businesses to carry them. Being properly insured also helps you protect your company by protecting it from government fines and penalties. Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen circumstances.
Small business insurance tend to protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury. Finding the right level of protection when you operate an auto repair shop is important to your success.
Working with a seasoned independent agent has its benefits, since your agent doesn’t work for a specific company and he can help you check the rates available with several big insurance companies at once. This ensures you get the best deal on your coverage without cutting corners.
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