Whether you sell trucks or have a car wash, your vehicle service needs insurance coverage. The automotive world has a lot to offer. Today’s business owners are thriving, making money and staying protected.
To stay protected, you need to make sure you have these four critical areas of protection.
Option One: Lost Revenue Coverage For Business Insurance
Lost revenue coverage is often included in a standard business owners policy (or BOP). Some policies call this business interruption coverage. If your dealership’s vehicles sustain damage, a lost revenue coverage policy might protect you. Lost revenue coverage generally does the following:
- Protects revenue during a closure
- Covers fixed property expenses, like utility costs
- Covers temporary location operating costs
The Insurance Information Institute considers lost revenue coverage a vital component of any business. This reinforces the need that most automotive businesses have for strong protection. Their products, being generally outside, can be easily damaged. That results in lost business hours.
Option Two: Products and Completed Operations Coverage
This type of liability insurance covers insured contractors against third-party claims. If you’ve hired towing providers, maintenance men or similar workers, you’ll need this protection.
If contractors cause injuries or property damage, this policy can usually protect you. The policy also covers liabilities arising from your business’s products and services. While a general business insurance policy might have this coverage, double-check with your provider. They’ll help you get coverage.
Option Three: Equipment Breakdown Coverage
Most business insurance plans include equipment breakdown coverage. Still, it’s a good idea to ask your provider what equipment the policy will cover. Often, policies will cover any losses incurred because of electrical or mechanical breakdowns in the business. Nevertheless, some policies won’t cover all equipment. Given that auto businesses often use specialty equipment, you might need tailored coverage.
Whether you sell cars, run a towing service or clean vehicles, equipment breakdown coverage can protect you from lost revenue. It can also prevent lost service hours.
Option Four: Garagekeepers Coverage
Garagekeepers coverage is an optional business insurance policy. If your auto service business has a garage, you probably need this coverage. The policy will protect you during the damage, or loss, of a customer’s automobile.
If a customer leaves their vehicle in your care, control or custody, the policy acts as a shield. This coverage protects the insured whenever they do the following inside the garage:
- Attend vehicles
- Repair vehicles
- Service vehicles
- Park vehicles
- Store vehicles
In other words, accidental damage to a vehicle likely won’t be your responsibility to pay for.
At the end of the day, your auto service business needs protection like any other business. If you’re getting a business insurance policy, make sure it protects your specific line of work.
FAQ’s About the Best Business Insurance for Auto Service Providers
What types of insurance should auto service providers consider?
Auto service providers should consider liability insurance, property insurance, workers’ compensation insurance, and commercial auto insurance.
What is liability insurance?
Liability insurance protects auto service providers from legal claims made by customers or third parties for property damage or bodily injury caused by the business.
What is property insurance?
Property insurance provides coverage for damage to the business’s physical property, such as the building, equipment, and inventory.
What is workers’ compensation insurance?
Workers’ compensation insurance provides benefits to employees who are injured or become ill due to work-related activities.
Why is commercial auto insurance important for auto service providers?
Commercial auto insurance provides coverage for vehicles used for business purposes, such as customer shuttle services or employee transportation.
What are the benefits of having insurance for auto service providers?
Insurance can help protect the business from financial losses due to unexpected events, such as accidents, natural disasters, or legal claims.
How much insurance coverage do auto service providers need?
The amount of insurance coverage needed depends on the size and type of business, as well as the risks associated with the industry.
Can auto service providers bundle insurance policies?
Yes, many insurance providers offer bundle packages that combine several types of insurance into one policy, which can be more cost-effective for the business.
How can auto service providers find the best insurance provider?
Auto service providers can research and compare different insurance providers to find the one that offers the best coverage and rates for their business.
What should auto service providers consider when choosing an insurance provider?
Auto service providers should consider factors such as the provider’s reputation, financial stability, customer service, and coverage options when choosing an insurance provider.
How much does business insurance for auto service providers typically cost?
The cost of business insurance for auto service providers can vary depending on several factors, such as the size of the business, the type of services offered, and the location of the business. On average, auto service providers can expect to pay between $1,000 and $3,000 per year for business insurance coverage. However, this cost can be higher or lower depending on the specific needs of the business.
What factors should I consider when choosing business insurance for my auto service provider?
When choosing business insurance for your auto service provider, there are several factors to consider. First, you should assess the risks associated with your business and determine the type of coverage you need. This may include general liability insurance, commercial property insurance, workers’ compensation insurance, and commercial auto insurance. You should also consider the financial stability and reputation of the insurance company, as well as their customer service and claims handling process.
How can I find the best insurance company for my auto service provider business?
To find the best insurance company for your auto service provider business, you should research and compare multiple insurance providers. Look for companies that specialize in providing insurance for auto service providers and have a strong reputation in the industry. You should also consider the level of coverage and pricing offered by each company, as well as their customer service and claims handling process. It may be helpful to read reviews and ask for recommendations from other business owners in the industry.