Insurance for Automotive Body Shops

February 13, 2024
Types of insurance for automotive body shops
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Automotive body shops typically require several types of insurance coverage to protect their business, employees, and customers. Here are some common types of insurance for automotive body shops:

  1. General Liability Insurance: This insurance provides coverage for bodily injury and property damage that may occur on the business premises or as a result of the business operations. It covers legal costs and settlements if the shop is sued for injuries or property damage.

  2. Property Insurance: Property insurance protects the building, equipment, tools, and inventory owned by the automotive body shop. It provides coverage in case of fire, theft, vandalism, or other covered perils.

  3. Business Interruption Insurance: This insurance helps cover lost income and expenses if the body shop is unable to operate due to a covered event, such as a fire or natural disaster. It can help with rent, salaries, and other ongoing expenses during the downtime.

  4. Workers' Compensation Insurance: Required in most states, workers' compensation insurance provides coverage for medical expenses and lost wages for employees who are injured or become ill on the job. It also protects the business from being sued by employees for workplace injuries.

  5. Commercial Auto Insurance: If the automotive body shop owns vehicles used for business purposes, such as customer pick-up and delivery, commercial auto insurance is necessary. It covers vehicles in case of accidents, theft, or damage.

  6. Garagekeepers Insurance: This insurance provides coverage for customer vehicles while they are in the care, custody, and control of the automotive body shop. It covers damages that may occur to customer vehicles during repair or storage.

  7. Professional Liability Insurance (Errors & Omissions Insurance): Also known as E&O insurance, this coverage protects the body shop from claims of negligence or mistakes in the repair work. It covers legal fees and settlements if a customer sues for damages resulting from errors or omissions.

  8. Cyber Liability Insurance: In an increasingly digital world, cyber liability insurance can protect the body shop from losses resulting from data breaches, cyberattacks, or other cyber incidents that compromise customer or business information.

  9. Umbrella Liability Insurance: Umbrella insurance provides additional liability coverage above the limits of other primary liability policies, such as general liability or auto liability insurance. It offers an extra layer of protection against catastrophic losses or large lawsuits.

It's essential for automotive body shop owners to consult with McDaniel Insurance who specializes in commercial insurance to tailor coverage to their specific needs and risks. Contact Blake Shelton at 502.655.7000 or Blakeshelton@mcdanielins.com to discuss insurance for your body shop.