Garage liability coverage goes above and beyond what the usual business policy covers.
Owning your own garage can be a very lucrative business, but auto repair shop insurance can make the difference in stopping one incident from shutting the whole thing down. This liability coverage is typically considered to be a necessity for garages of all sizes.
In fact, garage liability insurance is often carried by tow truck drivers, auto dealerships and even service stations.
The reason is that auto repair shop insurance provides specialized protection for business owners working with cars. It expands beyond traditional business liability insurance to cover the operations and employees of a mechanic.
The primary coverage it provides is in the form of general liability insurance. This is the type with which most business owners are familiar. It covers against damage or theft of machinery as well as bodily injury. That said, it takes into consideration the type of machinery, tools and other factors involved in running your own garage.
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Auto repair shop insurance is less expensive than many mechanics realize, making it accessible to most.
The average annual cost of garage liability insurance is $300 to $1,000 per year. The specific premium depends on many different factors. These can include everything from the size of your operation to the types of equipment to be protected and even the types of cars you service and repair. Location of the garage will also often play a role in the calculation of the final total.
Many providers offer garage liability coverage for small businesses, making it easy to get started with online quotes. That said, if you have any specific questions about coverage, it can be worth your while to speak with an insurance agent with experience in this type of small business coverage.
The additional assistance of an insurance expert can be helpful as there are often risks that need covering but that many small business owners don’t realize exist. This coverage isn’t just a matter of covering the garage facilities against fire, theft, flood and other more obvious risks. It’s also important to consider the types of legal fees that could arise if a customer slips, falls and injures themselves on your premises or if their property – such as a smartphone, computer or other expensive possessions aside from the vehicle – are damaged.
Auto repair shop insurance may come with a slightly higher cost than standard general liability insurance, but that is because it covers the risks these business owners face in addition to the general need, including tools and contaminants among others. Small shops usually begin with $1 million in liability coverage per occurrence.