When compared against other small business types, the automotive industry is one that faces a number of unique risks.
One such risk is the danger of working on cars, as employees can potentially get injured while working on vehicles. Another problem auto repair shops have to worry about is accidentally damaging a customer’s vehicle.
When factoring in these risks, it is essential to get your insurance coverage with a specialist focused on auto repair. To further demonstrate why this is the case, this article will take a closer look at the key reasons why your auto repair shop requires business insurance.
Protect against loss
As with any other business, insurance is necessary for your auto repair shop to protect against loss. If there’s no insurance in place, this can be particularly damaging if your shop has several vehicles on-site. This extra hazard could ramp up your costs significantly if you were left to pay the bills on your own.
Now you might not envision a scenario where you could lose everything in one fell swoop, but a fire in your garage has the potential to cause that type of damage. With specialist auto repair insurance, you know you’re not just covered for property-related damage but also for any vehicles in your shop.
A customer can end up in the wrong place
Even a standard retail store presents dangers that can cause harm to customers. Well, these dangers are multiplied when it comes to customers walking around your repair shop. Even if you and your employees are perfectly familiar with your garage and where everything is, this isn’t the case with your customers.
All it takes is for one misstep, one movement too close to some equipment for a customer to become injured. The last thing you want is to cover their ensuing medical bills. Without the right insurance in place, you could be left paying a $222,000 jury verdict like one car repair business did when a hydraulic lift injured a customer’s toe.
A customer contests the quality of the work done
From time to time, you’re going to come across a customer who disagrees with the work done on their vehicle or the quoted price. That’s the nature of operating an auto repair shop. However, what if they take their complaints further and decide to sue your business?
With the right liability coverage, defense and settlement costs can be covered – regardless of the verdict.
Protect against employee lawsuits
It’s not just customers that can threaten your business with lawsuits. Your employees can do the same if they’ve endured a workplace injury. Considering research conducted by the U.S. Bureau of Labor Statistics reveals automotive service technicians and mechanics are more likely to suffer from illnesses, injuries, or even fatalities, it’s important your business is covered for this possibility.
With insurance, you can cover costs such as medical care and any time off employees require from work. It will also protect your business from employee lawsuits.