Automotive Machine Shop Insurance

Automotive Machine Shop Insurance 101

How business insurance can protect your livelihood

V8 Car Engine Repair. Find automotive machine shop insurance.

Automotive machine shops perform work such as welding and body work, rebuilding engines, and crafting custom engines or parts. These shops face numerous business risks, from lawsuits to worker injuries and on-site property damage.

If you own an automotive machine shop, you need a comprehensive business insurance program designed to address your unique needs. An independent insurance agent can help you get the tailored automotive machine shop insurance that you need to protect your livelihood.

Why Do You Need Automotive Machine Shop Insurance?

As a business owner, you need to understand all of your business risks, and how to protect your business and your employees from devastating injuries, property damage, and lawsuits. Automotive machine shop insurance can help you cover these kinds of risks:

  • Dangers of using machine tools and other specialized tools and equipment
  • Machinery and equipment breakdowns
  • Product defects
  • Commercial property damage, including damage to raw materials, completed products, equipment, and buildings due to accidents, fire, theft, weather, and other natural disasters
  • Business interruption due to accidents, fire, natural disasters, machinery breakdown, utility interruption, and more
  • General liability risks, causing property damage or injuries to third parties on your premises or as a result of your work

With the help of an independent insurance agent, you can find automotive machine shop insurance that protects you from these, and other, costly problems.

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What Does Commercial Property Insurance Cover?

Commercial property insurance protects your business if a fire, vandalism, smoke, theft, or another covered property loss occurs. It provides coverage for lost inventory, industrial equipment and machinery, warehouses and office space, office equipment, computers, valuable papers, and more. It may also provide coverage for neighboring facilities and completed products housed on your premises.

Commercial property insurance policies usually include business interruption coverage, as well. It protects your income and helps to pay expenses if your business is unable to operate because of damage caused by some type of covered disruption (fire, hail, wind, equipment breakdown). You can expand your business interruption coverage to include coverage for breakdowns in utility services (water, electrical) that force you to temporarily close your doors.

Determining how to best to cover all of your commercial property is essential. You need to work with an experienced independent insurance agent who can help you evaluate and calculate appropriate valuations for your machine shop and equipment and determine the right policy limits. An agent with automotive machine shop insurance can help you properly differentiate coverage for your building, heavy equipment, and other contents.

Can Insurance Help When Your Equipment Breaks Down?

Equipment damage and breakdown is a potentially devastating property risk for automotive machine shops. Without your specialized machine tools, your business would be unable to operate, pay for expenses, and earn revenue.

Equipment breakdown insurance, often referred to as boiler and machinery coverage, supplements your commercial property insurance. It covers certain costs associated with accidental breakdown of machinery or equipment and the resulting property damage or loss.

Equipment breakdown coverage typically covers breakdowns due to power surges, motor burnout, boiler malfunctions, and even operator error. You can obtain coverage for mechanical and electrical equipment, computers and computer systems, boilers, and other types of pressure equipment.

Boiler and machinery insurance covers repair and replacement costs as well as business interruption costs related to a breakdown of covered machinery or equipment.

Why Do You Need Workers’ Compensation Insurance?

The safety of employees in a machine shop environment is of utmost importance. Your workers may come into contact with complex machine tools, cutting tools, heavy machinery, and numerous dangers to fingers, toes, eyes, and other appendages. Employees who regularly work with hand tools are particularly vulnerable to repetitive motion injuries.

Workers’ compensation insurance provides insurance coverage when accidents happen in the workplace. It ensures that the injured worker gets medical care and income protection while unable to work.

Workers’ compensation insurance provides benefits to injured workers regardless of who is at fault for their injury. And it will provide death benefits for a worker’s dependents if they are killed.

What Does Commercial Liability Insurance Cover?

You need general liability insurance for occasions when your business is negligent and causes bodily injury or property damage to a third party. Your commercial general liability (CGL) policy protects you in the event of third-party lawsuits, with coverage for attorney fees, court costs, settlements, and judgments up to the limits of your policy.

Like any company that manufacturers a product, you may also have product liability exposures. Claims for product-related damage are usually related to manufacturing or production flaws, design defects, or defective warnings or instructions. If you are sued for some type of product negligence, you may be required to pay for medical costs, compensatory damages, economic damages, attorney fees, court costs, and more.

Product liability insurance covers your financial responsibility for losses or injuries to a user, buyer, or bystander caused by a defect or malfunction of your product. Some product liability coverage is usually included in standard commercial general liability (CGL) policies, but this coverage may not be sufficient for your needs.

You need an experienced agent to help you determine how much product liability exposure you have, and how much and what type of coverage you need.

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Additional Liability Policies for Automotive Machine Shops

If you own trucks or other vehicles, commercial auto insurance covers your vehicle fleet and drivers if an accident or other vehicle damage occurs. Commercial auto insurance provides coverage for property damage and bodily injury liability claims, vehicle damage, and medical bills, as well as any costs related to lawsuits due to auto accidents involving your vehicle fleet.

It’s also important to talk to your independent insurance agent about your need for commercial umbrella insurance. This provides an extra layer of liability protection to any of several other policies you might have, including commercial general liability and commercial auto insurance. By purchasing one commercial umbrella policy, you essentially get higher limits on all of those policies, rather than having to raise the limits on each policy individually.

Commercial umbrella insurance kicks in when the limits of your other applicable insurance policies have been exhausted, protecting you if a claim exceeds the amount of coverage available from any other applicable policy.

How Much Does Automotive Machine Shop Insurance Cost?

There are many different variables that determine the cost of automotive machine shop insurance.

Your costs for business insurance will vary depending on the unique characteristics of your business, such as the location, the number of employees, the value of your commercial property (building plus contents), whether you own your building, and the types and volume of the parts and products that you produce.

The amount of coverage you need and the deductibles you choose also impact your insurance costs.

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Benefits of an Independent Agent

An independent insurance agent who has experience working with automotive machine shops and other similar businesses can help you decide the types and amounts of coverage that you need for your business. The choices you make will determine your cost of coverage.

Independent agents can work with numerous reputable insurance companies that specialize in your type of business. Together you can review a variety of proposals and choose the best mix of coverage that meets your needs and budget.

What’s more, your agent will be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.

Find and Compare Quotes for Automotive Machine Shop Insurance

Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.

Your agent will work with you free of charge to get quotes from multiple insurance companies so you can make the best choice.

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