Auto Parts and Accessories Store Insurance

How to Insure Your Auto Parts and Accessories Store

Business insurance basics you need to know

Find auto parts and accessories store insurance

Retail stores need business insurance in order to protect their assets, and auto parts and accessories stores are no different.

Owners of auto parts and accessories stores need to make sure that their insurance policies are customized to their specific needs. An independent insurance agent can help you get the auto parts and accessories store insurance that you need to protect your livelihood.

Why Do You Need Auto Parts and Accessories Store Insurance?

Auto parts and accessories stores should invest in insurance policies that protect their business assets from the following potential risks.

  • Accidents, such as trips and falls in the store or parking lot
  • Shopping carts or store fixtures causing injury or property damage in the store or parking lot
  • Damage to your inventory due to some catastrophic or unexpected event (fire, smoke, severe weather, vandalism, etc.)
  • Loss of income due to a catastrophic or unexpected event
  • Equipment damage
  • Employee theft of cash or inventory
  • Delivery drivers involved in automobile accidents
  • Selling faulty products
  • Employee lawsuits related to discrimination or other claims
  • Cyber breaches
  • Fire damage to landlord’s property

A comprehensive package of auto parts and accessories store insurance policies can help you cover your business when you’re faced with these types of property or liability claims.

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What Does Auto Parts and Accessories Store Insurance Cover?

You’ll need several types of basic business insurance in order to protect your auto parts and accessories store. You’ll likely need all of the following.

  • Commercial general liability (CGL) insurance: This is critical for any retail establishment. It protects you from costs related to bodily injury or property damage that you or your employees cause to third parties. CGL policies also cover your defense costs, court costs, and court-ordered judgments that you must pay if you’re sued.
  • Commercial property insurance: This is essential for proprietors who own their buildings or whose business handles a large volume of expensive inventory. Commercial property insurance protects you if a fire, vandalism, smoke, theft, or another type of unexpected event damages your property. It provides coverage for lost inventory, office equipment, computers, and more.
  • Business interruption coverage: This protects your earnings if your business is unable to operate because of damage caused by some type of disruption (fire, hail, wind, equipment breakdown). This coverage is usually quite affordable and will be invaluable if you are forced to close your doors for a period of time in order to make repairs. It pays for rent, employee salaries, lost income, relocation fees, and more.

These policies can be customized for your unique needs.

What Is a Business Owners Policy?

You may want to consider a business owners policy (BOP) if your business qualifies for one. BOPs are designed for small businesses and include liability, property, and business interruption insurance in one affordable package policy.

If you qualify for a BOP, it can provide all three types of coverage for a more affordable price than if you purchase each policy individually.

When Do You Need Commercial Auto Insurance?

Does your auto parts and accessories store deliver? If so, you need commercial auto insurance. Commercial auto insurance covers your company’s vehicles and drivers (cars, SUVs, vans and trucks) that are damaged or injured in a collision or some other type of event.

If you or your employees drive personal vehicles for business purposes, you need non-owned or hired auto liability coverage to protect your company if an employee is an accident while driving for your business.

What Is Product Liability Insurance?

Auto parts and accessories stores sell products that are installed in vehicles that are driven on public roads, in the presence of other vehicles, pedestrians, and other types of property. If an auto part that you sell is faulty and leads to injury or death of a driver, passenger, or bystander, your business could be financially responsible.

Any company that participated in bringing the faulty product to market, including the retailer, can be included in a lawsuit and held liable for damages to the user. Product liability insurance covers a business’s financial responsibility for losses or injuries to a user, buyer, or bystander caused by a defect or malfunction of a product. In some instances, product liability insurance may also cover the manufacturer or seller of the product for defective design and failing to warn a buyer of a particular danger.

Your CGL policy or BOP might cover some product liability claims, but that coverage may be limited and insufficient for your needs. Your independent insurance agent can help you determine if you need additional product liability coverage.

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What Is Employee Theft and Crime Coverage?

Employee theft and crime coverage can protect your businesses from the costs of theft, dishonesty, and fraudulent acts committed by an individual employee or a group of employees. While it may be difficult for you to imagine, employees all too often steal property, money, and securities owned by their employers.

Employee dishonesty coverage can be purchased as a standalone policy or as an endorsement on other business insurance policies. A basic standalone employee theft and crime policy provides coverage for forgery, alteration, theft, unauthorized electronic funds transfers, credit card fraud, computer fraud, money order fraud, and counterfeit fraud. You can also add endorsements for additional coverage.

Other Insurance Policies for Your Auto Parts and Accessories Store

In addition to the coverage described above, you may want to consider some of the following types of additional auto parts and accessories store insurance.

Whether or not you need these types of coverage depends upon your specific business risks. A local agent can help you decide which policies are best for you.

How Much Does Auto Parts and Accessories Store Insurance Cost?

Auto parts and accessories store insurance costs depend on a variety of factors that are unique to your business, such as the following.

  • The size of your business
  • The number of employees that you have
  • The location and value of your building (if you own it)
  • The number of locations you have
  • The value of your inventory

The types and amounts of coverage that you need to adequately protect your business will determine your business insurance costs.

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Benefits of an Independent Agent

An independent insurance agent who has experience working with auto parts and accessories stores 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 who 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 Auto Parts and Accessories Store 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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TrustedChoice.com Article | Reviewed by Paul Martin

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