Used Tire Shop Insurance

Finding the Best Used Tire Shop Insurance

What you need to protect your business

Used tire shop insurance

Used tire shops are primarily engaged in retailing used tires, sometimes in combination with other automotive repair services.

Business insurance can help you protect your livelihood when things go wrong. Used tire shop insurance helps cover your losses when you sustain property damage or when you are accused of some kind of negligence.

A local independent insurance agent can help you get the used tire shop insurance you need to address all of your risks.

Why Do You Need Used Tire Shop Insurance?

Used tire shops must 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, 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

Your used tire shop insurance can be the difference between recovering after a loss and being forced to close your doors for good.

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What Does Used Tire Shop Insurance Cover?

Tire shop insurance consists of several types of business insurance policies that are essential for any type of retail establishment. You’ll need to start your coverage with the following policies.

  • Commercial general liability (CGL) insurance: This is critical for any used tire shop. 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.
  • Commercial property insurance: This policy is essential for proprietors who own their buildings or whose business handles a large volume of inventory. Business property insurance protects you if a fire, vandalism, smoke, theft, or other type of event damages your property. It provides coverage for lost inventory, office equipment, computers, and more.
  • Business interruption coverage: This is usually included in commercial property insurance. It protects your earnings 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.

Owners of tire shops may want to consider a business owners policy (BOP) if they qualify for one. BOPs are designed for small businesses and include liability, property, and business income insurance in one affordable package policy.

Do You Need Commercial Auto Insurance for Your Used Tire Shop?

If you offer deliveries or own vehicles for other business purposes, you need commercial auto insurance. Commercial vehicle 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 must have non-owned or hired auto liability coverage to protect your company if an employee is in an accident while out making deliveries.

The Importance of Product Liability Coverage for Used Tire Shops

Used tire shops sell products to the general public. The products you sell are placed in vehicles that are driven on public roads, in the presence of other vehicles, pedestrians, and other types of property. If a tire is faulty and leads to injury or death of a driver, passenger, or bystander, your business could be held responsible.

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 the 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.

Any company that participates in bringing a faulty product to market can be included in a lawsuit and held liable for damages to the user. The resulting payouts for medical costs, compensatory damages, economic damage, attorney fees, court costs, and even punitive damages can be insurmountable for a small business without this type of coverage.

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What Is Employee Theft and Crime Coverage?

Employee theft and crime coverage can protect your used tire shop from the costs of theft, dishonesty, and fraudulent acts committed by an individual employee or a group of employees.

Employee dishonesty coverage can be purchased as a stand-alone policy or as an endorsement on other business insurance policies. A basic stand-alone 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.

What Other Used Tire Shop Insurance Policies Do You Need?

In addition to the coverage types described above, used tire shops will want to consider some of the following types of business insurance.

Whether or not you need these types of coverage depends upon your specific business needs.

How Much Does Used Tire Shop Insurance Cost?

The cost of used tire shop insurance depends on the following information.

  • The size of your business
  • The location of your business
  • The number of employees
  • The value of the building (if you own it) and other property and physical assets you keep on your premises (inventory, machinery, and equipment, etc.)
  • The types of services you offer in addition to retailing tires
  • The types of coverage and amount of coverage that you need

Ultimately, the types and amounts of coverage you need to adequately cover your risks will dictate the cost of your coverage.

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Benefits of an Independent Agent

An independent insurance agent who has experience working with used tire 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 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 Used Tire Shop Insurance

Instead of getting an online quote, find an independent insurance agent now, and get a 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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