Auto paint shops offer collision repair services, especially dent repair and auto painting, for passenger cars, trucks, and vans, and trailers.
Owners of auto paint shops need business insurance to protect their assets from the risks associated with taking in and repairing other people’s vehicles. Any kind of injury, error, or property damage can result in a costly claim or lawsuit.
An independent insurance agent can help you find appropriate auto paint shop insurance tailored to your needs.
Why Do You Need Auto Paint Shop Insurance?
Auto paint shops typically fix dents and dings, replace panels, repair light collision damage, and most importantly, provide auto paint services for damaged vehicles and even vehicles that simply need a fresh or custom paint job.
Auto paint shops typically employ trained professionals and utilize expensive equipment to perform auto paint jobs to exacting standards. Auto paint shops are not only entrusted to fix their customers’ cars, but they are also entrusted to keep those cars safe while in their control. The last thing you want to happen is doing more harm than good to someone’s car.
In addition, auto paint shops face the following types of business risk:
- Slips and falls on your premises
- Worker illness or injury
- Faulty workmanship or parts
- Property damage due to fire, bad weather, vandalism, or theft
- Damage to a customer’s vehicle while in your care
- Employee theft or crime
- Business interruption
You need a variety of business insurance policies to protect your business from these risks.
What Basic Business Insurance Policies Do Auto Paint Shops Need?
Auto paint shops should work closely with an independent insurance agent to determine their need for the following types of business insurance:
- Business property insurance: This protects you if a fire, vandalism, smoke, theft, or other event damages your property. It provides coverage for lost inventory, office equipment, computers, and more. Most business property policies also include business income — or business interruption — coverage. This will pay for rent, employee salaries, and other expenses if your shop must close temporarily due to an unforeseen disruption.
- Commercial general liability (CGL) insurance: This provides protection for most basic liability issues that a garage or auto repair shop could face. It protects you from the costs of lawsuits related to accidents, property damage, and a variety of other mishaps. You will likely want to consider garage liability insurance, which provides several forms of liability insurance more specifically designed for the needs of garage and auto body shop owners.
- Business owners policy: Also known as BOP, this is a package policy designed for small businesses. It combines property, liability, and business interruption coverage in one affordable policy.
- Employee theft and crime coverage: This can protect your business from the costs of theft, dishonesty, and fraudulent acts committed by a single employee or a group of employees.
- Business auto insurance: This is particularly important for auto paint shops, to cover any vehicles that your business owns. In addition, you need non-owned auto insurance if you have any employees who drive their personal vehicles for business purposes.
Since auto paint shops vary significantly in the services they provide, you must work with your insurance agent to determine if you need some type of specialty insurance product. These special products combine relevant business insurance policies into one comprehensive package, such as:
- Tow truck insurance
- Body shop insurance
- Repair shop insurance
What Is Garagekeepers Liability Insurance?
Garagekeepers liability insurance: This is specialty business insurance coverage designed for auto paint shops and just about any other type of establishment that provides parts or service for vehicles and temporarily stores those vehicles onsite.
Garagekeepers liability insurance protects you if a customer’s vehicle is damaged due to your negligence while it is in your care, custody, or control. This protection is not included in the standard garage liability policy. There are a number of ways in which a customer’s vehicle can be damaged while in your possession, such as fire, theft, weather events, vandalism, employee test drives, and lift accidents — to name a few.
Garagekeepers liability insurance does not cover the contents of a customer’s vehicle, and also does not cover damage that occurs as a result of faulty workmanship, parts, or insufficient warrantees.
Workers’ Compensation Insurance Is Essential for Auto Paint Shops
Auto paint shops are dangerous places, particularly for the employees who do the work. The potential for smashed hands and crushed limbs from machinery or falling vehicles is present every day. Employees are subjected to fumes and toxic chemicals, paints, and other corrosive materials that can cause skin, eye, and lung irritation.
If one of your employees gets injured while on the job, not only will he or she have medical fees to pay, but also your employee may not be able to work until fully recovered.
Workers’ compensation insurance: This protects your employees and your business from the costs associated with work-related injuries and illnesses. It provides coverage for medical care and lost income for an injured worker while he or she is unable to work. Workers’ compensation insurance also helps protect employers from lawsuits by injured employees.
How Much Does Auto Paint Shop Insurance Cost?
The cost of auto paint shop insurance varies depending on the size of your business, the number of employees you have, and how much business property (buildings, inventory, and equipment) you have, and the types of services that you provide.
Business insurance costs are also higher or lower depending on the location of your business, whether or not you own any commercial vehicles, and how risky your physical space and line of work is to customers and employees.
An independent agent who has experience working with businesses like yours can help you decide the types and amounts of coverage you need for your used auto parts store. The choices you make will determine your cost of coverage.
Find and Compare Quotes
An independent agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice.
Benefits of an Independent Agent
Our agents simplify the search process for finding the right used auto paint shop insurance. They’ll walk you through the handpicked policy options and explain the details.
Most importantly, they’ll 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.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get — but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can omit important coverage that will leave you devastated if something unexpected happens. And they can leave out cost-saving opportunities that an agent can help you take advantage of.
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.
TrustedChoice.com Article | Reviewed by Paul Martin
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