Brake shops need business insurance to protect their assets from the risks associated with making repairs to other people’s vehicles. Any kind of injury, error, or property damage can result in a costly claim or lawsuit.
If you own a brake shop, you need brake shop insurance that is tailored to your needs. With the help of an independent insurance agent, you can face your risks and find coverage that helps you stay in business for the long term.
Why Do You Need Brake Shop Insurance?
Brake shops exist primarily to diagnose and repair brake problems on all kinds of vehicles, including cars, trucks, and SUVs. If you own a brake shop, you likely also perform other auto repair and maintenance services, including oil changes, muffler repairs, tire services, and more.
In order to perform all of these tasks, you need to take control of your customers’ vehicles for a period of time. You might have custody of a vehicle for an hour to do an oil change, or for several days while you await parts and perform complicated repairs.
In addition to ensuring that you repair brake systems properly, you’re also entrusted to keep your customers’ vehicles safe from other problems while they’re in your shop. You can do a perfect repair, but if a worker dings a door or a larger disaster like a fire wipes out everything, you’ll need to have a way to compensate vehicle owners for any damage done. That’s where your brake shop insurance can help.
You also need to protect your business from all kinds of other things that can go wrong on your premises or as a result of your work. Brake shop insurance can help you address these risks.
- Slips and falls
- Worker illness or injury
- Faulty workmanship or parts
- 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 kinds of problems. In addition, garage liability insurance and garage keepers insurance are designed to help you protect your customers’ property and your business in wake of accidents, injuries, or property damage.
What Kinds of Business Insurance Policies Do Brake Shops Need?
A brake shop insurance program should include a variety of policies, including the following.
- Commercial property insurance: This protects you if a fire, vandalism, smoke, theft, or other catastrophic event damages your property. It provides coverage for damage to your building as well as destroyed or damaged parts, tools, machinery, office equipment, computers, and more. Most business property policies also include business interruption coverage. This will pay for rent, employee salaries, and other expenses if your shop must close temporarily due to a covered property loss.
- Commercial general liability (CGL) insurance: This provides protection for most basic liability issues that a brake shop could face. It protects you from the costs of lawsuits related to accidents, property damage, and a variety of other mishaps that can occur on your premises. You will likely want to consider garage liability insurance, which is a special package policy that provides broad liability coverage tailored for the needs of brake shops, body shops, and other various kinds of garages and auto repair services.
- Business owners policy (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.
- Commercial vehicle insurance: This is particularly important for brake shops, to cover any vehicles that your business owns. In addition, you need non-owned auto liability insurance if you have any employees who drive their personal vehicles for business purposes.
You may be able to purchase a special package policy designed for certain types of brake shops, depending on the services you provide. Some examples of special policies designed for garages include the following.
- Tow Truck Insurance
- Body Shop Insurance
- Repair Shop Insurance
- Muffler Shop Insurance
- Radiator Services Insurance
- Transmission Repair Insurance
These special products combine relevant business insurance policies into one comprehensive package policy.
What Is Garage Keepers Liability Insurance?
Garage keepers liability insurance: This is specialty business insurance coverage designed for auto repair shops including brake shops, service stations, auto body shops, detail shops, vehicle electrical and repair shops, auto glass installers, oil change and lube shops, emissions testing sites, and just about any other type of establishment that provides parts or service for vehicles and temporarily stores those vehicles onsite.
Garage keepers 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.
Garage keepers 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.
Why Is Workers’ Compensation Insurance Important for Brake Shops?
Brake shops perform a variety of auto repairs. If you own a brake shop or any kind of auto repair business, your employees face numerous dangerous in their daily work.
You’re likely to have cars on lifts with employees using heavy machinery, complicated tools, and a variety of other dangerous equipment in order to do their work. If an employee gets injured while on the job, he or she may have significant medical bills that need to be paid. And an injured employee may also lose wages if he or she cannot return to work until fully recovered.
Workers’ compensation insurance: This is required by your state. While each state has varying requirements and benefits, workers’ compensation insurance is always designed to protect your employees and your business from the costs associated with work-related injuries and illnesses. It covers an injured employee’s medical bills, and it pays a portion of an injured employee’s lost wages if he or she is unable to work for a while after the injury.
Each state has workers’ compensation insurance laws. Most states require nearly every business that has employees to provide this coverage. Your state’s workers’ compensation statutes determine the amount of benefits injured workers are entitled to, which impairments or injuries are covered, how those impairments will be evaluated, and how medical care will be delivered.
How Much Does Brake Shop Insurance Cost?
The cost of brake shop insurance varies depending on the following.
- The size of your business
- The number of employees you have
- How much commercial property you have (buildings, inventory, equipment, etc.)
- 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.
Benefits of an Independent Agent
You may have some things in common with other businesses, but in many ways your business is unique. Don’t trust your livelihood to a faceless online quote or an insurance company representative who doesn’t know the ins and outs of your business. A local, independent insurance agent will get to know you and your business.
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 Brake 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.
TrustedChoice.com Article | Reviewed by Paul Martin
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