Driveline shops provide specialized mechanical or electrical repair and maintenance services for vehicle drivelines. The driveline of a vehicle transfers power from the engine and transmission to the wheel. It consists of the vehicle’s axles and driveshaft as well as the wheels, joints, and differentials. It is essential to the operations of front-wheel drive, rear-wheel drive, and four-wheel drive vehicles, trucks, and even farming equipment.
Driveline shops are typically brick-and-mortar garages and retail spaces that may also sell or distribute a wide variety of driveline parts.
If you own and operate a driveshaft shop, you’ve got a lot of business risks that can lead to serious financial losses. You need business insurance that covers basic property and liability losses, as well as other driveline shop insurance policies that are customized to your unique needs. An independent insurance agent can help you get the coverage you need.
Why Do You Need Driveline Shop Insurance?
The driveline of a vehicle is a combination of several parts that are separate from the engine and transmission: the driveshaft, the axles, the wheels, and the differentials and joints. These parts are also commonly referred to as the drivetrain, and they work together to steer the vehicle. Driveline repairs become necessary when the system or any of its components sustains physical or structural damage, wear and tear, rusting, or breakage.
Your driveline shop employees must be able to complete new driveline assemblies as well as perform custom repairs and driveline balancing. They must be highly trained, and your shop must be stocked with a wide variety of dependable parts and components for numerous vehicle models. You must also utilize state-of-the-art tools and equipment to complete your work.
No matter how careful you are when performing driveline repairs or providing a safe environment for your customers and employees, things can and will go wrong. From time to time you’ll experience a property loss. And worse, if you cause third-party property damage or injuries, you’ll likely be sued. Consider the costs of these types of incidents:
- Customer trips and falls in the garage or parking lot
- Customer property damage that occurs in the garage or parking lot
- Damage to a vehicle while it’s in your shop for driveline repairs
- 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
- Tools and equipment damage
- Employee theft of cash or inventory
- Installing faulty parts or making faulty repairs
- Employee injuries
- Employee lawsuits related to discrimination or other claims
- Cyber breaches
Your driveline shop insurance can help protect you when problems like these occur so you can avoid financial devastation and get back to business.
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What Is Garage Liability Insurance?
Garage liability insurance provides several forms of general liability protection specifically designed for the needs of garage and auto repair shop owners, including driveline shops.
A basic garage liability insurance policy is designed to cover bodily injury or property damage caused by an accident during garage business operations. Garage liability coverage is typically purchased by automobile dealerships and repair shops, among other businesses. It covers:
- Third-party injuries
- Property damage caused by equipment owned by the business
- Products manufactured or sold by the shop that cause damage to a customer’s vehicle
If a customer slips and falls at your shop, this coverage will help pay for any related medical bills and your legal fees if he or she decides to sue you.
What Is Garagekeepers Liability Insurance?
Garagekeepers liability insurance is specialty business insurance coverage designed for all kinds of auto repair shops, service stations, body shops, detail shops, and any other type of establishment that provides parts or service for vehicles and temporarily stores those vehicles on-site.
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.
What Other Insurance Policies Do Driveline Shops Need?
You’ll need some other driveshaft shop insurance policies to ensure you have no gaps in your coverage.
- Commercial property insurance: This is essential for proprietors who own their buildings or whose business handles a large volume of expensive 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: Also known as business income coverage, this is usually included in commercial property insurance policies which 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.
- Commercial auto insurance: This 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 an accident while out making deliveries.
What Is Employee Theft and Crime Coverage?
Small businesses are particularly vulnerable to crimes such as employee fraud or embezzlement. Even a small cash theft can be difficult to overcome.
Employee theft and crime coverage: This 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 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.
Other Insurance Policies for Driveline Shops
In addition to the coverage types described above, driveline shops will want to consider some of the following types of business insurance. Whether or not you need them depends upon your specific business needs.
- Workers’ compensation insurance: This covers the costs of employee injuries and illnesses, and provides income replacement if the employee cannot work while he or she recovers.
- Equipment breakdown/boiler and machinery coverage: This covers certain costs associated with accidental breakdown of machinery or equipment and the resulting property damage or loss.
- Employment practices liability coverage: This protects you from employee lawsuits related to discrimination and other employment-related business practices.
- Cyber liability insurance: This provides coverage in the event of a data breach involving your business.
How Much Does Driveline Shop Insurance Cost?
The cost of driveline shop insurance will vary depending on the coverage that you need as well as your unique risks. Your location, number of employees, size of your garage, and the value of your equipment, inventory, tools, and other commercial property influences the cost.
The more risk exposures you have (more employees, more than one location, more valuable inventory, several business-owned vehicles, online sales, etc.), the more you can expect to pay.
Find and Compare Quotes
An independent insurance 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 driveline shop insurance. They’ll walk you through the handpicked policy options and explain the details and options.
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.
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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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