Engine repair services are part of the home and garden equipment repair industry. This industry is composed of establishments that are primarily engaged in repairing and servicing home and garden equipment, without retailing new home and garden equipment.
Engine repair services focus on repairing small engines, such as those in lawnmowers, handheld power tools, lawn tractors, snow blowers, leaf blowers, and trimmers. They also repair engines and motors for chainsaws, generators, pressure washers, and even outboard motors.
Engine repair shops have a great deal of technical expertise and employ skilled repair technicians. Engine repair shops also face a lot of risks that can be costly and damaging to the long-term survival of the business.
If you own an engine repair shop, you need a comprehensive business insurance program tailored to your unique risks. An independent insurance agent can help you find policies that protect your business.
Why Do You Need Engine Repair Insurance?
Engine repair shops typically take items for repair into the shop. You or your employees can damage a customer’s snow blower or lawn mower during transport, while in your shop, or in the course of making repairs to the engine.
What’s more, the possibility for property damage to your building and property, or your customers’ property, is endless. Your building can catch fire, damaging everything inside — including items that belong to customers that are being stored on your premises.
The specific business insurance policies that you need depend the number of employees that you have, and the types of services you provide. Any business that provides repair services requires special insurance policies and endorsements that address these issues.
- Damage to your building or shop
- Damage to your own office equipment, computers, tools, and equipment
- Your customers’ physical well-being on your premises
- Your customers’ property while in your care
- Employees driving company-owned vehicles
- Work-related injuries and illnesses
What Does Engine Repair Shop Insurance Cover?
Engine repair businesses need a variety of basic business insurance policies, as well as several additional coverage options tailored to their specific business risks.
- Commercial general liability (CGL) insurance: This pays for the costs associated with bodily injury or property damage claims against your business. General liability insurance offers broad protection for a variety of liability risks that your business is exposed to, from customer slips and falls to claims of advertising liability, slander, libel, and more. Your CGL policy will pay for your legal defense, attorney and court costs, and any settlements or judgments that you must pay, up to your policy's limit.
- Commercial property insurance: This protects your building(s) and other physical assets from costs associated with weather damage, fire, smoke, vandalism, theft, and other types of property damage. Commercial property insurance not only protects your building, but also your computer systems, fixtures, parts inventory, tools, and other equipment that you use in your operations.
- Business interruption coverage: This is another policy which provides income protection if you must temporarily cease operations due to some unforeseen event, such as fire, weather, etc.
- Business owners policy (BOP): If you qualify, you might choose to purchase this small business insurance policy that includes property coverage, liability coverage, and business interruption coverage in one affordable package.
Engine Repair Shops Need Commercial Auto Insurance
You likely have employees who pickup and deliver items from customers before and after engine repairs are made. In these cases, it is likely that you provide trucks, vans, or other vehicles for your employees to drive.
If you own one truck or a fleet of vehicles, you need commercial auto insurance. Commercial vehicle insurance covers your cars, trucks, and any other vehicles you use for business. It provides bodily injury and property damage liability coverage, as well as collision, comprehensive, and uninsured motorist coverage.
While similar to personal auto insurance, commercial auto insurance is priced differently and is designed for commercial situations. Your commercial auto insurance can be tailored to your needs, and your coverage and premiums will be based on how your vehicles are used and who drives them.
Why Do You Need Workers’ Compensation Insurance?
Engine repair shops can be dangerous places, particularly for the employees who do the work. The potential for cuts, abrasions, smashed hands, repetitive motion injuries, and worse is with you and your employees every day. And if one of your employees gets injured while on the job, he or she may not be able to work until fully recovered.
Workers’ compensation insurance protects your employees and your business from the costs associated with work-related injuries and illnesses. It provides coverage for medical care and income protection for an injured worker while he or she is unable to work. Workers’ compensation insurance also helps protect employers from lawsuits by injured employees.
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.
Talk with your independent insurance agent about workers’ compensation insurance. Your agent should be able to educate you about your state’s workers’ compensation requirements, and can help you find appropriate coverage.
What Is Bailee’s Coverage?
The majority of your business revolves around you taking customers’ property into your shop for repair. What happens if a customer’s snow blower or lawn mower is damaged while it is in your care, custody, or control? Because standard commercial property and liability policies cover only your own property, you need special coverage for your customers’ property that is in your possession.
Bailee’s coverage is an add-on to a business property policy that covers non-owned property that is stored at your shop or is in your possession. It helps pay for damage and minimizes the financial implications for you and your customers if their property is damaged while in your control. Bailee’s coverage is specifically designed for businesses that take in the property of others and are expected to return it undamaged.
What Other Insurance Policies Do You Need to Protect Your Livelihood?
Engine repair shops also need a variety of other business insurance policies, depending on where and how you do business, how many employees you have, and other factors that you should discuss with your agent. Most of these policies can be tailored to the exact needs of your business and the risks it faces.
- Employee theft and crime coverage: This protects you from instances of employee theft, fraud, or other crimes against your business.
- Inland marine coverage: This protects tools, equipment, and supplies that you bring off-site to make repairs. Commercial property and commercial auto policies typically exclude coverage for those items once they leave your premises.
- 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 Engine Repair Insurance Cost?
Engine repair insurance might cost several hundred to several thousand dollars per year for liability coverage. Your costs will likely be higher or lower than average depending on the unique characteristics of your business, such as the location, the number of employees, the value of your commercial property (building plus contents), whether or not you own your building, and many more variables.
The amount of coverage you need and the deductibles you choose also impact your power equipment repair shop insurance costs.
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 engine repair 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.
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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