Auto Services Insurance Snapshot
Below is a very broad Coverage Evaluation Checklist, which can be used as an excellent starting point to determine if you’re buying the right coverage. This ensure we address every possible exposure with you. Feel free to download and save it for your own use or complete with our agency’s team.
As an auto services business, your exposures are unique to the nature of the work you do. The below categories are the most critical areas of risk that most of our auto services clients needed to address through proper insurance placement, as well as risk management strategies.
The most critical set of exposures to any type of auto services business involve what we call “garage operations” – this involves all or some of the following risks:
- Damage or harm to others (third parties) while operating customer autos or your own autos
- Damage to customer autos while driving or as a result of your repair work
- Damage to autos your hold “for sale” as a dealer
- Bodily injury to others while on your “premises”
There are couple of ways to insure these risks. The most common method is to purchase a Garage insurance policy which is a policy designed specifically for auto services operations and may be the best option. Additionally, some insurers allow agents to endorse the General Liability and Business Auto insurance policies to protect against all these unique exposures in a perfectly satisfactory manner as well. Our agents can evaluate the best coverage and rates for your situation.
In most states, businesses are required to abide by state workers compensation laws, which obligates the employer to pay for any medical expenses and lost wages related to work-related injuries or illnesses. Workers Compensation insurance is required to ensure the financial resources are available to meet this obligation.
Implementing good safety and training practices into your business will help prevent work comp claims and keep your costs low – we have resources and expertise which can be shared with you.
In the auto services business, your work may create environmental exposures:
- Accidental discharge of pollutants from your premises
- Discharge pollutants from customer autos on the road
General Liability, Business Auto and Garage policies restrict or sometimes totally exclude liability from pollution. If you have a serious enough exposure, you may want to purchase a separate policy or endorse existing policy for Pollution Liability. Discuss with your agent if you are concerned about this risk.
EMPLOYEE LAWSUITS (EEOC)
Workers who accuse your auto services business of wrongful termination, discrimination, harassment or other similar possibilities, you may have to spend a lot of money defending your company (or paying out settlements). Employment Practices Liability insurance is a cost-effective way to protect against this exposure.
If your company retains personally identifiable information (PII), including information on customer financial accounts, social security #s, birthdays, driver license #s, etc., and your records are breached by outside parties, then you may face significant liability. Buying a robust Cyber Insurance policy can help protect against these ever-growing and evolving exposures.
- “A Rated” Insurance Carriers
- Garage – protects your company from liability caused while driving a customer’s auto
- Garagekeepers – covers your customer’s auto from physical damage while in your possession or control
- Dealers Blanket – includes coverage for autos, boats or RVs you are holding “for sale” as a dealer
- Property – covers loss to buildings, personal property and loss of income from causes such as fire, lighting, wind, theft, etc.
- General Liability – covers liability arising from personal or advertising injury or bodily injury or property damage occurring on your premises or from your work, products or ongoing operations
- Errors & Omissions Liability – covers liability arising from a professional error or omission arising from work as a realtor, landlord or property manager
- Business Auto – covers physical damage to your owned, rented or non-owned vehicles, as well as liability arising from bodily injury or property damage to others
- Employment Practices Liability – covers liability arising from employment issues like discrimination, harassment, retaliation or wrongful termination
- Directors & Officers Liability – covers liability to director and officers of your company resulting from fiscal mismanagement, breach of duty, etc.
- Fiduciary Liability – covers liability to “fiduciaries” on behalf of beneficiaries of employee benefits, health/welfare plans and retirement plans
- Crime – covers losses resulting from employee dishonesty, funds transfer fraud, robbery or theft and forgery or alteration
- Cyber Liability – covers liability and expenses arising from data breaches
- Workers Compensation – covers your obligations to work-related injuries under workers comp statute, as applies in your state
- Tenant Legal Liability – covers you for damage caused by tenant negligence to your property
- Coverage Enhancement Options (theses are often excluded from coverage unless added by endorsement):
- Ordinance or Law – covers your property for increased costs of construction to comply with updated building codes after a covered loss
- Equipment Breakdown – covers equipment like generators, hvac systems, phone systems, computers, machinery and boilers from mechanical breakdown, explosion or electrical arcing
- Flood – covers your property from flood damage
- Earthquake – covers your property from earth movements
- Punitive Damages – covers loss resulting from judgments which impose multiplication of the general damages as a punishment to the defendant (note: punitive damages insurability by state)
- Mental Anguish – ensures coverage for bodily injury applies to mental anguish, which in some jurisdictions has been classified as such, but in others it’s not so clear
- Wage & Hour – coverage for employment practices liability resulting from disputes over salary vs hourly workers (i.e. exempt vs non-exempt employees)
Shields Insurance Agency is an Independent Insurance Agency based out of Birmingham, AL and we are licensed to write property & casualty insurance in AL, FL, GA, MS and LA. This includes commercial lines and personal lines insurance.
Representing several top-rated insurers, we are capable of writing commercial insurance policies for an array of business types with very competitive pricing and broad coverage terms.
Some of our primary specialties – industries for which we are most competitive – include:
Lets Reduce Your Rates and Improve Coverage
Most people don’t understand their unique risks or their insurance and are therefore buying the wrong coverage and paying too much. If you work with our insurance agency, we will implement our simple 3-step process to identify your key exposures, improve insurance coverage and reduce rates.