Auto Repair Insurance: A Guide To Obtaining Business Insurance

Obtaining insurance for your auto repair service can be a cumbersome process that requires you to answer a long list of detailed questions about your business. Underwriters depend on your answers to determine if they can insure your business, on what terms, and for what premium. The process will go faster and smoother for you if you begin prepared.

We invite you to download our complimentary guide to learn the list of questions your insurance agent will need to ask you on behalf of the underwriter. Reviewing this list and preparing your answers will help you in the process of obtaining a quote. We also provide a business insurance checklist so you can be thorough in your exploration of insurance options.

INFORMATION YOU WILL NEED TO PROVIDE YOUR AGENT

In order to provide you with a quote your agent will need to gather information from you about your business. Your premium is based on many factors. This information will help your agent provide you with an accurate premium. Most questions are easy to answer such as your business address or length of time in business. Others may take some thought. These are the questions we will address.

Business Owners Policy

  1. Building Limit. If you own the building you will want to include this coverage in your quote. Do you know what it would cost to rebuild your building? Maybe you want to use the same limit as your current policy. Will you need help from your agent to determine this limit?
  2. Business Personal Property. What is the current value of your business personal property? This limit will include your furniture, inventory, tools, equipment and if you do not own the building, tenant improvements and betterments.
  3. What year was the building constructed? If you do not have this information your agent can sometimes obtain this for you through county records.
  4.  Be prepared to explain the construction of your building. This information is needed even if you do not own the building. Is the construction frame, or concrete block, is the roof wood or metal?
  5. What is the area (square feet) of your building?
  6. What are your annual gross receipts?
  7. Does your building have an automatic sprinkler system, central station burglar alarm or central station fire alarm?
  8. Do your employees keep their own tools on the premise? If yes do you want to insure them? How much per employee? What is the total limit for all employee tools?
  9. What is the total value of cars owned by customers that may be in your shop at any one time?
  10. Has your business had a claim in the past 5 years? What was the approximate date, cause and amount paid out.

Commercial Auto Policy

If your business owns any vehicles, your agent will need the following information:

  1. Vehicles. Year, make, model, VIN#, radius of use in miles, zip code where it is garaged at night, and how it is used. If it is a commercial vehicle your agent will also need the gross vehicle weight.
  2. Employees. If you have any employee driving the business owned vehicles your agent will need their drivers license number, date of birth and marital status.

Workers’ Compensation Policy

  1. Employers Federal Tax I.D. number
  2. Annual Payroll

COVERAGE CHECK LIST

Your auto repair business is different from any other business out there, so you deserve an insurance plan that fits your unique needs. Use this checklist to be sure all of your coverage concerns are addressed.

  1. Garage liability coverage – to protect against faulty work, customer injuries, operation of your customers cars and lawsuits
  2. Garagekeepers coverage - to protect against customer vehicle damage
  3. Employee tool coverage
  4. Building coverage
  5. Business property coverage
  6. Permanently installed machinery, equipment and tanks including pumps
  7. Outdoor sign coverage
  8. Business income coverage
  9. Employee dishonesty coverage
  10. Money and securities crime coverage
  11. Pollutant clean up and removal
  12. Business auto coverage
  13. Non-owned auto coverage
  14. Worker’s compensation coverage
  15. Employment related practices coverage
  16. Property in transit coverage
  17. Business umbrella coverage

HOW DO I CHOOSE AN AGENT?

Price is always a consideration but it shouldn’t be the only consideration. A low price does not necessarily mean quality advice, responsive service and the coverage your business requires. Consider the following when choosing an agent:

  1. Length of time in business. 
  2. Did the agent take the necessary time to learn about your business and answer your questions?
  3. Did the agent provide you with all the facts and guide you through the process?
  4. Did you receive a written proposal with a quote from a financially strong company?
  5. Did the agent make you feel comfortable that he/she will be a trusted advisor in the growth of your business?