Important Aspects Considered When Computing Auto Repair Shop Insurance Cost

By Dorothy Ward


Automotive repair shop is amongst the best investments an investor can make. This industry deals with fixing broken vehicles. An insurance cover is required for an entrepreneur who has a desire to remain on the market for a long time. There is a likelihood of damage to assets and also physical injuries due to unexpected incidences which may occur. An insured business will exempt one from incurring extra expenses when such cases are experienced. Some of the coverage which is catered for when estimating auto repair shop insurance cost have been elaborated below.

The first aspect is liability insurance. Severe injuries are likely to occur within the facility during repairs. The injured victims will want to receive compensation for medical bills which will be spent. The owner of the investment will have to apply for a reimbursement from their company. This might be costly for the agency and therefore must be included when estimating the total monthly cost.

Garage keepers insurance. The clients cars must be protected while they are within the premises. There are cases of fire outbreaks which will burn down all the vehicle in the facility. The owners will demand for new models of the same make as the ones which has been burnt. Expensive tools may also be stolen from the vehicle. Such issues will have to be covered by the agency which has ensured the business.

Auto insurance cover. Test-driving the customers car after servicing may be done by the employees. Also, spares may be located at a distance which will require the worker to go for them. They may get accidents in the process leading to damage to the clients vehicle or physical injuries. The losses experienced in terms of treatments and repair of breakdowns will be compensated by the insurer.

Policy cover for business interruption. This policy is crucial since auto shop owners are assured that unexpected events will not affect the business. The investment may be destroyed when such cases arise. The entrepreneur is supposed to pay employees, rent, electricity bills and taxes despite the interruptions. The insurer will have to settle these payments on behalf of the facility owner.

Workers compensation. This includes benefits for employees in case they get injured in the line of duty. The affected personnel will ask for personal injury claims which must be compensated. This should be done by the provider. The reimbursement covers medical bills, loss of income during the period when the worker was sick and rehabilitation.

Policy cover for business property. This insurance protects the assets in the premises where the outlet is located. The settlements should be done when the property of the investor is damaged. This may be as a result of fire outbreaks, vandalism, earthquakes, storms or accidents. Some of the assets include furniture, fence and inventory.

Insurance for equipment. This covers for destructions experienced in the repair shop building. Also, damage of special equipment is covered by this policy. The damages to tools within the repair shop may arise due to fire, mechanical breakdowns or even accidents. Replacement of these items is done by the insurer of the investment.




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