Auto Repair Shop Insurance In New York

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Auto Repair Shop Insurance In New York

In New York, many people do not have time to take care of car maintenance or repairs. Most people today have no idea what they are looking at when they open the hood and look at the mechanical wonders of modern technology. Fortunately, there are trained and experienced automotive professionals like you to make everyone’s life easier. However, running a garage can be risky and without proper auto repair shop insurance, you will not be able to stay in business for long when you face a disaster. Many problems can develop here.

A quick change oil store is very popular with residents. They have built a reputation for getting you in and out in minutes, and they also provide affordable services like a tune-up and car details. However, one day a technician left an oil cap from a car engine while changing oil. Two hours later the car caught fire and there was total damage. Fortunately, garage keepers have been insured for losses.

A lady enters a nearby garage to get some information about overhauling her vehicle. On the way to the service desk, she slipped and an oil spill broke, breaking her buttocks. This results in large medical bills and lost wages. The problem is seen by auto shop insurance.

A mechanic from Long Island has done a full break job in a luxury SUV just three years old. Naturally, he gets in the car to run the test. However, as he exits the store parking lot, he does not see a sports car travelling and pulls in front of him. It causes a terrible accident and with proper insurance, all costs will be taken care of.

A man brings his three-year-old truck for a transmission service. The technician accidentally leaks the wrong fluid, ruining an expensive transmission. Someone has to pay for the transmission and installation, and without insurance, it is the responsibility of the shop owner.

Auto Repair Shop Insurance – What is it?

As an auto repair business owner, you need to consider many risks. You take out insurance to cover all these risks, hoping that they will never happen, but know that they can happen at any time.

Who Needs Garage Keepers Insurance?

These businesses should consider special insurance for automotive store owners:

  • Auto mechanic garages.
  • Brake service.
  • Muffler shops.
  • Oil change services.
  • Transmission shops.
  • Automotive machine shops.
  • Car washing and detailing services.
  • Auto glass shops.
  • Auto dealerships.
  • Customizing Services.
  • Tire services.

Why Garage Keepers Insurance is Important

Garage keeper insurance falls under a garage policy operated by auto dealers, body shops, and form shops. It protects their liability if the client’s auto is damaged while enwrapping the garage for repairs, bodywork, or storehouse. Garage keeper insurance falls under a garage policy operated by bus dealers, body shops, and form shops. It protects their liability if the client’s auto is damaged while enwrapping the garage for repairs, bodywork, or storehouse. This type of liability insurance can be important for small bus businesses as it can give protection against fiscal catastrophe. Ideal for this type of content:

  • Towing companies.
  • Auto detailers.
  • Body shops.
  • Service stations.
  • Carwashes.
  • Repair shops.

What is the difference between garage liability and garage keepers liability?

Garage liability? Garage keeper? Do you know the distinction between these terms? If not, you are not alone. They tend to be the most confusing. Not just for your clients, but most agents and CSRs as well.

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auto repair shop insurance coverage, auto repair shop insurance cost, auto repair shop insurance application, auto repair shop insurance online, self-employed mechanic insurance, auto body shop insurance, mobile mechanic insurance cost, mechanic garage insurance

In short, the difference between garage liability coverage and garage keeper coverage is the difference between liability insurance and physical damage insurance. The first covers the insurer’s liability for operations and autos and the second covers the customer’s vehicle damage. All garage risks require both coverages to properly insure their loss exposures. The key points apply to the dealership as well as service risk.

Think of it this way:

A customer who buys a vehicle from your client brings it to many places with mechanical problems. To see what was happening, a mechanic drove the car into a test drive and hit another vehicle in the process. He injured the motorcyclist in the other car. He also totalled the test-driving customer’s car.

Other vehicles and its driver are covered by a garage liability policy. The customer’s car is covered by garage keepers.

Now, although it seems quite cut and dry, the complexities of different forms, words, and interpretations can create confusion where.

For this blog, we are going to dive a little deeper into the responsibilities of the garage. We will do the same for garage keepers in the second part of this series.

Garage Liability –

Garage liability insurance is an absolute necessity for your auto clients.

According to the very definition of garage liability, coverage, in a sense, is equivalent to a combination of a commercial auto form with a commercial general liability form, including products and complete operation. Although the “Garage Coverage Form, CA 00 05,” has been revised several times, the basic architecture has not changed.

The second section of the form is divided into two parts: garage operation other than a covered auto, and garage operation covered auto.

The purpose of this policy is to cover bodily injury or property damage caused by an accident arising from a garage operation. The policy defines garage operations as ownership, maintenance, or use of location for garage business. This includes owning, maintaining, or using the auto. Types of covered autos are defined in Section I, but for an auto dealer, you usually cover all proprietary autos, as well as non-proprietary autos used in the garage business (usually operated or stored in vehicles).

The definition expands the scope of coverage by adding a “catch-all” phrase. It says: “Garage operations include all operations necessary or ancillary to the garage business.” The term is often open to interpretation by insuring carriers Auto.

Also, consider the definition of auto. This definition is simple but still broad. The policy states, “Auto means a ground motor vehicle, trailer or semi-trailer.” Unlike CGL and commercial auto forms, there is no mention of licensed autos, number of wheels, mobile equipment, or anything else for use on public roads.
Insurers

Insured, licensed users and anyone else responsible for the insurer’s work is named by the insurers for the covered autos. Insurers do not include auto owners who have borrowed or rented, employees who use employee-owned vehicles, anyone who works in the auto business, dealership customers (if they have no insurance), our partners when using partner-owned vehicles. For garage activities other than auto, the insured’s name includes the insured and the named insured’s partner, employee, director, or shareholder while working under their responsibilities.
Exclusion

Now, for the exclusion. Excluded from coverage are: expected or intentional injury, contractual liability (excluding “insured contracts”), workers’ compensation, employee compensation and employer liability, coworkers, leased autos (when customers drive their cars without rented autos), as well as care, Custody or control. Also excluded from coverage are contamination, racing, watercraft or aircraft, defective products, work done by you, loss of use, product recall, war, and alcohol liability. Note that “personal injury” or “ad injury” coverage must be added with approval.

Pay attention to Exclusion No. 7 – Exclusion of care, custody, or control. It does not involve loss of property: (d) property under the care, custody, or control of the insured. Reading this exclusion, it becomes clear that customers have problems with vehicles. Any car left with the garage business for repairs is not covered based on this exclusion involving storage or even a simple test drive. Keep in mind that third-party claims are covered because of the customer’s car, while not the car itself.

What Comes with Basic Auto Shop Insurance?

Assuming you need a fundamental entrepreneurs strategy, think about these inclusion choices:

  • General liability.
  • Commercial auto insurance.
  • Property insurance for your business.
  • Building contents coverage.
  • Worker compensation.
  • Towing liability insurance.
  • Damage to customers’ cars and possessions.
  • Crime insurance.

Choices Options for Your Auto Repair Shop Insurance –

Assuming you need to ensure you have all the right protection for your business, these choices might be significant:

  • ENOL – covers employees’ vehicles used in service to your business. ENOL means employer non-owned liability.
  • Business interruption coverage – suppose your shop can’t operate for weeks or months after major damage from a storm. This insurance will help to keep you in business.
  • E&O – errors and omissions can cover many mistakes you or your people make, resulting in customer damages.
  • Umbrella liability for businesses – additional liability protection.
  • Transporter and dealer plates – some insurance agencies offer these services.

The Best Insurance Companies of 2022 for Auto Repair Shop insurance

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