Repair Shop Insurance in the Greater Toronto Area
Years ago, many car owners in the Greater Toronto area made their own repairs. However, with the advent of microprocessors and computerized equipment, it has become much harder. In fact, this is a great time for auto repair services as more as more car owners are turning to professionals for help with their vehicles. However, with the increase in business also comes an increase in business risks and the right repair shop insurance is essential for success. If not, your business could be facing an untold amount of problems. Let’s look at the case of James L.
James owned a successful auto repair service located between Toronto and Mississauga. The business grew from his home garage to a large facility with twelve service stalls. James always carried automotive shop insurance, but to save costs he only had minimal coverage.
Many people in the GTA knew about James’ repair shop and its reputation for honest and dependable work. Just last year, there were so many customers, he had to open the shop on weekends, just to keep up with the increase in business. However, you never know what can happen.
James’ wife Ellen had a bad dream about the repair shop and told him he needed to increase his auto shop insurance, because something bad was about to happen. At first he laughed but when she insisted, he finally gave in to humour her.
A couple of weeks later, an employee needed to go to the warehouse for auto parts, but the truck was not running. To save time and trouble, he drove his own car to pick up the parts. On the way back, his car hit a slick spot in the road and smashed into a brand new SUV limo, totalling it. The damage and injury claims came to over $270,000.
Had the accident happened three weeks earlier, James would have been ruined. However, because his wife insisted he see an experienced risk management professional for garage keepers insurance, he had the coverage he needed. The coverage option was called ENOL and it provided liability insurance to his employees when they use their own vehicles. Needless to say, James never doubted his wife’s intuitive feelings after that incident.
What is Automotive Repair Shop Insurance?
Repair shop coverage is specifically designed for automotive services. It can make the difference between staying in business and going under due to financial losses.
Who Needs Auto Shop Insurance?
Does your business repair vehicles? Maybe you perform a variety of maintenance procedures. Every kind of automotive business needs to protect its interests by covering as many risk factors as possible, and the best strategy involves taking out the right insurance. These businesses should consider this coverage:
- Auto upholstery shops
- Auto repair garages
- Auto Body shops
- Mobile repair service
- Auto customizing or speed shops
- Oil change services
- Service stations
- Car washes
- Brake services
- Car dealerships
- Valet services
- Muffler shops
- Any business that improves or repairs vehicles
What’s In a Standard Garage Keepers Insurance Policy?
A standard policy or OAP4 should include the following options. However this should be considered minimal coverage and may not be sufficient.
- General liability insurance
- Auto insurance – in Ontario you need 3rd party liability, direct compensation property damage (DCPD), accident benefits, and uninsured auto coverage.
- Care custody control – the vehicles you work on are your responsibility and they should be fully insured while on your premises.
- Business property insurance – this protects your offices, showrooms, garage areas, waiting rooms, and any property you own.
- Building contents – if you are renting or leasing you need to insure your building’s contents.
- Auto liability for test driving vehicles.
- On hook liability – covers vehicles while they are being towed to your shop or place of business.
Repair Shop Insurance Options
These options may be important for your business:
- Umbrella liability insurance
- Business interruption
- Flood insurance
- Professional liability – a mechanic forgets to tighten an oil drain plug and results in a ruined engine. These incidents are covered by your professional indemnity insurance.
- Cyber liability
- Vehicle stock
- Dealer plates
- Courtesy cars
- Service plates
- Storage
Where to Find the Best Garage Keepers Insurance
Multi risk Insurance Brokers is one of the most trusted sources for commercial and private insurance lines in the Greater Toronto area. We have removed all the hard work and hassles from getting insurance for your automotive business. For example, when you come to us, your work is done and we take over. Your agent checks with all the companies we do business with to find the lowest rates and right coverage options for your business.
With Multi risk Insurance Brokers on your team, you have highly trained risk management professionals available to you. There is no reason to spend all your time checking into insurance when we are here to do that for you.
To find out about an auto shop insurance quote, fill out our quote form and we’ll contact you. For further details or answers to your insurance questions, call 416-224-2800.