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Your Long Beach, California Auto Body Shop Insurance program needs to have the right coverage in place to ensure you and your company are assets are protected correctly. We are an expert when it comes to insuring Auto Body Shops throughout California. Buying insurance for your auto body shop doesn’t have to be a complicated process. Within a few minutes we can provide you an insurance quote from multiple insurance carriers who specialize in Auto Body shop Insurance. The insurance agent’s at Integrity Now Insurance Brokers will take the time to ensure that you have all of the policies your business needs to operate smoothly. Many business owners assume that purchasing a standard Business Owners Policy (BOP) is the only type of insurance they will need, but this is not the case. Although BOP’s are useful for most businesses, it is also wise to purchase other business insurance policies to go along with a BOP that meet the specific needs of your business. One main coverage an auto body shop needs to be concerned with is Garage Keepers Liability Coverage.
What is Garage Keepers Liability Coverage for Auto Body Shops
Auto body shop companies that are in the business of storing customer vehicles need to be protected. There are a number of things that can happen in which your company can be found liable while you are in control of a clients property.
Garage Keepers Liability coverage is designed to offer protection for business owners who offer towing services, operate service stations or auto body shops. This coverage protects customer vehicles while they are kept at the business location for parking, storage or to perform maintenance or services in the event of fire, theft, vandalism, lightning or explosion. There are two types of Garage Keepers Liability coverage that are available:
- Direct Primary Coverage – Coverage for a business, even if the loss is not the business’s fault nor are they legally liable.
- Excess Coverage – Additional coverage over the limit of coverage that the vehicle owner/customer has from his/her own insurance company. This will automatically pay if the customer does not have Automobile Insurance.
Garage Keepers Liability Coverage is Designed for:
- Automotive and motorcycle dealers
- Auto Body Shops
- Service stations
- Auto detailing
- Paintless dent removal
- Upholstery detailing
- Diagnostics and minor auto maintenance
- Windshield repair and replacement
- Automatic Transmission Shops
- Restaurants, hotels and special event operations with valet parking
- Private parking lots and structures and airport parking lots
- Jewelery Repair Stores
- Dry Cleaners
- Car washes
- Other businesses that accept custody or control of vehicles belonging to others for a fee
Limits and Deductibles
- As it is related to auto body shops, you will need to determine coverage limits by considering the average value of vehicles in your care, custody, and control multiplied by the average number of vehicles at any given time. For instance, if the average value of your customers’ vehicles is $25,000 and you tend to have 10 vehicles on hand, then you should select a limit of no less then $250,000.
- You must select a per-vehicle deductible (generally $500 or $1,000) that is to be paid by you in case of an incident. Then, the insurance carrier will covers the remaining amount of a covered loss, up to your selected insurance limits.
Some of the most common exclusions found in an auto body shop insurance policy are:
- Contractual obligations
- Theft by the insured
- Defective parts or faulty work
- Loss to sound reproducing equipment, unless it is permanently installed
- Loss of CDs and tapes
- Loss to sound receiving equipment (CBs, mobile radios and telephones), unless it is installed in the dash or console
- Radar detection equipment
What coverages should your company consider purchasing:
- General liability
- Workers’ compensation
- Garage Liability Insurance Coverage
- Umbrella liability
- Directors’ and officers’ liability
- Employment practices liability
- Auto liability and fleet
By selecting the correct amount of Garage Keepers Insurance for your auto body shop and any of the other needed insurance coverage listed, this will help adequately protected your business from a major financial hardship to your company in the event of a major loss. Contact us today for more details. (562) 606-1030
Integrity Now Insurance Brokers, Inc
4182 Viking Way, Suite 203 Long Beach, CA 90808