Are you looking to open an auto body shop for the upcoming year? Besides having a business plan, it is crucial to look into the proper coverage. For such a specialized company, it is important to look into specific coverage: garage insurance.
There are a few specific coverage options for this policy, including: garage keepers liability, general liability, property, auto and workers compensation. So what will you need exactly to complete a garage insurance quote?
Garage keepers liability: In order to figure out this number, one must calculate how many customer cars will be at your facility times the average value. For example: for a shop with 10 customer cars with an average value of $10,000 there would need to be a limit of $100,000.
General liability: This number is based on sales, which means one would need to figure out what the annual anticipated sales will be.
Property: This coverage should include your rental space, tools, spray booths, lifts, machinery, etc. So that an underwriter may properly assess the exposure, one would need ALL information relative to the building (e.g., sq. ft, construction, year built, the year that updates to the roof, electrical, heating and plumbing were performed) whether or not you own or rent.
Auto: If you need this coverage, it is crucial to put together information such as the drivers, names, DOB and license numbers. It will provide coverage for any company-owned vehicles and any repair plates.
Workers compensation: This policy is estimated on the payroll for the shop employees and any clerical staff that a company may have. Remember, this is a separate policy but an imperative one.
Once you have put together all of this information, you are well on your way to being 100% covered with garage insurance. Before going ahead and opening your auto body shop, be sure to check with the state about special requirements in order to register your shop. Other than that, we wish you the best of luck!
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