Does Your Garage Have Defective Product Coverage in Place?

As the owner of an auto body and repair shop, it is important to have a full understanding of your coverage. If not, you may find that your auto body and repair shop insurance has exclusions.

A common exclusion to be aware of: defective product coverage. Let’s take a look at a scenario…

Your auto body shop has installed a new engine in a client’s vehicle. A week later, you find out that the engine caught fire while the client was on a road trip and destroyed the entire vehicle. The final verdict: there was a defective part in the engine. The client comes back to your shop asking to be reimbursed for both his vehicle and the defective engine.

The first thing you may do is turn to your insurance agent to report the loss. However, many auto body shop owners will be DENIED because there is no coverage in place for a defective product. Why is this? Chances are your policy contained a Defective Products Exclusion, stating “Property damage caused by any of the insured’s products because of damage caused by a defect in the product or any part of it is not covered.”

Are you aware of the exclusions on your garage insurance policy? Our experts at Wolpert Insurance would be happy to go over your existing policy and make sure you are 100% protected from all types of scenarios, including this one. Just give us a call at (800) 299-6819!


Avoid a Faulty Workmanship Claim

As the owner of an auto body shop and garage, it is important to understand that your business could face a faulty workmanship claim at any time. While both you and your employees are more than likely highly skilled professionals, mistakes may still happen. Have you considered preparing for a faulty workmanship claim by purchasing the right insurance?
Many times, coverage will NOT protect you from faulty workmanship. Take this case for example:
Your shop repairs a water pump for a client. Once it is complete, the client goes about their business. A few days later, the client notices that a warning light has turned on, and then another and another; the car suddenly stops running. The outcome: your shop has improperly installed the water pump and the motor has stopped running due to overheating.
Without the proper garage insurance in place, this type of scenario may not be covered. Coverage for this kind of loss may differ depending upon a given insurer’s interpretation of a garage policy exclusion. For example, the policy that your shop may have may contain an exclusion which denies property damage for “faulty work.” For more information on how to protect your shop from a faulty workmanship claim, contact our agency. Our experts at Wolpert Insurance would be happy to speak with you and make sure you are always 100% protected.

Does Your Garage Insurance Cover Boats and Watercrafts?

As the owner of an auto body and repair shop, it is important to be aware of the types of damages and accidents that are covered under your auto repair shop insurance policy. Now that we are well into the summer season, it is not uncommon for a customer with a boat to stop by. Whether a customer is looking to have their fiberglass hull repaired or simply need a boat tune-up, it is important for you to be 100% sure that your company will be covered if something were to go wrong.

The truth is, many repair shops may not actually HAVE the proper coverage in place when it comes to boats and watercrafts. Here is a quick example:

A customer comes into your shop looking to have their fiberglass hull repaired. You fix the hull; the customer pays, thanks you and is on their way. Later on, the customer is having a good time on their boat when suddenly, the hull begins to shake. Before you know it, the hull shatters and the customer does not survive the accident. At this point, a claim will be made against your boat shop because of the faulty repair. You assume that you are covered, but oh no… your garage insurance policy has a specific exclusion pertaining to watercrafts!

Our own Robert Mucci has recently had an online garage insurance article published by Tire Business magazine, “Repair Boats and You Could Get Sunk.” This article goes in depth about this type of scenario, zoning in on the specific “language” that exists in most Garage Keepers Liability coverage. Most times, the policy will state: “We will pay all sums the insured legally must pay as damages for “loss” to a “customer’s autos” left in the insured’s care while the insured is attending, services, repairing, parking, etc…” The key phrase in this statement: customer’s auto. “Customer’s auto” pertains to land motor vehicles, trailers or semi-trailers. Boats and other floatation vehicles not included!

At Wolpert Insurance, we want to make sure this type of scenario does not happen to you. If you are not sure what your auto repair shop insurance policy protects you from, it is best to ask the experts. Together, we can design a unique policy that will cover all types of vehicles that come into your shop, whether a classic car or a large boat. Contact us for more information today!

Protect Your Shop from a Data Breach with Cyber Liability Insurance!

Here is a scenario: you rent out a car to a customer. During this process, you take their name, address, credit card information and maybe even a copy of their driver’s license or social security number to keep on file. All sensitive information is stored in locked file cabinets or maybe even the company computer system that is password protected. A few days later, you realize that your system has been hacked into and customer data has been stolen. Or maybe you suffered a break-in and the file cabinets have been ripped open. You are now a victim to a data breach.

If you are a Massachusetts business then you do business in a state with one of the toughest laws in the country when it comes to protecting personal information. But MA is not alone; CT, RI, NH, and 42 other states have joined in protecting this information as well. Why is this important to know?

Because should you suffer a data breach you may find yourself having to comply with not only the tough standards as set forth in MA but the nearby state laws as well when that consumer or employee resides in another state.

So what constitutes personal information in MA? A person’s first and last name (or first initial) combined with any one of the following:

• Driver’s License Number

• Credit Card or Bank Account Number

• Social Security Number

Who do you notify and how?

• MA Attorney General’s Office

• MA Office of Consumer Affairs and Business Regulation

• Each affected or possibly affected resident

Interestingly enough the notice to consumers may require certain information that is different for every state. What a nightmare. Who pays for all this? Not to mention the bad publicity.

The first thing that should come to mind when asked this question is: does my garage insurance program include cyber liability coverage? If so, this process just got a whole lot easier. Having cyber liability in place will make sure you are compensated for unexpected expenses that are associated with a breach. These costs will directly affect your business, which may include:

• Investigation expenses

• Notification expenses

• Legal fees and court costs

• Public relations expenses

• Time spent away from business in order to “manage” the data breach

• Payment of judgments

• Loss of customers!

As you can see, the expenses will add up. Without cyber liability insurance in place, your shop may not survive this process.

To add cyber liability insurance to your garage insurance plan, contact our agency. We would be more than happy to discuss this coverage and provide you with a free quote!


Lower Your Risks by Updating Shop Equipment!

As the owner of an auto body and repair shop, you understand the importance of maintaining a safe work environment, keeping up with industry-specific rules and regulations and updating your auto repair shop insurance. It is these three things that will allow you to run a smooth and secure operation.

Speaking of safety and security, when is the last time you updated the equipment in your auto body shop? Garage shop owners and employees who continue to use old equipment and methods may find that the chance of an injury or accident is much greater than those with new and improved tools. Why?

• New and improved equipment may have better safety features, ultimately lowering the risk of accidents and claims.

• Older equipment has a greater chance of malfunctioning than new equipment.

• Chances are, new equipment will be much more efficient and can possibly save you time and money.

• Using the newest tools will look professional and may bring more business to your shop.

These days, many auto body shops are taking a “greener” approach. Besides benefiting the environment, such an initiative will be healthier for your employees, too. New equipment can reduce toxic emissions produced in your shop. Once you replace old equipment, you may find that employees are suffering less and in turn, be able to keep workers compensation claims to a minimum. In the end, this will ensure that your premium remains low!

For more information on reducing risks in your auto body shop, contact our agency. We would be more than happy to share our knowledge in this unique field. We would also be glad to provide you with a free auto repair shop insurance quote!