Automotive Shop Insurance in Minnesota

If you are the owner of an automotive services shop in Minnesota, you probably already know more than you want to about the risks your enterprise faces on a daily basis. Liability, theft, vandalism, on-the-job injuries and broken mechanical equipment are probably at the top of your list. Thankfully, there is a foolproof way to protect yourself and your shop from these risks.

While there are many types of automotive shops that provide a variety of services - from oil change shops to tire shops, and from auto repair shops to paint and body shops - most such shops in Minnesota offer overlapping services. For instance, an auto repair shop might offer oil change services, or a paint and body shop might provide tire rotation and balancing. This means insurance services for MN automotive shops might be cheaper than you think.

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Types of Automotive Insurance in Minnesota

Listed below are the most common types of insurance coverages that automotive shop owners in MN usually choose to carry:

General Liability Insurance

General liability insurance usually includes coverage for three areas of your business: premises liability, product liability, and completed operations. When all three are in place, these coverages protect you against losses or liability for accidents or incidents that happen on your premises or to vehicles you are servicing. This type of insurance is especially important for auto repair shops and paint and body shops since this coverage can protect your employees from liability if they are involved in an accident that causes damage to a customer vehicle.

Garage Keepers Liability Insurance

Since many of the vehicles on your property will not be fully serviced the same day they arrive, you’ll need to store them for one or more nights on your property. If anything happens to the vehicle while you’re storing it, you could be liable for any damages that occur, whether from accident, robbery, or vandalism. Garage Keeper’s Liability coverage protects your shop from having to cover these costs. Also, since this type of insurance is especially important for automotive service centers that store vehicles overnight, it may not be a high priority for oil change shops.

Property Insurance

Your customers’ cars aren’t the only thing on your business premises that have value - your tools, offices, and all the products you keep in stock are important too. Property Insurance for your shop protects all this and more, and covers potential losses from a broad array of potential hazards, including theft, vandalism, fire, natural disasters, or even extreme weather events like hurricanes. This type of insurance is universally important for automotive centers in Minnesota, so whether you have a tire shop or a full service auto repair shop you should consider it.

Crime Insurance

The sad truth is that crime is a rising concern in Minnesota, which affects everyone in the automotive services field. Theft and vandalism from outside your store are common enough, but dishonest employee practices, internal theft, and embezzlement are increasingly frequent. Whether it’s your tools and office equipment or the stereo in a customer’s car, Crime Insurance covers the losses incurred from any such event. Like Garage Keepers insurance, this type of policy is especially beneficial for centers that keep cars overnight, such as auto repair shops and paint and body shops, and might be a lower priority for same-day service centers like tire shops and oil change shops.

Paint and Body Shop Workers’ Compensation Insurance

Worker’s Compensation insurance in MN can cover the losses you and your employees face from being injured while at work. Working around automobiles always presents the risk of injury, and worker’s comp covers a multitude of costs associated with such an event. Keep in mind, workers comp isn’t just an important safeguard for your employees, it also helps protect you from having to pay the medical expenses that result from an on-the-job injury.

Equipment Breakdown Coverage

The tools you use in your shop to service automobiles are expensive, you already know that. What you may not know is that you can purchase insurance to help repair them or pay for a replacement if and when they break down. Purchasing brand new equipment is extremely costly, so carrying equipment breakdown coverage can save you a lot of money in the long run. Tire shops and oil change shops in MN might use more expensive equipment to provide service, but auto repair and paint and body shops are just as reliant on working tools, which means this type of insurance is universally beneficial.

Business Auto Insurance

If you or the workers in your shop use a vehicle for any type of business purposes, Business Auto Insurance is a must. Whether you provide mobile services from your auto repair shop or courtesy shuttles from your paint and body shop, or even if you just have to drive down to a local supplier and pick up parts for your oil change shop or tire shop, Business Auto coverage is crucial protection your shop needs.

Business Interruption Coverage

If anything causes you to close your shop for any amount of time, this is considered Business Interruption. This could happen as a result of theft or vandalism, malfunctioning equipment, or just that old Minnesota weather acting up again - whatever the cause, if your shop is closed, you’re losing money. Business Interruption insurance covers your losses when such an event occurs. Since business closure is a bad thing for any type of auto service center, all types of shops should carry it.

Whether you run a tire shop, oil change shop, repair shop, or paint and body shop, having a reliable Insurance plan is a critical part of making sure your business runs smoothly and profitably. You might not be able to control everything that happens in Minnesota, but by having the right insurance you can prevent unforeseen events from putting your business in jeopardy.

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