As a provider of Texas business insurance for more than ten years, we have worked really hard to hone our skills in order to provide the best insurance recommendations to our clients. This especially applies to auto repair shop insurance. We consider it one of our specialties. Today we’ll share one aspect of auto repair shop insurance that is incredibly important, but often overlooked by many commercial insurance agents.
When the owner of an auto repair shop sits down with his insurance agent to review his insurance policy there are many coverages discussed. In most cases the insurance agent will talk to the shop owner about General Liability, Garage Liability, Garage Keepers Liability, Commercial Property and Commercial Auto policies. It sounds comprehensive, right? As an expert in the field of auto repair shop insurance, we would have to disagree.
Coverage of Employees’ Tools
Employees’ Tools Coverage is incredibly important and far too often auto repair shops are operating without having this particular type of coverage. Employees’ Tools Coverage provides property coverage for the tools that are owned solely by your employees, but stored at your auto garage. This coverage is necessary since your standard property policy excludes “property of others” from coverage.
Once this is mentioned, most auto repair shop owners recognize the importance of this coverage immediately. Unfortunately, far too many commercial insurance agents overlook it and it ends up costing their clients.
Here is a quick list of costs for automotive tools:
- 48” Metal Tool Cabinet – $2,980
- Alternator/Starter Bench Tester – $4,540
- Impact Wrench – $940
- Manual Battery Charge – $540
Just four tools can cost over $9,000. If you have 5 mechanics in your shop then you are looking at well over $50,000 in tools! If you don’t account for these tools on your insurance policy you could be out of luck if there is ever a fire or theft.
Talk to Your Commercial Insurance Agent
Talk to your employees and have them make a record of the total value of their tools. Once you have the total value, call your commercial insurance agent and make sure you have adequate coverage. If you’re unsure whether or not your current agent is making sure your is properly insurance or you need auto repair insurance, please do not hesitate to reach out to our Texas business insurance office.