At West Bend, we’re proud of our broad base of knowledge when it comes to understanding commercial risks. Over the years, we’ve developed extensive expertise of certain risks and the skills needed to underwrite them. Our underwriters know and understand what coverages are necessary to protect these businesses, such as auto services.
When you’re looking into insurance for your auto service business, here are some coverages to consider:
Business Income – Actual Loss Sustained: If a covered loss closes your auto body business indefinitely, during the recovery period, West Bend will pay the lost revenue, based on projections and the last year’s revenue, up to 12 months, minus any applicable deductible.
Broad Form Products and Completed Operations eliminates the liability exclusion for property damage to your products and work performed. A $250 deductible applies.
Garagekeeper’s Coverage – Actual Loss Sustained provides coverage for damage to autos while they’re at your auto repair shop. There’s no stated limit and the deductible would apply.
Equipment Breakdown Coverage provides coverage when equipment, like lifts, compressors, and diagnostic equipment, breaks down suddenly and accidentally as a result of a covered cause of loss. It pays for the cost to repair or replace the damaged equipment, as well as the costs you incur to restore business operations. A deductible applies.
Employment Practices Liability Insurance provides coverage for claims brought against you due to alleged discrimination, sexual harassment, wrongful termination of employment, and breach of employment contract. These types of claims, brought by employees, former employees, or potential employees, can be costly. Claims against employers can result at any time, from the pre-hiring process to the exit interview, and even from individuals who weren’t hired or who worked for only a few days. A deductible applies to this coverage.
Let’s take a look at some claim scenarios to see how these coverages would work:
An auto repair shop (insured), replaces a customer’s transmission. While the customer was driving the vehicle, they encountered some shifting problems. After taking it back in, the body shop checked the transmission fluid and realized this was overlooked when the vehicle was in for prior repair. Normally this claim for damage to the transmission wouldn’t be covered because of the “damage to the insured’s product” and the “damage to the insured’s work” exclusions. With Broad Form Products and Completed Operations endorsement, however, the cost of the transmission replacement would be covered, subject to the $250 deductible.
Here’s another example. Let’s say a power surge, not caused by lighting, damages electronic and electrical equipment in a service station, including the security camera, an air compressor motor, automatic doors, and various diagnostic equipment. The service station was closed for six weeks. The cost of repairs is $46,460 and the business income loss totals $24,655. This brings the total paid loss to $71,155. Normally, electrical arcing would be excluded under the property coverage. With equipment breakdown, artificially-generated electrical current would be covered. A deductible applies.
Always talk directly to your independent agent to learn more about West Bend and find out which coverages suit your auto body shop business best.