Sunday 27 May 2018

Important Aspects Considered When Computing Auto Repair Shop Insurance Cost

By Dorothy Ward


Automotive repair shops are one of the important investments an entrepreneur can make. This is a place where broken vehicles are fixed. For one to remain viable in this industry, there is need to acquire an cover. Unexpected incidences may occur which will lead to loss of assets and injuries. A person who has insured their business will not be responsible for losses that will be experienced. The following are various elements which are considered during the calculation of auto repair shop insurance cost.

To begin with, liability insurance. There are severe injuries which may occur while on the premises. The injured persons will claim for compensation for medical costs which will be incurred. The owner will have to ask for the reimbursement from the agency where they insured their business. This aspect must be considered when making calculations because it will be costly for the company when such incidences arise.

Garage keepers insurance. The clients cars must be protected while they are within the premises. There are cases of fire outbreaks which will burn down all the vehicle in the facility. The owners will demand for new models of the same make as the ones which has been burnt. Expensive tools may also be stolen from the vehicle. Such issues will have to be covered by the agency which has ensured the business.

Auto insurance cover. Test-driving the customers car after servicing may be done by the employees. Also, spares may be located at a distance which will require the worker to go for them. They may get accidents in the process leading to damage to the clients vehicle or physical injuries. The losses experienced in terms of treatments and repair of breakdowns will be compensated by the insurer.

Business interruption coverage. This helps one to remain in operation even if unexpected events occur. When such incidences happen; the business may be destroyed. The owner will be required to pay electricity bills, wages of employees, rent and also taxes. This cover is necessary because the agency will help the owner of the shop in paying such expenses.

Employee compensation. This includes coverage for workers who get job-related injuries. These people usually have injury claims which they ask for reimbursement. These settlements have to be done by the provider. The compensations will cater for medical bills, rehabilitation expenses and also the loss of income.

Policy cover for business property. This insurance protects the assets in the premises where the outlet is located. The settlements should be done when the property of the investor is damaged. This may be as a result of fire outbreaks, vandalism, earthquakes, storms or accidents. Some of the assets include furniture, fence and inventory.

Insurance for equipment. This covers for destructions experienced in the repair shop building. Also, damage of special equipment is covered by this policy. The damages to tools within the repair shop may arise due to fire, mechanical breakdowns or even accidents. Replacement of these items is done by the insurer of the investment.




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