Tag: Auto Repair Shops

Unique Commercial Insurance Risks

8 Industries with Unique Commercial Insurance Risks

Commercial Insurance is a necessary evil that all successful businesses need. Depending upon the state and industry you operate in, your business may face different commercial insurance risks. Because of these unique commercial insurance risks, your business may need just a small amount of coverage or a substantial amount of coverage to properly cover your business.  Regardless of the amount of insurance you choose, you need to make the best decision for your unique business. That can only be done with the help of an experienced insurance agent. Taking some additional time to discuss the day-to-day operations of your business can go a long way towards covering your business. Here are eight industries that have unique risks not present in most businesses.

 

Ridesharing Vehicles

As Ridesharing Companies have grown in popularity, insurance carriers have expanded their offerings to meet the demand for coverage. Normally, rideshare insurance covers personal use and has an add-on for part of the time drivers are signed in to a ridesharing app. The coverage has many grey areas, because of the newness of the profession. Partnering with an experienced insurance agent is highly advised and do not rely solely on the coverage offered by the companies.

Hotel Motel Industry

As with any business in the Hotel Motel Industry, businesses face many risks that can damage the company if not properly prepared for. Depending on all the offerings of your location, there may be a substantial difference in the types of insurance you need. If you offer a restaurant, there will be specific commercial insurance risks associated with that area of the operation. If that restaurant serves alcohol, there are additional risks. It is important for a hotel owner to be prepared for all commercial insurance risks that may arise.

Lawncare & Landscaping

Commercial Insurance Risks in the Lawncare & Landscaping Industry arise from installation, service, and attractive nuisance at the job site. Depending upon the specifics of your operation, work hazards may include injury or damage from debris thrown by power mowers, trimmers, and other equipment. The application of lawn chemicals presents additional commercial insurance risks. Contractors who do not obtain and keep proper licensing and certification for chemical applications create a serious liability exposure to themselves.

Non-Profit

Professionals who work in the Non-Profit Industry, for the most part, go in to this sector to be a part of something greater than themselves. Most do not anticipate having to manage risk or buy insurance. Interacting with volunteers, part-time employees, donors and at-risk populations brings extremely unique risks to non-profit associations. How effectively a non-profit organization handles commercial insurance risks, will contribute immensely to the success or failure of your organization.

Auto Repair Shops

Auto Repair Shops are different from many other industries because of what they do and what they sell. Some shops only perform oil changes, while other shops do most mechanical work on any vehicle. Other shops might work on niche specific cars and some may even offer retail offerings. Each type of business has its own risks included. Taking additional time to speak long and honestly with an experienced insurance agent is the best way to determine what types and how much insurance your business needs.

Commercial Cleaning

Commercial Cleaning Companies have less premises liability because a majority of their work is performed at a remote site. Damage to the clients property is high in this industry as is the risk of employee theft. Wet and slippery floors can add to the risk of slips trips and falls.  Securing the work site during and after the work is completed is a huge risk for commercial cleaning companies. High turnover among employees in this industry adds to this industry.

Construction Industry

The Construction Industry is a common industry that employs people throughout the country, bit the size and scope of each individual business can bring immensely different risks to businesses within this industry. A family operation that builds starter homes in a rural town may face different risks than a large construction company that works building high rise apartments in major cities. Whether the employees are W2 or 1099 can complicate the risks the business faces. The only way to know for certain if your business is covered to your specifications is to partner with an experienced independent insurance agent.

Day Care Center

A Day Care Center, like many industries, have very unique risks. If there is playground equipment at the location, the equipment should be maintained periodically and that maintenance should be documented. Because the nature of the work forces the employees to work near children who do not have strong immune symptoms, cold and flu are common. Proper hygiene is a must to limit the amount of liability to the children and your employees.

Most businesses in this industry operate at one location, but some smaller operations will operate out of a private residence. State laws determine what types of coverage each business is required to carry. In most cases general liability and workers compensation is the bare minimum a day care center can operate with. In most cases, the business will need additional coverage. Partnering with an experienced agent is the only way to know if you are fully covered.

Auto Repair Shops

Direct Primary vs Legal Liability for Auto Repair Shops

The difference between Garage Liability Coverage and Garagekeepers Coverage is the difference between liability insurance and physical damage insurance. The first (liability insurance) covers the insured’s liability for operations, autos, and the second (physical damage insurance) covers damage to customer’s vehicles at auto repair shops. All garage risks need both coverages to properly insure their loss exposures.

Auto Repair Shops

A Garage Keeper’s Legal Liability policy is intended to cover damage to an auto held in their care, custody, or control while it is on consignment for sale or you are servicing, repairing, parking, or installing equipment into the vehicle. Direct Primary Coverage provides coverage even if the loss is not the insured’s fault and is not legally liable. On the surface, this seems relatively easy to understand.

For Example, a customer’s locked vehicle is in a fenced and locked yard. There is adequate lighting in the yard and the vehicle alarm is armed. The electronics are ripped from the vehicle and there is $25,000 in lost equipment and damage.  Although you are clearly not negligent – and not legally liable – the claim is submitted to my insurance carrier.

With Direct Primary Coverage, the customer – the owner of the vehicle – is paid no matter whose fault it was. You have a happy customer again and your insurance paid for everything. Well that is great until renewal time, when we can assume that the insurance company will raise the Garage Liability premium by a substantial amount because of the claim. That $25,000 claim typically will continue to affect your premiums for three years.

If you had purchased Legal Liability Coverage, the owner of the vehicle would have had to submit the claim to his own insurance company. Your insurance company would not pay anything on the claim – after all, it was not your fault, you were not legally responsible for the damage – thereby saving you thousands in renewal premium increases.

What is the best option to take? If you have repeat customers that represent a significant part of your business, than Direct Primary Coverage may be the best choice. However, if you do business with thousands of different people and have no significant relationship with them, then Legal Liability Coverage may better suit you.

To recap. Garagekeepers insurance refers to coverage for the cars left in your care, custody or control. Direct primary garagekeepers pays for the loss whether you are legally obligated to do so or not and legal liability garagekeepers only pays out if you are legally responsible for the loss. As a result, direct primary garagekeepers coverage is usually more expensive than legal liability garagekeepers coverage. Both of these options have their positives and negatives. Talk it over with your insurance agent and then make a decision on what you feel is the best for your business. Think long-term vs short term on the cost of the policy. Once you take cost out it will help you determine which is actually the best option.