Im looking to open a tire shop for tractor trailers, to small vehicles. Im in the process of writing a business plan and doing projections for the first 4 quarters. I was wondering, what kind of insurance would a shop need? Maybe a rough estimate on the price?? doesnt have to be exact, but just to give me some idea. Thanks!
Insurance on a Tire/mechanical Shop
- Thread starter ak22801
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AUTOMOTIVE SALES AND SERVICE
INCLUDING: Automotive Accessories • Armored Car Service • Automobile Dealers • Automobile Dismantling • Automobile Rentals • Automobile Repairs • Automobile Sales and Service • Batteries • Car Washing • Farm Equipment Dealers • Filling Stations • Garages • Gasoline Stations • Motorcycle Dealers • Painting (Automobile) • Parking Lots • Recreational Vehicle Dealers • Snowmobile Dealers • Tire and Battery Shops • Truck Rentals • Used Car Lots
Automotive sales and service is a broad category filled with a variety of operations involving the sales, service, parking, storing and rental of automobiles, trucks and recreational vehicles. The category presents a considerable number of exposures. Liability insurance for these operations is a major consideration but property insurance is equally important. Property of others in the care, custody and control of the insured must also be protected.
Package Policies
Package policies are the most convenient way to combine coverages. Because most automotive sales and service operations do not qualify for a businessowners policy, the package policy should be considered. A few insurance companies permit automobile coverages to be included in the package but most still require automobile-related coverages be written as separate or monoline policies. Some insurance companies provide premium discounts on all lines except auto when a garage policy is written in place of the automobile and general liability coverage parts.
Businessowners Policy (BOP)
Commercial Package Policy (CPP)
Property Coverages
Automobiles and their parts and accessories represent the primary items of personal property needing coverage. Many automotive businesses do not own the buildings they occupy but do have long-term leases and have invested money in improvements and betterments to those buildings, such as hoists and lifts. A comprehensive property inventory helps in determining the items to be classified as building, business personal property and improvements and betterments. Fire caused by flammable liquids and theft of valuable inventory are the two very important and common causes of loss that must be covered. Time element coverage should not be overlooked, particularly business income from dependent properties. This is because many automotive sales and service businesses depend on only a few or a limited number of suppliers and/or customers.
Types of Property
Building
Business Personal Property
Personal Property of Others
Improvements and Betterments
Property Coverage Forms
Building and Personal Property Coverage Forms
Builders Risk Coverage
Commercial Output Policies
Equipment Breakdown Protection Coverage (AKA Boiler and Machinery Coverage)
Legal Liability Coverage
Property Coverage Options to Consider
Debris Removal Coverage
Ordinance or Law Coverage
Outdoor Trees, Shrubs and Plants Coverage
Utility Services–Direct Damage Coverage
Valuation Options
Peak Season Limit of Insurance
Replacement Cost
Value Reporting
Time Element Coverages
Business Income with Extra Expense Coverage
Business Income without Extra Expense Coverage
Extra Expense Coverage
Leasehold Interest Coverage
Time Element Coverage Options to Consider
Business Income from Dependent Properties Coverage
Ordinance or Law Increased Period of Restoration Coverage
Utility Services–Time Element Coverage
Inland Marine Coverages
Electronic data processing (EDP) coverage should be seriously considered when insuring diagnostic equipment and other computer-based property in the automotive sales and service category. A scheduled property coverage form might be considered for property frequently moved to and from off-site locations. The business personal property limit should be reduced when property is written on inland marine forms in order to eliminate both unnecessary duplicate coverage and duplicate premium charges. The inland marine perils or causes of loss are generally equal to or better than the special causes of loss form that applies to property coverage. Some inland marine forms even include earthquake and flood coverage.
Accounts Receivable Coverage
Contractors’ Equipment Coverage
Difference in Conditions (DIC) Coverage
Equipment Dealers Coverage
Floor Plan Coverage
Motor Truck Cargo Legal Liability Coverage
Scheduled Property Coverage
Signs Coverage
Transportation Coverage
Valuable Papers and Records Coverage
Crime Coverages
A number of coverages are available under the commercial crime coverage form and policy. One or more can be selected by indicating a limit on the declarations. While all the coverages may be appropriate for a given automotive sales or service operation, employee theft coverage should always be at the top of the list. Inside the premises-theft of other property coverage may be a cost effective way to cover theft of inventory. This is because there is no coinsurance clause. As a result, the insured can choose a specific coverage limit instead of taking a required higher limit under a business personal property form with special causes of loss coverage for considerably higher premiums.
Computer Fraud Coverage
Employee Theft Coverage
Forgery or Alteration Coverage
Funds Transfer Fraud Coverage
Inside The Premises–Theft of Money and Securities Coverage
Inside The Premises–Robbery or Safe Burglary of Other Property Coverage
Money Orders and Counterfeit Money Coverage
Outside The Premises Coverage
Crime Optional Coverages to Consider
Clients’ Property Coverage
Employee Theft and Forgery Policy
Extortion Coverage
Inside The Premises–Robbery or Safe Burglary of Money And Securities Coverage
Inside The Premises–Robbery or Burglary of Other Property Coverage
Inside The Premises–Theft of Other Property Coverage
Lessees of Safe Deposit Boxes Coverage
Securities Deposited With Others Coverage
Unauthorized Reproduction of Computer Software by Employees Coverage
Commercial Liability Coverages
Automotive sales and service operations use commercial general liability coverage forms to provide protection from third-party lawsuits as a result of the operations of the business. Automobile dealerships normally use a garage coverage form to provide this protection.
Commercial General Liability (CGL) Coverage
Employee Benefits Liability Coverage
Employment-Related Practices Coverage
Owners and Contractors Protective (OCP) Liability Coverage
Commercial Auto Coverages
Automobile dealerships use a garage coverage form to insure both automobile and general liability exposures. Other types of automobile sales and service entities will use the general liability coverage for the operations coverage and automobile coverage forms for auto-related exposures including damage to customer's vehicles.
Auto Medical Payments
Business Auto Coverage
Collision Coverage
Garage Coverage Form
Garagekeepers Coverage
Hired Cars
Leasing or Rental Concerns–Contingent Coverage
Leasing or Rental Concerns–Conversion, Embezzlement, or Secretion Coverage
Nonownership Automobile Coverage
Uninsured/Underinsured Motorists Coverage
Vendors Single Interest Coverage
Workers Compensation Coverages
By law, employers are required to provide coverage for injuries sustained by their employees while on the job. Most employers purchase workers compensation policy to satisfy this requirement but it is not the only option. An automotive sales and services operation with employees is not exempt from this requirement and must purchase the necessary coverage. If the business hires an individual and calls that individual a subcontractor, doing so is not a shield if it is later determined that the individual is, in fact, an employee.
Workers Compensation and Employers Liability Coverage
Excess Workers Compensation Self-Insurance Bonds
Stop-Gap or Employers Liability Coverage
Excess and Umbrella Coverages
Motor vehicles can cause considerable injury or damage to both people and property. Because it is not readily predictable who may be injured or what may be damaged, higher insurance coverage limits are very important to all businesses in the automotive sales and service category.
Excess Liability Coverage
Umbrella Coverage
Specialty Coverages
As automotive sales and service businesses grow larger, they may intentionally or unintentionally take on additional exposures not covered by most standard insurance forms. The following coverages may apply to these businesses:
Property and Casualty Coverages
Business Legal Expense Coverage
Directors and Officers Liability Coverage
Environmental Impairment Liability Coverage
Export Credit Insurance Coverage
Fiduciaries Liability (Pension, Welfare And Employee Benefit Funds) Coverage
Identity Theft Insurance Coverage
International Insurance Coverage
Internet (Cyberspace) Liability Coverage
Pollution Liability Coverage
Risk Retention Group Liability Coverage
Solar Energy System Coverage
Tax Liability Coverage
Underground Storage Tank (UST) Liability Coverage
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- Thread starter
- #3
Thanks for the reply, that was very informative. Which of these are required by law? I want to be as safe as possible, but I am presenting my paper work to the bank, and they need to know what the bare minimum is. I will go above what is required by law, but what MUST be insured? Just my workers?
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Guest
Guest
HAHA, you need to go sit down with an agent to go over all this, tire shops can be in depth and it will vary on what all exactly you will do.
Someone will be more than happy to sit down with you as this will be a decent premium for them,
Do you own the building, renting? Driving to sites or they come to you?
I could ask you 50 more questions and come up with a few more.
Go to an independent agent who will shop this to many different companies, then they should find you the better rate, and in reality, this will probally cost more than you think it will, so I would get a quote soon so you can plan and budget for it.
Someone will be more than happy to sit down with you as this will be a decent premium for them,
Do you own the building, renting? Driving to sites or they come to you?
I could ask you 50 more questions and come up with a few more.
Go to an independent agent who will shop this to many different companies, then they should find you the better rate, and in reality, this will probally cost more than you think it will, so I would get a quote soon so you can plan and budget for it.
- 1,473
Your best bet is to call an independent agent that specialize in commercial ins. What state are u in. There may be an agent on this site that can help u.
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Guest
Guest
The 5000 post guys wanted content in the comments, did i do good? LOL
That is from rough notes, you guys subscribe to that?
That is from rough notes, you guys subscribe to that?
- Thread starter
- #7
You are going to want general liability and garage keepers liability plus property casualty coverage on your building and equipment. Also automotive coverage if you have any business vehicle. You will also need worker compensation if you have employees.
A company that offers good competitive coverage is Auto-Owners. Ohio Casualty is another. Find an independent agent that writes this multiple carriers is your best coverage option although Zurich and Federated are captives that write this market.
It is hard to guess at costs because different parts of the country are more expensive. If you are not on the east or west coast but somewhere in between I would think that coverage would run you $6,000 or less depending on a lot of factors.
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You are going to want general liability and garage keepers liability plus property casualty coverage on your building and equipment. Also automotive coverage if you have any business vehicle. You will also need worker compensation if you have employees.
A company that offers good competitive coverage is Auto-Owners. Ohio Casualty is a nother. Find an independent agent that writes this multiple carriers is your best coverage option although Zurich and Federated are captives that write this market.
If you are not on the east or west coast I would guess that coverage will run you less than $6,000 but it all depends upon location and coverage.
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- Thread starter
- #9
Thank you! This is what I was looking for
Good luck with this venture. What state are you located in?
