Automobile exposures may be limited to hired and nonowned for employees running errands to pick up needed supplies. If there are owned vehicles, all employee drivers should have an appropriate driver’s license and their MVRs regularly checked. There should be written procedures for personal and permissive use of vehicles furnished to employees. All vehicles must be regularly maintained with records retained. Towing presents a more serious exposure due to the potential for damage to the vehicles being towed. All tow truck drivers must be experienced. Towing vehicles must be regularly checked, particularly the hoists and tow bars.

If vehicles are rented to customers, the shop should keep a copy of the renter’s driver’s license and proof of insurance. The rental contract should identify all drivers and state that unlisted, unlicensed, or minor drivers are not permitted to operate the vehicle. It should also include a hold-harmless agreement in which renters agree to assume responsibility for the operation of the vehicle to limit the shop’s exposure to vicarious liability only. If a collision damage waiver is offered, the customer’s signature is needed to document whether this was purchased or declined. The customer should also be required to sign a pre-inspection form to minimize disputes when the vehicle is returned with damages. Vehicles that are rented should be inspected and reconditioned before being rented again.

Crime exposures is high for both employee dishonesty and theft of money and securities. Background checks should be conducted on all employees. The inventory must be under the supervision of more than one individual so that there are checks and balances. All ordering, billing and disbursements must be handled as separate duties. Regular audits must be conducted. Money should be regularly stripped from the cash drawers and placed in a safe away from the front door. Irregular drops should be made to the bank to prevent a substantial accumulation of cash on the premises.

Equipment breakdown exposure is high as the business is dependent on its machinery for conducting operations. Replacement parts may be difficult to obtain on a timely basis.

Garagekeepers exposure comes from damage that can occur to customers’ vehicles while in the repair shop’s care, custody and control. Keys to customers’ vehicles should be kept in a locked box to prevent unauthorized access. Proper identification should be required to prevent handing a customer’s car to the wrong owner. Lots must be well lighted, with chains in place to prevent transport. Fences and other security may also be appropriate.

Inland marine exposures are from accounts receivable if the repair shop offers credit, computers to monitor inventory and for diagnostics, goods in transit if parts are delivered to customers, and valuable papers and records for customers’ and vendors’ information. Backup copies of all records, including computer records, should be made and stored off premises.

Personal injury exposures include allegations of discrimination and from apprehending suspected shoplifters, which may result in claims of assault and battery, false arrest or detention, unauthorized or intrusive searches, or wrongful ejection from the premises.

Premises liability exposure is high due to the number of visitors to the shop. Waiting areas should be provided for customers waiting on repairs. Customers must not be permitted in the garage area. To prevent slips and falls, floor coverings should be in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and be well marked, with backup lighting systems in case of power failure. There should be a disaster plan in place for unexpected emergencies.

Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. If the premises is open after dark, there must be adequate lighting and appropriate security for the area. Cars in the parking lot present an attractive nuisance hazard. Chains should be in place to prevent entrance after hours.

Products liability exposure can be high due to the potential for an accident in the event that a vehicle is not properly repaired. There should be a check-off procedure in place prior to release of the vehicle to the customer to prevent its being returned to the customer with vital functions not working properly. If the repair shop directly imports or reconditions items for resale, the exposure increases to that of a manufacturer.

Property exposure is high due to flammables such as lubricants, oils, degreasers, and solvents used in the repair operations. They must be properly labeled, separated and stored away from combustibles. Aerosols and flammable additives contribute to the overall fire load. Welding needs to be evaluated for proper handling of the tanks and gases, as well as adequate separation from the other operations with either a separate room or flash/welding curtains. Tires do not catch on fire quickly; however, when they do burn, the fire is difficult to put out and an oily smoke permeates the entire area. Smoking must be prohibited. All machinery and equipment must be inspected and maintained regularly to avoid wear and tear or overheating losses. Auto parts are target items for thieves. Appropriate security controls must be taken including alarms, lighting, and physical barriers prohibiting access to the premises after hours.

Workers compensation exposures are very high. Brake turning, welding or other repair work must be handled only with appropriate safety equipment, especially eye protection. Lifting of a vehicle by hoists, jacks, and other mechanical means can result in injury should the equipment malfunction. Hoists must be well maintained and procedures in place to prevent vehicles from falling. Workers can slip and fall, or incur back injuries, sprains, strains or hernias from lifting. If the shop sells batteries, leakage or spilling of battery acids can cause burns on contact with skin and respiratory problems when inhaled. Employees should be provided with safety equipment, trained on proper handling techniques, and have conveying devices available to assist with heavy lifting. Employees performing maintenance or repair work on customers’ vehicles should be properly trained.

Coverage for accounts receivable is provided at a limit of $25,000 on premises and $10,000 off premises. The on premises limit may be increased. This coverage is subject to the property deductible in the policy. This coverage protects against loss resulting from an inability to collect accounts receivable due to loss, damage, or destruction of books or records of accounts. The on premises limit may be increased.

Provides coverage to any person or organization when the named insured has agreed in a contract or agreement to name that person or organization as an insured on their policy. Automatically included on a blanket basis. Various other optional additional insured endorsements are available on a scheduled or blanket basis.

This policy conditions amends the General Aggregate Limit to apply separately to each location owned by or rented to the insured.

Coverage for computers is automatically included in the Business Personal Property limit. An additional limit may apply based on the type of business. For example, an additional $40,000 limit applies to auto repair risks. Data restoration that will restore electronic data destroyed or corrupted by a covered cause of loss is included at a limit of $10,000. Higher limits may be purchased.

Business Liability coverage for damage because of property damage to a premises while rented to the insured or temporarily occupied by the insured with permission of the owner is provided at a limit of $300,000 unless a higher limit of insurance is shown in the policy declarations.

Coverage applies for expense to remove debris of covered property and other debris that is on the described premises, when such debris is caused by or results from a covered cause of loss that occurs during the policy period. The expenses are only paid if they are reported within 180 days of the loss or damage. The coverage limit is 25% of the direct physical loss plus $25,000.

Coverage is included for loss or damage to Business Personal Property and Money and Securities resulting from dishonest acts committed by any of the insured’s employee. Coverage limit is $25,000 subject to a $250 deductible. Higher limits may be purchased.

Equipment breakdown coverage applies to loss or damage caused by, resulting from or consisting of mechanical breakdown of your equipment. Also included is damage from rupture, bursting, bulging, implosion or steam explosion of any equipment or appliance. Coverage is included up to the property limit.

Equipment breakdown coverage includes coverage for reasonable costs to make temporary repairs or to expedite permanent repairs or permanent replacement. Equipment breakdown to computer equipment is covered. Data restoration coverage is included up to $100,000. Spoilage coverage is provided for spoilage and contamination of stock due to power outage or breakdown and contamination. The maximum limit for spoilage is $250,000.

$10,000 Provides coverage when someone other than the employee or owner forges a signature on a check or other monetary instrument in order to obtain money that belongs to the insured. Forgery by an employee is covered in the Employee Dishonesty coverage. Higher limits are available.

$25,000 direct primary coverage applies without regard to the insured’s legal liability for loss to a customer’s auto and is primary insurance. Coverage provided: Comprehensive Coverage from any cause except the customer’s auto collision with another object or the customer’s auto overturn. Collision coverage caused by the customer’s auto collision with another object or the auto’s overturn.

$300,000/$600,000 Hired and non-owned auto coverage is included on policies covering offices. For all other risks, the coverage is optional provided the insured does not have any Commercial Auto Coverage in force. Provides liability coverage for the use of a hired or non-owned auto used in the course of business.

Coverage applies for the cost to repair or replace locks or keys at the described premises due to theft of keys from your premises. The limit for this coverage is $500 subject to a per occurrence deductible of $50.A limit of $500 applies to customers keys.

Coverage is provided for loss of use of a customer’s auto. The lesser of the cost of rental reimbursement for a similar auto or $60 per day, $1800 per occurrence for loss of use of a customer’s auto due to the loss or damage to such auto while in the care, custody or control of the garage operation.

Mechanics Professional coverage is included for damage to customer’s auto from the insured’s work. A $250 deductible applies.

Coverage for money, securities and credit card slips is included at a limit of $25,000 inside the premises and $5,000 outside the premises subject to a $250 deductible. Higher limits may be purchased. The loss of money and securities must result directly from theft, disappearance or destruction. Additional limits for inside the premises coverage are available.

If the policy covers a building, that coverage can be extended to apply to new buildings while being built on the described premises and buildings the insured acquires at a premises other than the described premises that are intended for a similar use as the building described in the policy or to be used as a warehouse. If the policy covers business personal property that coverage may be extended to such property the insured acquires at any location acquired or at a newly constructed building. This extension does not apply to personal property temporarily acquired in the course of installing or performing work on such property. Limit provided is $500,000 for building and $250,000 for business personal property.

Three part coverage that provides the following:

Coverage 1
Covers loss in value of the undamaged portion of the building if an ordinance or law requires demolition following a loss to another part of the building. Coverage applies up to the total building limit.

Coverage 2
Covers the cost to demolish and remove debris of the building if required by ordinance or law. Limit is $25,000.

Coverage 3
Covers increased cost to repair, replace, reconstruct or remodel the building due to an ordinance or law. Limit is $25,000.

Only applies if Building Coverage is written.

Coverage for outdoor property is included for outdoor fences, radio and television antennas, satellite dishes, trees, shrubs and bushes. The limit is $10,000 with a $500 maximum limit per tree, shrub or bush.

Coverage for outdoor signs is automatically provided for a limit of $5,000 for all risks except offices. For office risks the limit is the Business Personal Property Limit. Coverage is subject to a $250 deductible. For other than office risks, higher limits may be purchased.

Coverage is provided to pay the insured’s expense to extract pollutants from land or water at the described premises if the discharge, dispersal, seepage, migration, release or escape of the pollutants is caused by or results from a Covered Cause of Loss that occurs during the policy period. The expenses will only be paid if they are reported in writing within 180 days from the date on which the loss occurs. The most that will be paid is $25,000 for all expenses arising out of a loss occurring during each separate 12 month period of the policy.

Coverage is automatically included in the Business Personal Property Limit for the owners’ and employees’ tools while on premises. Theft of employee tools is limited to $1,000 per employee and $25,000 per occurrence. Business Personal Property Off Premises and In Transit limits employees’ tools and equipment, including diagnostic equipment to $2,500. A tool floater is available for Scheduled and Unscheduled Tools and Equipment where separate Inland Marine coverage is needed.

Coverage is provided for loss or damage to covered property caused by the interruption of service to the described premises. The interruption of utility services must result from direct physical loss or damage by a covered cause of loss to the insured property. Utility services include water supply, communication supply and power supply. The limit for direct damage is $25,000 and $25,000 for loss of business income or extra expense. Higher limits are available.

Coverage applies to direct physical loss o damage to valuable papers and records owned by the insured or that are in the insured’s care, custody or control caused by or resulting from a covered cause of loss. This coverage includes the cost to research, replace or restore the lost information on valuable papers and records for which duplicates do not exist. The limit for this coverage is $25,000 on premises and $10,000 off premises. The on premises limit may be increased.

Voluntary Property Damage coverage is provided for unintentional property damage to the property of others caused by the insured or while the property is in the insured’s possession and the damage is arising out of the operations described in the policy. The coverage limit is $5,000 per occurrence/$25,000 aggregate with a $500 per claim deductible.

Coverage is provided for direct damage or loss to covered property caused by or resulting from water which backs up through or overflows from a sump, sump pump or related equipment. The cost of repairing or replacing the sump pump or its related equipment is not covered if the loss is caused by a mechanical breakdown. Coverage does not apply if the insured fails to keep a sump pump in proper working condition or fails to perform routine maintenance or repair necessary to keep a sewer or drain free of obstructions or the sump pump failure is caused by or results from failure of power unless the policy is amended to cover power failure. A limit of $25,000 applies.