When it comes to garage operations, performance shops and off-road auto repair shops face a unique set of challenges. Having a customer’s vehicle in their care, custody, and control can put these businesses at risk if an unfortunate event damages the customer’s vehicle. However, typical insurance policies including liability insurance, workers’ compensation, building and contents, and errors and omission insurance do not cover these businesses adequately. For adequate protection, these businesses require specialized insurance policies, such as insurance for off-road and performance shops.
Besides the typical insurance policies associated with automobile repair shops, performance or off-road vehicle repair shop may require the following specialized policies depending on the scope and nature of its operations:
Offered on either an Agreed Value or Actual Cash Value basis, this comprehensive policy aims to safeguard your customers' cars while they are in your possession. It covers repair costs as well as the cost of replacing a stolen vehicle. Besides overturn or collision coverage, the policy provides other forms of protection. These include:
Your personal car policy excludes business use. Additionally, it will not cover your business vehicle if you are involved in a car crash or cause third-party property damage while operating your business vehicle. This is where commercial auto insurance comes into play. It protects your business-owned vehicle and business against liability claims.
If your shop is involved with a racing or off-road program in any capacity, you need to carry the right insurance coverage to protect yourself and your business. Different forms of coverage options that you can consider include:
Off-Track and Storage: Covers race cars against physical damage while they are in storage, or in transit. It may also cover spare parts, equipment, and tools.
Commercial General Liability: Covers non-professional acts of negligence. In case you are legally liable for personal and advertising injury or property damage caused by your employees, business operations or services, the policy will protect your shop from the resulting financial loss.
Motorsports Liability Policy: Also known as participant legal liability (PLL), motorsports liability policy eliminates the typical exclusions for racing-related activities. Additionally, it provides coverage for third-party bodily injury.
Supplemental Participant Accident Coverage: This is a personal health insurance endorsement that helps offset the medical expenses resulting from a covered event.
Owners and Sponsors Liability: Aims to safeguard the interests of racing drivers, sponsors, and owners for named perils where the sanctioning body’s or race track’s insurance limit are not high enough to cover potential claims in which the driver, sponsor, or owner is named.
While it’s essential and relatively easy to invest in the aforementioned insurance products, it’s better to avoid or at least mitigate the losses. Some of the measures you can take to protect your business are:
At GrayStone Insurance Group, we specialize in high-risk and hard-to-place businesses. We write accounts that other agencies struggle to place. Contact us today for the most comprehensive coverage, custom-tailored to suit your unique insurance needs.
