Auto shop owners and car dealership service department heads have a major consideration when it comes to liability insurance. There are the obvious coverages that you will purchase on your liability policy, such as incidents that happen on the premises, whether it be damage to a customers vehicle caused by a careless service technician, or a piece of machinery that malfunctions, such as a car falling off the Two Post Lift.
Every shop has had a claim or two over the years. But there are other possibilities that you need to be prepared for. For instance, What happens when your technician takes a car out for a test drive and he gets in an accident? What happens if you send the car to another shop to have them perform a service that you don’t cover? Are you covered while it is in their possession? Furthermore, what happens if the technician who drove it has a DUI or a suspended license because of multiple speeding infractions, and then he gets into an accident? You need to be aware of your employees driving records. If they are behind the wheel at any point, you need to check on their driving record. Ultimately, it comes back to being your responsibility.
What about if the car malfunctions because of a real, or perceived error in the repair that your technician performed. You need to protect yourself. Make sure you’re covered for any possibility, because your business can be irreparably harmed by just one unfortunate event.