Are automotive shops in AZ required to carry liability insurance? If so who regulate them and how do you know if you are protected?
Liability question
- Thread starter LandCruiserPhil
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We own the property and shops, so we have liability insurance in case of an accident. When we used to rent one building, the property owner required us to carry insurance as part of the lease. I don't think the state requires you to carry liability, but it would be crazy not to have it. Our policy is through our regular insurance carrier.
There also could be more than one policy in effect at a garage.
One type of policy covers general liability (e.g., someone falls on your wet floor in the customer area of your building, etc. )
The other type of policy covers you for the work performed on customer's vehicles (e.g., you forget to put oil back in someones car you are covered for the new engine you have to buy.)
One type of policy covers general liability (e.g., someone falls on your wet floor in the customer area of your building, etc. )
The other type of policy covers you for the work performed on customer's vehicles (e.g., you forget to put oil back in someones car you are covered for the new engine you have to buy.)
Because you never know when "mayhem" may strike?
Today after a Dodge Ram hit this Mazda, pushed it over the curb, and into the car display ramp.
everyone is ok thankfully
(thankfully the FJCruiser on the right was never touched - safe!)
Today after a Dodge Ram hit this Mazda, pushed it over the curb, and into the car display ramp.
everyone is ok thankfully
(thankfully the FJCruiser on the right was never touched - safe!)
I don't know if the regulations are different now, when my family had the sign businesses we had to not only have different policies but the insurance provider required that we clearly define what type of wrong was being done on the sights and at the physical signs. When our Tucson plant began to fabricate the steel structures we had to insure differently and we had an added responsibility of disposing of solvents and paint in an approved environments friendly fashion.
Our signs fell under the guidelines of city and county inspectors and periodically OSHA if they happened by. I guess the bottom line was that there was an insurance for every typed of work we did and a inspecting body to assure we were compliant.
We also used to rent properties in the state and we always made sure the tenants were licensed and insured accordingly at the signing of the lease.
Our signs fell under the guidelines of city and county inspectors and periodically OSHA if they happened by. I guess the bottom line was that there was an insurance for every typed of work we did and a inspecting body to assure we were compliant.
We also used to rent properties in the state and we always made sure the tenants were licensed and insured accordingly at the signing of the lease.
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For the property I rent for my shop, I am required to have liability insurance. I also have a Garage Keeper's policy for my business. I'm not required to, but somebody would be really exposing themselves to risk without it.
Mine covers all sorts of things. Accidental hazmat spills, driving customers cars, if a wheel falls off due to my negligence, if a car falls off my lift, if my garage gets broken in to and my tools are stolen, etc.
Mine covers all sorts of things. Accidental hazmat spills, driving customers cars, if a wheel falls off due to my negligence, if a car falls off my lift, if my garage gets broken in to and my tools are stolen, etc.
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- Thread starter
- #8
Would that be the same thing for carpenters, plumbers, and electricians?
I believe that those trades are governed by the registrar of contractors. They are under bonds or some different type of insurance. I know in the local paper up here that if you are advertising to do construction trades you have to provide a license number or you have to state "Not a licensed contractor" in the ad.
I don't have to do that for advertising my auto shop. There are several different groups you can get accredited through, ASE being probably the most recognized in the US. It is voluntary. Sort of like joining a fraternity. I have been certified through ASE in the past, but I haven't kept it current. It neither helped that I had it, nor hurt that I let it lapse. They are just another business trying to get in a small business owners wallet. Even if a shop has the ASE certification displayed, it only means that one person there is certified, not everybody so it is very misleading. Sure, they have a ASE Master, but he isn't touching every car, just the gravy jobs. Some kid is doing the mundane dirty work. The day to day stuff that everybody gets done to their cars. ASE is not a governing body and while I believe they do offer shop insurance policies, they do not require a shop to even have a business license, let alone insurance as long as ASE gets their money.
I don't have to do that for advertising my auto shop. There are several different groups you can get accredited through, ASE being probably the most recognized in the US. It is voluntary. Sort of like joining a fraternity. I have been certified through ASE in the past, but I haven't kept it current. It neither helped that I had it, nor hurt that I let it lapse. They are just another business trying to get in a small business owners wallet. Even if a shop has the ASE certification displayed, it only means that one person there is certified, not everybody so it is very misleading. Sure, they have a ASE Master, but he isn't touching every car, just the gravy jobs. Some kid is doing the mundane dirty work. The day to day stuff that everybody gets done to their cars. ASE is not a governing body and while I believe they do offer shop insurance policies, they do not require a shop to even have a business license, let alone insurance as long as ASE gets their money.
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- Thread starter
- #12
Licensed contractors are regulated by the AZ register of contractors. The register also protect the customer that the work will be done in a professional manner and 100% completed via a required performance bond. Protection you dont get using an unlicensed contractor.
The general contractors and large corporations require the company I work for to have 2 mil in current liability and workmans comp insurance. Some go as far to require there name to be on the policy along with special wording.
Licensed contractor pay a lot in insurance coverages to protect the client. <This makes it easy for a non licensed contractor to work for much less leaving the client holding the bag in the event of liability.
To answer this particular question, if you want to know, ask I guess. If someone asked me, I could show them my insurance policy. However, if a stranger asked me to check out my insurance, I'd probably not do business with them because I'd think they were up to something.
I have a customer with a very expensive Aston Martin. When he makes an appointment, I call my agent and he does something with my insurance to cover the extra exposure. I can't have that car not be covered in my shop. I couldn't afford it if something happened.
- Thread starter
- #14
Im sure because of lack of regulation it makes it harder to be competitive in your business. Good for you for protecting your customer and yourself.
Can I get a discount on my next service now
My shop is off the beaten path. I have not needed to pay for any advertising at this point. I have jobs stacked up like pancakes because I do good work, charge a fair price, and I think most importantly, I go over things with my customers. I answer their questions, I'll show them in a book how something works, whatever I need to do to make them confident to leave their investment in my hands.
A question I ask most contractors is "Are you licensed and bonded and have insurance?" No to any of them is an automatic reject. And if they say yes, I ask for copies of their info. I've had people say they are insured and when I called their broker he knows nothing about their commercial business; sure, they have minimum auto coverage or home policy - but nothing for commercial operations and liability. For mechanics its important because if they test drive your car while repairing it your policy probably won't cover them - not even your UIM.
And these days, beyond the normal liability of 300k or more, an umbrella of 1 to 2 megabucks is minimal. That's usually enough to pay the other guys attorney's fees.
And that accident above? Three or four cars damaged, plus the original truck, and any road signs or electrical and fence damage. I can see it being $200k plus another $200k for PTSD because someone was within 50 feet.
And these days, beyond the normal liability of 300k or more, an umbrella of 1 to 2 megabucks is minimal. That's usually enough to pay the other guys attorney's fees.
And that accident above? Three or four cars damaged, plus the original truck, and any road signs or electrical and fence damage. I can see it being $200k plus another $200k for PTSD because someone was within 50 feet.