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Mechanic Insurance

Running a successful auto repair shop in Ontario requires expertise, dedication, and a keen eye for detail. However, even the most skilled mechanic can face unexpected challenges. Mistakes, accidents, and unforeseen events can disrupt your business operations. This is where mechanic insurance or auto repair shop insurance can be helpful.

At Contractors Insurance, we understand the unique needs of Ontario mechanics. Our experts can help you figure out how to get insurance for your auto repair shop and customize a plan that protects your business from financial risks. Don’t wait for an accident or mishap to happen before taking action. 

What Is Mechanic Insurance? 

Auto repair business insurance, or mechanic shop insurance, is a specialized policy designed to protect a wide range of professionals in the Ontario automotive industry, including auto repair shops, mechanics, and technicians. These professionals face daily risks like exposure to hazardous liquids and lifting heavy parts and equipment. 

The right insurance company or broker will help you get the right mechanic shop insurance plan for your shop’s needs. Here are some essential coverages you can get:

Commercial General Liability Insurance 

This covers third-party bodily injury and property damage claims. Imagine a customer slipping on a wet floor and getting injured—commercial general liability (CGL) insurance would help cover their medical expenses. It can also help cover cases like: 

  • Reputational or advertising damages.
  • Expenses of third-party bodily injuries.
  • Legal fees and settlements in case of lawsuits. 
  • Bodily injuries of mechanics during their own business operations. 

Commercial Property Insurance 

As an auto repair mechanic in Ontario, you must lease or own an auto repair shop. As this is the primary and in some cases, only site of business, commercial property insurance is a must-have. There can be situations when you are forced to close the shop due to unforeseen circumstances and this can help cover: 

  • Closing shop during natural disasters or accidents in the shop. 
  • Theft or vandalism of the auto body shop. 

Tools and Equipment Insurance 

Specialized tools and equipment are crucial for your repairs. Having these valuables covered by your auto mechanic insurance will keep you from losing money if they get damaged, stolen, or lost. This can help cover: 

  • Stolen or lost tools from the auto body shop. 
  • Stolen or lost equipment from a job site outside of your property. 
  • Damaged tools due to natural disasters.

Who Can Benefit From Mechanic Insurance? 

Mechanic insurance isn’t just for large repair shops—it’s a valuable tool across the automotive industry. Auto repair shops of all sizes, from body shops and collision centers to general repair and even quick lube services, can benefit from mechanic insurance. 

Mechanics and technicians, whether working independently or as part of a larger team, can also find value in mechanic insurance. Even businesses not directly involved in repairs can find value in mechanic insurance. Auto parts stores can benefit from liability coverage that helps protect against theft, customer injuries, or product liability claims.

Mechanic insurance provides peace of mind and financial protection for a wide range of businesses in the automotive industry, ensuring they can keep running smoothly even when unexpected challenges arise.

Why You Need Auto Repair Shop Insurance in Ontario 

Accidents can happen to even the most skilled and careful mechanics in Ontario, and they can cause big financial problems for any auto repair shop owner. Mechanic shop insurance protects your shop from unexpected problems like a lawsuit or a damaged customer’s vehicle. 

This includes protecting auto repair shop owners from expensive legal fees over mistakes made during repairs, being responsible for damage to customers’ cars caused by fire, theft, or accidents, and having to fix or replace shop property that was damaged by unplanned events. 

When you have mechanic shop insurance, you show that you are professional and care about your customers. This lets you focus on what you do best, knowing that your business is safe.

Mechanic Insurance Claims Examples 

Claims Example #1

  • Problem Icon

    You replace the clutch in a customer’s car. Unfortunately, due to a rare part malfunction, the clutch fails on the highway, causing an accident. The customer successfully sues you.

  • Outcome Icon

    Mechanic shop insurance with legal defence coverage kicks in, providing a lawyer to represent you. The insurance also covers any settlements reached, preventing a costly lawsuit from jeopardizing your business.

Claims Example #2

  • Problem Icon

    A highly skilled mechanic in an auto body repair shop specializing in European cars, owns a set of specialized diagnostic tools crucial for his work. One night, thieves break into the shop, stealing the entire toolset.

  • Outcome Icon

    The auto mechanic insurance policy reimburses the stolen tools, allowing them mechanic to replace them and get back to work quickly, minimizing downtime and financial loss.

Claims Example #3

  • Problem Icon

    A freak summer storm rips through town, causing a large tree branch to crash through the roof of your auto body shop. The damage is extensive, forcing you to close the shop for repairs.

  • Outcome Icon

    Auto repair shop insurance helps compensate for the lost income during the closure, ensuring the shop can reopen without significant financial hardship.

Leading Provider of Mechanic Insurance in Ontario 

At Contractors Insurance, we understand the value of strong relationships. That’s why we put our customers first. Here’s what sets us apart when it comes to providing packages for mechanic shop insurance:

Personalized Insurance Plans 

Forget one-size-fits-all. We work with you to build a personalized plan that caters to your shop’s size, services, and budget. You only pay for the coverage you need.

Utmost Transparency on Coverage and Limitations 

We will walk you through your policy, ensuring you fully understand your coverage details. Make informed decisions with confidence, knowing your shop is comprehensively protected.

Thorough and Straightforward Insurance Education 

Our team speaks your language. We avoid technical jargon and prioritize clarifying any confusion surrounding mechanic shop insurance, empowering you to make the best choices for your business.

Frequently Asked Questions About Mechanic Insurance 

Mechanic insurance typically includes a variety of coverages, such as:

  1. General Liability Insurance: Protects your shop from lawsuits arising from customer injuries or property damage.
  2. Garagekeeper’s Coverage: Reimburses damage or theft of a customer’s car while in your care.
  3. Commercial Property Insurance: Covers damage to your shop building and equipment from fire, theft, vandalism, and other covered perils.
  4. Business Interruption Insurance: Helps compensate for lost income if you’re forced to close your shop due to a covered event.
  5. Worker’s Compensation Insurance: Covers medical expenses and lost wages for employees injured on the job.

Yes, mobile mechanics have unique insurance policy needs. Specialized auto mechanic insurance plans can cover your tools, and vehicle, and protect you from liability while working at customer locations.

Mechanic insurance offers a variety of benefits, including:

  • Financial protection from lawsuits, customer vehicle damage, and business interruptions.
  • Peace of mind knowing your shop is covered in case of unexpected events.
  • The ability to focus on providing excellent service to your customers.

Ready To Get The Coverage You Need? 

Empower your Ontario automotive repair shop with confidence! Contractors Insurance, Onario’s trusted and award-winning brokerage, offers personalized mechanic insurance plans. 

Our dedicated brokers will guide you through insurance coverage options and create a plan that protects your shop from lawsuits, customer vehicle damage, and business interruptions. 

Contact Contractors Insurance today and get a free quote!

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