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914World.com _ 914World Garage _ OT: Commercial Shop insurance

Posted by: Brett W Jan 20 2006, 10:40 PM

I am moving to a bigger facility and need to get real commercial garage insurance. Anyone out that have an idea what type of company I should be looking for and an idea of what type of coverage I should look into?

Posted by: bernbomb914 Jan 20 2006, 10:44 PM

check with Howard the insurancd wizard

Bernie

Posted by: Racer Chris Jan 21 2006, 12:56 AM

Brett, are you talking about an auto repair shop or a fabrication shop. It will make a huge difference. Sentry Insurance has a good program for metal fabrication businesses.
At a minimum you will need a million $$ commercial liability and property coverage. Premiums are often based on gross income, combined with the nature of the business. As a business owner you can claim exemption from workmans comp but once you have an employee this coverage becomes mandatory. Completed products coverage is often added for manufacturing and fabrication businesses.
I don't know what other coverage is required for an auto repair facility.

Posted by: lagunero Jan 21 2006, 12:57 AM

Ha! Howard recently told me that he doesn't do commercial insurance anymore.
Look up brokers in your state. Companies with A- or better rating and 1+2mil is the generic starting coverage (really varies depending on each case).

Posted by: Brett W Jan 21 2006, 12:09 PM

Chris it will be a design and fabrication facility. I am not advertising as an automotive repair facility but I am probably be going to engine swaps, race car fab work, general automotive engineering consulting.

I am not looking for profits right now. I have four months before I am done with school so basically I am looking to get my name out there and do enough work to cover my bills and allow me enough free time to finish my race car, so I can really get to it after I graduate.

I want enough insurance to cover all of my equipment and should I have a customer's race car in there and the building burns down.....

Posted by: Racer Chris Jan 21 2006, 02:17 PM

All you need then is general liability and property coverage. Your landlord might require an insurance certificate proving you have it too.
Annual cost will be around $2K plus or minus $500.

Posted by: Brett W Jan 21 2006, 08:00 PM

Is your insurance based on sales? Does it cover a race car in your shop if it burns down? What about a customers restoration? Repair work?

Posted by: cnavarro Jan 22 2006, 11:46 AM

Brett, there are a few different insurance options. I looked into it for months and let me tell you, it sucks A**. Give me a call and i'll give you some suggestions. First and foremost, try not to say AUTOMOTIVE. It's a bad word, kind of like when you're buying parts for an experimental aircraft and mistakenly say it's for that purpose You can get a business owner's policy for somewhere around a $1000 which covers everything without the actual physical property (landlord carries that).