There are many types of insurance coverages available, but these policies are the most relevant to auto parts stores.
General Liability Insurance
Auto parts stores are constantly visited by customers, which increases the risk that a customer will be injured or their property will be damaged. You can reduce the likelihood of incidents by making sure your store is in good order, however, there’s always a possibility that someone could slip or fall, and your business could be held liable. This coverage protects you against accidental third-party property damage, bodily injury, personal injury, and advertising injury. This coverage will pay for medical bills and lawsuits if a third party is injured or has their property damaged at your auto parts store. If your store sells a car part that malfunctions and damages a customer’s vehicle, this portion of your general liability insurance may cover the claim.
Commercial Property Insurance
This coverage will protect the value of your business property if it is destroyed or damaged by a covered hazard. Coverage includes buildings, furniture, computers, inventory, and other property. Property exposures can be higher for auto parts stores since many automotive products are flammable, such as oils, lubricants, degreasers, and other solvents. If an unexpected disaster strikes your auto parts store, commercial property insurance can help provide funds to replace or repair any damaged business property. Commonly covered causes of loss include fire, theft, storms, hail, explosion, water damage, and vandalism.
Commercial Crime Insurance
Crime coverage provides financial protection from losses caused by theft, fraud, robbery, burglary, forgery, or other crimes. Auto parts stores often have many employees and handle large amounts of cash, making them an increased target for theft or fraud. Commercial crime insurance can protect your auto parts store from the risks of employee dishonesty or third-party crime.
Business Interruption Insurance
If property damage forces you to temporarily close, recovery can be very difficult. In addition to losing income, you may still be required to pay ongoing expenses such as rent and employee payroll. Business interruption insurance can step in to reimburse you for lost income and operating expenses if your store is forced to close due to a covered peril, such as fire or storm damage.
Commercial Auto Insurance
This is necessary if your auto parts company makes deliveries or if your employees run errands in their cars. If an employee is in an accident while driving for business purposes, commercial auto insurance can provide coverage for physical damage to vehicles, third-party bodily injury, and property damage. If your employees drive their own personal vehicles for work purposes, you may need to add hired and non-owned auto insurance.
Additional Coverages
• Workers’ compensation insurance is legally required in most states for businesses with employees. Workers’ comp can cover employees’ medical expenses and lost income if they are injured while working.
• A business owner’s policy (BOP) combines general liability, property, business interruption, and extra expense coverage into a single package. This is a convenient product that could help you obtain a wide range of coverage, typically with lower rates than the cost of buying each coverage separately.
• Cyber liability insurance can cover financial losses that result from cyber events such as data breaches, hacking, viruses, denial of service attacks, and more. If you accept online orders or stores customer information like credit card numbers, cyber liability insurance is an important coverage to consider
