Years ago, many car owners in the Greater Toronto area made their own repairs. However, with the advent of microprocessors and computerized equipment, it has become much harder. In fact, this is a great time for auto repair services as more as more car owners are turning to professionals for help with their vehicles. However, with the increase in business also comes an increase in business risks and the right repair shop insurance is essential for success. If not, your business could be facing an untold amount of problems. Let’s look at the case of James L.
James owned a successful auto repair service located between Toronto and Mississauga. The business grew from his home garage to a large facility with twelve service stalls. James always carried automotive shop insurance, but to save costs he only had minimal coverage.
Many people in the GTA knew about James’ repair shop and its reputation for honest and dependable work. Just last year, there were so many customers, he had to open the shop on weekends, just to keep up with the increase in business. However, you never know what can happen.
James’ wife Ellen had a bad dream about the repair shop and told him he needed to increase his auto shop insurance, because something bad was about to happen. At first he laughed but when she insisted, he finally gave in to humour her.
A couple of weeks later, an employee needed to go to the warehouse for auto parts, but the truck was not running. To save time and trouble, he drove his own car to pick up the parts. On the way back, his car hit a slick spot in the road and smashed into a brand new SUV limo, totalling it. The damage and injury claims came to over $270,000.
Had the accident happened three weeks earlier, James would have been ruined. However, because his wife insisted he see an experienced risk management professional for garage keepers insurance, he had the coverage he needed. The coverage option was called ENOL and it provided liability insurance to his employees when they use their own vehicles. Needless to say, James never doubted his wife’s intuitive feelings after that incident.
Repair shop coverage is specifically designed for automotive services. It can make the difference between staying in business and going under due to financial losses.
