NAICS CODE: All codes starting with 8111
Description of Operations:
Garages offer a broad range of services and repairs and also include body work, painting, rust proofing, or coating exposures. Body work can include welding, frame-straightening, patching, filling, replacement of panels, and fibreglass work. Operations also may include towing services.
Property exposure from fire comes from the oils, solvents, or other flammables, which must be properly labelled, stored and separated. Welding exposures are often a part of the operation and need to be evaluated for proper handling of the tanks and gases, as well as adequate separation from the other operations with either a separate room or flash/welding curtains.
Inland marine exposure comes from goods in transit. Employees will run errands to pick up various items that are needed and transport them back to the operations. Values will vary, based on parts needed. The radius also will vary but tends to be local.
Crime exposures are from Employee Dishonesty and money and securities. All ordering and inventory control should be handled by different individuals in order to have adequate checks and balances. There should be inventory control procedures in order to prevent employee theft. Cash should be maintained by a cashier with money regularly deposited.
Occupiers’ Liability exposure is from slip and falls by customers. There is also the attractive nuisance of cars in the parking lots. Customer waiting areas should be provided, and customers must not be permitted in the garage area. Lots should be well lighted, with chains in place to prevent entrance after hours. Products liability concerns stem from vehicles that are not properly repaired. Check-off procedures should be in place.
Environmental impairment exposures exist from the disposal of used oils, solvents and other hazardous wastes. Disposal procedures need careful review.
Automobile liability exposures are from errand running to pickup of needed supplies. All drivers should have valid licences and their MVRs should be regularly checked. If towing takes place, a more serious exposure exists. All tow drivers must be experienced in towing. Vehicles must be regularly checked, in particular the hoists and tow bars.
Garagekeepers exposure comes from the physical damage losses to customers’ vehicles while in the repair shop’s care, custody and control. Lots must be well lighted and chains should be in place to prevent transport. Fences and other security also may be appropriate.
Workers compensation exposures come from injury while lifting the vehicle or during the use of hoists. Other nonmechanical lifting exposures could result in back injury, sprains, strains or hernias.
Minimum recommended Insurance coverage for garages:
Building, Business Personal Property, Business Income, Accounts Receivable, Computers, Goods In Transit, Employee Dishonesty, Money and Securities, General Liability, Employee Benefits, Environmental Impairment, Umbrella, Business Automobile Liability and Physical Damage, Hired and Non-owned Auto, Garagekeepers, Workers Compensation
Other Insurance coverage to consider for garages:
Dishonesty, Disappearance and Destruction, Computer Fraud, Signs, Employment Practices Liability