Mechanics and automotive companies provide a valuable service to the public. While they ensure that vehicles are operating correctly and they reduce the potential for vehicle breakdowns, these individuals or companies face serious liabilities for the work they do. In many states, there are consumer protection laws in place that hold mechanics liable for a number of issues.
Automotive mechanics can be held liable for the following situations:
- Breach of warranty
- Providing an incomplete or false estimate
- Selling dangerous or defective parts
- Failing to perform requested work
- Failing to document what work was conducted
- Making unnecessary or unauthorized repairs
- Committing fraud
- Intentional or accidental damage of a vehicle while in the mechanic’s possession
The liabilities extend beyond the financial cost of the repair. Damages can extend to circumstances that arise from negligence, and in some cases, criminal charges may be given for unfair or deceptive practices.
Business insurance is a must-have for anyone looking to mitigate the risks associated with their day-to-day business operations. However, general policies won’t have the needed coverage for auto-related risks. Coverage that is uniquely tailored to the exposures of auto recyclers, transmission repair shops, auto body workers, oil and lube shops, or tire dealers should be the priority. You may find this as an add-on policy, or you could work directly with a provider that specializes in auto-related risks.