Auto body shop and collision repair insurance in North Carolina

What insurance does an NC auto body shop need?

Core coverages include: garage liability; garage keeper's liability (at limits reflecting the peak value of vehicles on your lot); commercial property (including paint booth and specialized equipment); workers comp; and potentially pollution liability for paint and chemical operations. The paint booth is expensive to replace and should be scheduled specifically in the property program.

What property coverage does a paint booth need?

A paint booth is specialized, high-value equipment that should be scheduled specifically in the commercial property program at replacement cost value. Standard blanket property coverage may not adequately cover the booth's replacement cost. Confirm the booth is specifically addressed in your policy.

What pollution liability considerations apply to auto body shops?

Paint, solvents, and body shop chemicals can create pollution liability exposure. Some GL policies have broad pollution exclusions that could limit coverage for chemical spills or VOC exposure claims. Auto body shops should confirm their GL or garage liability policy addresses chemical and pollution exposure, or add pollution coverage.

How should auto body shops set garage keeper's liability limits?

Garage keeper's limits should reflect the maximum value of vehicles on your lot at any given time. A busy collision shop may have dozens of vehicles ranging from economy cars to luxury vehicles. Underestimating the aggregate value of vehicles in your care creates a coverage gap in the event of a total loss event like a fire.