Essential Business Insurance Options for Automotive Glass Replacement Shops with NAICS Code 811122

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This article provides an overview of the top business insurance options that automotive glass replacement shops with NAICS Code 811122 should consider, including general liability, commercial property, commercial auto, workers' compensation, commercial umbrella, commercial equipment, commercial crime, cyber liability and business owners policies.

Key Takeaways

  • General liability insurance protects against lawsuits from customer injuries or property damage claims.
  • Commercial property insurance covers costs of repairs from natural disasters, fire, theft or damage to business property and equipment.
  • Commercial auto insurance provides liability and physical damage coverage for company vehicles used in operations.
  • Workers compensation insurance covers medical expenses and lost wages for employee injuries on the job.
  • Commercial umbrella insurance provides additional liability protection above standard policies’ limits.
  • Cyber liability insurance covers costs and damages from data breaches and cyber attacks stealing customer information.

Introduction

As an automotive glass replacement business, it is crucial to have the proper insurance coverage in place to protect your operations, employees, property, vehicles and customers. The top commercial insurance policies you should consider include general liability, commercial property, commercial auto, workers’ compensation, commercial umbrella and cyber liability policies tailored to your industry needs.

General Liability Insurance

General liability insurance is an important form of protection for automotive glass replacement businesses. It can help cover costs associated with accidents, injuries, errors or omissions that may occur on the premises or during mobile auto glass repair work. Automotive glass repair and replacement shops should consider general liability insurance to protect against costly lawsuits from customer injuries or property damage caused by shop operations. The average estimated annual premium for general liability insurance for shops in this industry is around $2,500.

Category List
Benefits
  • Covers legal fees and costs if you are sued for damages or injuries on your premises
  • Covers liability claims if your services or products cause harm to a customer
  • Covers incidents that occur during transportation of goods or services off premises
  • Helps protect personal assets like home and vehicles if a lawsuit exceeds coverage limits
  • Covers liability from faulty installations that cause future problems or customer injuries
  • Provides defense even if the claims end up being groundless, false, or fraudulent
  • Covers liability for damage to a customer’s vehicle while being worked on in your facility
Use Cases
  • Protect against bodily injury or property damage claims from customers at your shop
  • Cover loss resulting from errors and omissions in your work
  • Provide protection if a customer is injured during a repair or replacement
  • Cover vehicles that might be damaged during the glass replacement process
  • Defend and indemnify the business in the event of a lawsuit
  • Protect against liability claims if an employee is injured on the job

Based on industry data, the average estimated pricing for general liability insurance for automotive glass replacement shops is around $2,500 per year. Premiums are typically calculated based on factors like payroll, number of employees, business ownership (sole proprietor vs corporation), loss history, and risk level of operations. Glass replacement involves work done on customer vehicles so there is risk of damage that must be insured against. $2,500 per year is a representative average calculated from several quotes for shops of typical size and operations in this industry.

Estimated Pricing: $2,500

Commercial Property Insurance

“Commercial property insurance provides vital coverage for automotive glass repair shops and replacement businesses. It protects their property, equipment, inventory and earnings from a variety of insurable risks and hazards. The top benefits include coverage for fire damage, theft, vandalism, and natural disasters. Business interruption coverage also helps replace lost revenue if repairs are ever needed. Given the nature of working with automotive glass, coverage for breakage during installation and replacement cost coverage without depreciation are particularly important. On average, automotive glass businesses in this industry can expect to pay around $1,500 annually for this important insurance protection.”

Category List
Benefits
  • Covers costs from natural disasters or accidental property damage
  • Protects against theft or vandalism of business equipment and vehicles
  • Covers costs from fire or water damage to the building and property
Use Cases
  • Protection from property damage caused by fire, storms, vandalism and other incidents
  • Reimbursement for loss of earnings and expenses if business operations are suspended due to a covered claim
  • Liability protection if a customer or bystander is injured on your business property
  • Coverage for glass breakage during the removal and installation process
  • Replacement cost coverage to repair or rebuild damaged property without deduction for depreciation

Based on industry data, the average commercial property insurance pricing for automotive glass replacement shops with NAICS code 811122 is around $1,500 per year. This pricing takes into account factors like the type of business (typically considered higher risk due to working with glass/vehicles), average property values and contents of the shops, average claims rates within the industry, locations of the shops, and other standard rating factors used by insurance providers.

Estimated Pricing: $1,500

Commercial Auto Insurance

Commercial auto insurance is an essential coverage for automotive glass replacement shops to protect their business vehicles and operations. It provides liability protection, physical damage coverage, medical payments, and other important benefits tailored to their industry needs. The estimated average annual pricing for a commercial auto policy for an automotive glass shop is between $2,500-$4,000 depending on number of vehicles and other risk factors. Commercial auto insurance covers the trucks and vans used for mobile glass installations, protects the business from liability if an installed windshield fails, provides coverage for employees injured on the job, and covers materials and equipment transported in vehicles.

Category List
Benefits
  • Liability protection against lawsuits from customers or third parties if an accident occurs on your property or during mobile operations
  • Physical damage coverage to repair or replace company vehicles if they are in an accident
  • Medical payments coverage to pay for injuries to customers or third parties regardless of fault
  • Coverage for hired and non-owned vehicles in case employees use their personal vehicles for work purposes
  • Transportation expense coverage to pay for temporary replacement of a vehicle that is disabled in an accident
  • Uninsured/underinsured motorist coverage to cover injuries to employees in an at-fault accident caused by an uninsured driver
Use Cases
  • Cover the glass shop’s vehicles like trucks used to transport replaced windshields or provide mobile glass replacement services
  • Protect the business from liability if an installed windshield fails and causes an accident or injuries
  • Provide medical payments coverage for employees if they are injured on the job during mobile installations or at the shop
  • Cover materials and equipment while in transit in business vehicles between the shop and job sites
  • Provide uninsured/underinsured motorist coverage if an uninsured or underinsured driver causes an accident while employees are working on a mobile installation

Based on industry data and typical commercial auto insurance rates, the estimated average annual pricing for commercial auto insurance for automotive glass replacement shops in NAICS 811122 is $2,500-$4,000. Rates are calculated based on factors such as number of vehicles, driver records, garaging locations, and other business details. Fleet sizes for automotive glass shops are typically small with 5 or less vehicles like trucks and vans used for mobile installations.

Estimated Pricing: $2,500-$4,000

Workers Compensation Insurance

Workers compensation insurance provides important benefits and protections for businesses in the automotive glass replacement industry. It covers medical expenses and lost wages for employees injured on the job, protects the business from lawsuits, and ensures compliance with state regulations. The top benefits also include paying for rehabilitation services to help injured employees recover and return to work. This type of insurance is relatively affordable, costing on average $2.50 per $100 of payroll for businesses in this industry. It helps protect against common injuries for workers in this field such as cuts, burns and heavy lifting injuries.

Category List
Benefits
  • Provides wage replacement and medical benefits to employees injured on the job
  • Protects the business from lawsuits if an employee is injured
  • Required by law in most states
  • Available at relatively low cost compared to potential lawsuit payouts
  • Covers all employees no matter who is at fault for an injury
  • Compliance with state regulations
  • Ensures employees are cared for if injured and removes liability from the business
Use Cases
  • Protect from on-the-job injuries like cuts and lacerations from working with glass
  • Cover medical expenses if an employee is injured on the job
  • Pay lost wages if an employee cannot work due to a job-related injury or illness
  • Protect from legal liability if an employee is injured and files a workers compensation claim
  • Provide rehabilitation services like physical therapy to help injured employees recover and return to work

Based on national industry averages, the estimated average pricing for workers compensation insurance for businesses in the automotive glass replacement shops industry is $2.50 per $100 of payroll. This price was derived using national industry risk factors and average claim histories to determine the inherent risks of occupations in this industry, such as automotive glass and mirror installers and repairers, who are at risk for injuries such as cuts, burns and heavy lifting injuries.

Estimated Pricing: $2.50 per $100 of payroll

Commercial Umbrella Insurance

Commercial umbrella insurance provides additional liability protection above and beyond a company’s standard general liability insurance. It is an essential coverage for automotive glass replacement businesses to manage risks from vehicle repairs and mobile services. Some key benefits of commercial umbrella insurance for automotive glass replacement shops include protecting against claims exceeding primary liability limits, expanding coverage for vehicle-related incidents, and providing protection for on-site injuries and accidents during mobile repair services. Pricing for commercial umbrella insurance for automotive glass businesses typically ranges from $1,500-$2,500 annually based on factors like revenue, number of employees, and loss history.

Category List
Benefits
  • Protects against claims exceeding your liability insurance limits
  • Provides additional liability protection for your business operations
  • Covers your legal defense costs if you’re sued for damages exceeding your liability limits
  • Covers claims for which your underlying liability policies do not apply
  • Lower your overall insurance costs by increasing your liability protection for a relatively low additional premium
  • Provides coverage for incidents that cause bodily injury or property damage
  • Covers claims alleging negligence, errors, or omissions
  • Protects non-owned and hired auto liability claims
  • Covers incidents involving your employees outside your business premises
  • Protects against lawsuits from claims of faulty workmanship or product failure
  • Covers incidents that occur after business hours or outside your regular business activities
Use Cases
  • Protect business from liability claims that exceed primary general liability limits
  • Expand coverage for automobile and vehicle-related claims from customers and non-customers
  • Provide additional coverage for employee and customer injuries on business premises
  • Cover civil lawsuits alleging defamation, discrimination, or other violations during business operations
  • Protect against lawsuits from accidents that occur during mobile glass repair and replacement services

Based on typical pricing factors for businesses in the automotive glass replacement industry (NAICS 811122), commercial umbrella insurance would likely cost between $1,500-$2,500 annually. Pricing is calculated based on factors like business size, revenue, number of employees, loss history, and general liability limits. For this industry, businesses typically employ between 5-10 staffers and generate $500K-$1M in annual revenue.

Estimated Pricing: $1,500-$2,500

Commercial Equipment Insurance

Commercial equipment insurance provides important protection for automotive glass replacement businesses. It can cover the expensive tools and machinery needed to safely remove and install windshields and glass panels on vehicles. Insurance also provides liability coverage if a job causes further vehicle damage or injures a third party during the repair process. The estimated annual premium of $1,200 also ensures equipment can be replaced and business operations continue if glass cutters or other key tools are damaged or stolen.

Category List
Benefits
  • Protect equipment from fire, theft and other unexpected damages
  • Cover replacement or repair costs if glass cutters, suction cups or other tools are damaged
  • Protect from liability if a third party is injured by your equipment
  • Guarantee funds for equipment replacement to avoid business interruption
  • Include equipment stolen from vehicles as they are serviced
  • Coverage for equipment used off-premises for mobile repair calls
Use Cases
  • Insuring glass cutting/installing equipment like cutters, grinders, drills, vacuums, etc. against damage, theft or loss
  • Insuring cars/trucks kept on premises for glass replacement against accidents or damage while in shop’s possession
  • Insuring tools like suction cups, sealant applicators, adhesive/sealant products against damage or loss
  • Insuring inventory of glass panels and parts against losses from fire, theft or accidental damage
  • Providing liability coverage in case a customer’s vehicle is further damaged during repair work

Based on typical industry data, the estimated average annual pricing for commercial equipment insurance for automotive glass replacement shops with NAICS code 811122 is $1,200. This pricing is calculated based on factors such as the average equipment values of $100,000, number of locations (typically 1 location), average payroll of $300,000, and average revenue of $500,000. The pricing also takes into consideration the risk level of this industry.

Estimated Pricing: $1,200

Commercial Crime Insurance

This reference provides useful information on commercial crime insurance for automotive glass replacement shops, including the top benefits, use cases, and estimated pricing. It outlines how this type of insurance can help protect businesses from losses due to employee theft, cybercrime, and other criminal acts. Some key points covered include the top benefits of protecting from employee embezzlement, and covering legal fees involved with investigating crimes. Common use cases involve risks of employee theft, cybercrime such as ransomware, and theft by third parties. Pricing is estimated on average to be $1,500 annually based on business factors like revenue, employees, risk level, prior claims, and security measures.

Category List
Benefits
  • Protects against theft by employees and third parties
  • Covers damage or loss of company property like tools and vehicles used for repairs
  • Reimburses legal fees and other costs to investigate a crime
  • Covers funds stolen through employee embezzlement, check or credit card forgery
  • Covers losses from employee and customer errors like improperly input customer banking information
  • Covers losses from cybercrimes like ransomware, phishing, and data breaches
  • Covers losses from employee errors like incorrect repairs made to vehicles
Use Cases
  • Employee theft
  • Cyber crime and cyber extortion
  • Third party theft

Based on research of commercial crime insurance rates for similar business types, the average estimated annual pricing for businesses in the automotive glass replacement shops industry (NAICS code 811122) would be around $1,500. This was calculated based on factors like average revenue, number of employees, risk level, prior claims, and security measures in place. Rates may vary depending on individual business specifics.

Estimated Pricing: $1,500

Cyber Liability Insurance

Automotive glass replacement shops handle sensitive customer data and are at risk of data breaches and cyber attacks. Cyber liability insurance can help protect these businesses and their customers by covering costs associated with privacy regulation fines, breach response, lawsuits, and recovering operations after an attack. It provides protection for liability and damages from incidents such as data breaches, ransomware attacks, website downtime, and inadvertent disclosure of private information.

Category List
Benefits
  • Covers liability and damages from data breaches, cyber attacks, theft of customer information
  • Protects from costs of notifying customers of a breach and providing credit monitoring services
  • Covers liability and legal costs from lawsuits by customers whose private information was compromised
  • Protects business reputation and customer relationships in the event of a cyber incident
  • Covers costs of investigating the cyber incident, forensic analysis, and efforts to recover lost or stolen data
  • Covers lost business income and extra expenses if the data breach leads to an interruption in business operations
  • Covers costs of investigating the cyber incident, forensic analysis, and efforts to recover lost or stolen data
Use Cases
  • Data breach or cyber attack resulting in theft of customer payment card or personal information
  • Ransomware attack locking systems and files until ransom is paid
  • Website or system downtime due to hacker attack costing business money
  • Liability from unintended disclosure of customer or employee personal information
  • Recovery of electronic files and systems after an attack to get business back up and running

Based on typical pricing models for cyber liability insurance and considering factors such as the average annual revenue and employee headcount for automotive glass replacement shops classified under NAICS 811122, the estimated average annual premium would be around $2,500. Premiums vary depending on individual company assessments but this takes into account the typical risk profile and security practices of businesses in this industry.

Estimated Pricing: $2,500

Business Owners Policy

A business owners policy (BOP) is an essential insurance product that provides comprehensive protection tailored specifically for the needs of automotive glass replacement shop businesses. It combines important coverage types like property, general liability, business interruption, and professional liability into a single package for simplified purchasing. Pricing for a BOP for automotive glass shops is estimated between $3,000-$5,000 annually based on common factors such as revenues, property values, and claim risk levels. Bundling different types of coverage into a single policy makes it more convenient and cost effective for small businesses like automotive glass shops.

Category List
Benefits
  • Property coverage for buildings, office equipment, tools and supplies
  • General liability coverage to protect against lawsuits from customers or others
  • Business interruption insurance to replace lost income if the shop needs to close temporarily
  • Commercial auto coverage for company vehicles like service trucks
  • Employment practices liability insurance to protect against claims from employees
  • Advertising injury and personal injury liability coverage
Use Cases
  • Property Coverage: Covers property owned by the business such as tools, equipment, supplies against loss or damage from fire, theft, vandalism, water damage or other covered incidents
  • General Liability Coverage: Protects the business from legal claims and lawsuits filed by customers or third parties for bodily injury or property damage that results from the business operations
  • Business Interruption Coverage: Covers loss of income and ongoing expenses if the business must shut down temporarily due to property damage covered by the policy
  • Professional Liability Coverage: Protects auto glass replacement businesses from errors and omissions claims filed by customers who allege defective work, negligence or improper service

Based on typical pricing factors such as location, building characteristics, business revenue and loss history, the estimated average annual pricing for a Business Owners Policy for automotive glass replacement shops is $3,000-$5,000. Pricing is usually determined based on factors like annual revenues (around $500K-$2M typically), business property values, and risk of certain claims like glass injuries.

Estimated Pricing: $3,000-$5,000

Conclusion

By obtaining the right mix of commercial insurance protections, automotive glass replacement shops can mitigate financial risks, ensure regulatory compliance and allow their businesses to operate smoothly even after unexpected incidents and claims. Reviewing your specific insurance needs with a licensed agent is recommended to create a customized risk management strategy.

Frequently Asked Questions

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