Diesel Performance Shop Business Insurance

Getting insurance for your diesel performance business is essential.

Diesel performance businesses must be sheltered against the numerous risks that come with operating a business, making it essential to have insurance coverage. With insurance, your business can be shielded from property damage and also be covered for liability for bodily injury or loss of profits.

For example, a customer may threaten to sue alleging that your work on his vehicle engine was faulty. A situation like that can be managed by insurance.

We’ll help you find the most personalized and affordable coverage for your unique business.

Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Diesel Performance Shop

General liability insurance is — generally speaking — one of the most important insurance policies for diesel performance businesses.

Some of the risks general liability insurance covers are:

Bodily injury
Property damage
Medical payments
Legal defense and judgment
Personal and advertising injury

While general liability insurance can cover a wide range of risks, it may not be adequate to cover all of the potential risks that your business may face. In order to ensure comprehensive coverage, it may be necessary to obtain specialized policies that are specifically designed to address these unique risks. These specialized policies may offer additional protection, such as:

Commercial property coverage: This type of insurance will compensate your diesel performance business for expenses incurred in repairing damage to the premises that house the business. Damage covered typically includes that caused by fire, vandalism, burglary and theft.
Commercial auto insurance: This type of insurance is required by state law. Some states mandate no-fault policies, also called personal injury protection (PIP) that require both drivers in a collision to be compensated by their own insurers. Others have at-fault policies that only pay if the insured is to blame.
Business income coverage: Business interruption insurance will help an owner recoup losses incurred from having had to close the business because of a natural disaster. Disruptions due to certain man made events are also covered.

Insurers generally fall into two categories:

Traditional brick and mortar insurers: Traditional insurers may still rely on paper-based processes and, for example, require customers to visit a physical office to file a claim. This can lead to higher premiums.
Online insurers: Insurtechs, like Bright Health and Next, often offer digital claims processing and policy matchig, which makes the process quicker and more efficient. Increased efficiency is passed on to the consumer in the form of lower premiums.

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Cost of General Liability Insurance

On average, diesel performance shops in America spend between $450 - $1,000 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a diesel performance shop to other professional industries using the graph below.

Several factors will determine the price of your policy. These include your:

Location
Deductible
Number of employees
Per-occurrence limit
General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.

A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

Find the Best Rate

Discover the best coverage at the lowest rate in our cheapest business insurance review.

Common Situations That General Liability Insurance May Cover for a Diesel Performance Shop

Example 1: While entering your shop, a customer trips over an air compressor hose, breaks a wrist in the resulting fall, and decides to sue your business. General liability insurance would cover your legal defense costs.

Example 2: A local competitor sues your shop for libel. While you disagree with the accusation, you know you need an attorney. General liability insurance would cover your legal defense costs.

Example 3: When a customer slips and falls in your restroom, she breaks an arm and asks your business to pay for her medical treatment. General liability insurance would cover her medical bills.

Other Types of Coverage Diesel Performance Shops Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:

Commercial Property Insurance

You made a major investment in the tools, equipment, and supplies needed to establish your diesel performance shop. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your shop as well as the business materials you store there.

Professional Liability Insurance

While you strive to provide sound advice, accurate recommendations, and quality service for your customers, there’s always a chance someone might claim your professional services caused them harm. If a customer claims you made a mistake on their vehicle — whether you actually made an error or not — and sues your business, professional liability insurance would cover your legal fees and any required settlement.

Workers’ Compensation Insurance

Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a work-related accident.

Commercial Umbrella Insurance

While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your diesel performance shop:

Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
Stay up to date with business licensing.
Maintain your corporate veil.

Diesel Performance Shop Business Insurance FAQ

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

Acquiring business insurance prior to starting your business is crucial. Failing to have coverage from the onset may not only expose your business to unforeseen hazards, but it could also lead to legal infringements.

Certain forms of insurance, such as commercial auto insurance and workers' compensation, are mandatory by law. Additionally, your business may have need of insurance to safeguard against specific risks such as property damage and personal injury to customers.

Not necessarily. Certain exceptions may be written directly into your diesel performance shop insurance policy, and some perils may be entirely uninsurable.

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.