Mechanic insurance usually covers bodily injury to customers and employees, property damage, personal and advertising injury, liability from products and services sold, and damage to the mechanic shop. Some mechanic insurance policies also cover the medical expenses of customers up to a certain limit, states Business Insurance USA.
General liability insurance for mechanic shops covers the safety of employees and customers and shields the business from financial difficulties arising from injury or loss of business, reports Business Insurance USA. Mechanic insurance pays for medical costs incurred by customers who sustain physical injuries at the shop or other premises where the mechanic conducts business. Auto mechanic shop insurance also covers damages that occur to a customer's car or other property if a customer is involved in an accident attributable to the operations of the mechanic shop.
Mechanic insurance protects mechanics from lawsuit claims made by customers for personal or property injuries or damages arising from faulty products or services. This insurance also covers claims that arise from damages that are not physical or property-related, Business Insurance USA explains. For example, mechanic insurance protects businesses from false advertising lawsuits filed by competitors or suppliers. Additionally, mechanic insurance covers any damage that the business causes to rented property.