Free Online Article Directory. For Article Authors & Publishers
Garage Insurance Makes Sound Business Sense
It is very important for the sole or part owner of any shop, like a garage, which is engaged in repair of vehicles of any kind or involved in their body work, to understand the kinds of implicit liabilities they may face. This list would also include dealers of used cars their sale, purchase, leasing and hiring.
These legal liabilities stem as an offshoot of the job that the garage does. To put it differently, legal actions can be taken by a customer or any other affected party on suffering injury to body, damage to property, or destruction, caused as a result of the work done on a vehicle by that garage. Now this makes that garage liable for three different kinds of damages, namely punitive damages, special damages, and general damages. The umbrella, under which a garage takes refuge to financially cover all such legal cases, is called garage insurance.
However, it is easier said than done. An average sized independent garage is bound to face difficulties in firstly finding a company willing to do this insurance, and secondly, being able to afford it. Not many companies in the insurance sector and motor financing industry offer garage insurance. There are very sound financial reasons for this. An insurance company is in the business of earning some money to meet expenditure and to make a profit. Hence, the income has to be more than its expenditure.
This income is generated from two main sources the premiums it receives from insurees in respect of the running policies, and income from investing this money in various long and short term equity and other instruments. With the credit rates being at their lowest and markets being highly volatile at present, this income is low with no more predictable or assured returns. Therefore the companies are faced with a combination of two choices. They could increase the amount of premium that the policyholders have to shell out, or they could implement stringent selection criteria, prior to issuance of a policy, so as to reduce losses by way of having to pay out claims. They are doing both.
The premiums have increased anywhere between 27 to 38 percent. An average garage would obviously have to make certain adjustments in its business operations to ensure profitability. Insurance companies that do offer garage insurance have also become very choosy, as to the new garages that they do insure, by implementing stringent criteria for selection and underwriting. Further, they have also implemented certain processes towards risk management and reduced losses. For instance, garages on the coastal areas may find it extremely difficult to get 'comprehensive natural disasters' cover against losses due to tornados, hurricanes, high velocity winds or floods.
All said and done, this insurance for an independent or new garage is too important to be left undone. It is sound business sense to get it done, as it is better to pay regular premiums than being wiped out of business by a heavy damages legal suit.
Author Resource:-
Neil Anderson is a UK based finance specialist who provides advice and information about a wide range of products including garage insurance. Find out more by visiting his website, DNA Insurance.
People have different requirements when it comes to such services. In most cases, one would opt for a cover that takes care of absolutely everything, especially when it comes to accidents occurrence.
Many people today do not have a life insurance policy in place that can provide death benefits to their loved ones in the event of their death. Others may have a policy, but they feel as though their policy would not adequately provide for their loved ones.
Most of us handle short-term events, perhaps for one day affair only. But even if it is only for a short time, there is still a risk involved. For every risk here is a right insurance cover suitable for any kind of event.
Sometime back people used to stop at their agent's office and try to obtain facts on reasonably-priced auto insurance. Nevertheless due to the coming of internet years wherein our world is diminishing day by day, you can obtain the facts online and may look at the premiums and the kind of protection from many organizations at the click of the mouse.
Anyone who owns a fleet of vehicles knows that they need insurance to operate legally, what they may not be aware of is the different types of polices which are available. This is not insinuating that fleet owners don't know their business, because if they didn't they wouldn't last very long!
Running any sort of business here in the UK is getting tougher as the world has yet to come out of recession. We hear lots of forecasts and there is some optimism that that a full recovery is just around the corner.
There's no magic to running your own business; you just need a good product, a captive audience, and a good financial head on your shoulders. A taxi business actually meets two of the three criteria from the very beginning. In terms of a good product, running a taxi firm doesn't get much better. There will always be a demand taxis, both for leisure and for work, and as more and more people are mak
Obtaining taxi insurance cover isn't really all that different from insuring your own personal car. There are however obvious differences, the big one being that you will be carrying fare paying passengers and that you must ensure for their safety and welfare also.
Many years ago, back in the 1950s and 60s, and even the early 70s, having a physical profession, something like that of Lathe Turner or Centreless Grinder, was something to be admired. In those days getting an apprenticeship to learn your trade was considered something of a success in itself, and becoming a properly apprenticed/qualified tradesmen was considered something to be proud of back then.
As the worldwide economic recession continues to hold most countries in its grip including us here in the UK, the employment market continues to be slow. As many people tire of continuing to be one of hundreds applying for a new position with little chance of success, more and more people are deciding to start up their own taxi business.
![[Valid RSS feed]](http://www.articlelisted.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Neil Anderson's Author Feed
Print This Article
Add To Favorites 