Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a motorbike store.

Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a motorbike store.

This article will discuss the primary insurance coverage for motorcycle shops, general liability insurance, as well as additional products that are appropriate for this industry.

Motorcycle Shops Need General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.


Example 1: During a client test drive, one of your salesmen inadvertently backs the motorbike into the customer’s automobile, inflicting considerable damage. In the case of a lawsuit, general liability insurance would cover repairs to the customer’s car as well as any legal fees.

Example 2: A replacement item slips from the hydraulic lift and smashes a customer’s head and shoulder while he discusses a repair work with a technician in your service bay. If the consumer sues, your general liability insurance will pay his medical costs and any other losses.

Example 3: As you research franchise opportunities, you discover that you must have a minimum level of general liability insurance in order to join your top pick. Purchasing adequate general liability insurance will allow you to join your favourite franchise while also safeguarding your company from a variety of threats.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

Motorcycle businesses in America typically pay between $500 and $1,500 per year for $1 million in general liability insurance.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Coverage Required by Motorcycle Shops

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all motorcycle shops should have are as follows:

Insurance for Commercial Vehicles

If you utilise personal cars for work in addition to an authorised fleet of service vans, your personal auto coverage will not cover damage to your vehicle in the case of a work-related accident. In the case of a work-related accident, commercial car insurance covers any automobiles used for business purposes.

Insurance for Workers’ Compensation

Workers’ compensation insurance is required in most states for both part-time and full-time employees. This coverage covers your workers if they are hurt at work or get sick as a result of a workplace accident. It covers not just an employee’s medical expenditures and missed pay if they require time to recuperate, but also any disability benefits resulting from a workplace injury.

Coverage Options for Some Motorcycle Shops

In addition to the insurance described above, your motorcycle shop may need other forms of coverage based on particular elements of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Umbrella Insurance for Businesses

While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket.

Insurance for Commercial Property

In the case of a fire or other natural catastrophe, you are liable for any business-related items stored in the building you own. After an accident, commercial property insurance would cover the expense of repairing or replacing your specialised equipment, computers, and parts inventories, allowing you to recover swiftly.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

If your company is an LLC, you should check into LLC insurance.