If you lease a garage for your auto shop and make improvements to the space—such as installing equipment or remodeling the interior—it’s a good idea to review your auto services insurance coverage.
Generally, if you’ve made any after-the-fact alterations, it’s up to you, not the property owner or landlord, to insure them.
For example, let’s say you’ve installed shelving and a vehicle lift in the leased building. You would need to insure those items.
In the insurance industry, we call these changes improvements and betterments. Essentially, it means that you’re responsible in a leased space for insuring any alterations you have made, such as flooring, light fixtures, equipment, wiring, plumbing, cabinets, shelving or anything else that is attached to the ceiling, walls or floors.
Because these improvements might be essential to your business operations, it’s important to understand who is responsible for replacing them if they become damaged. If you do not update your business insurance to cover these improvements, you could be underinsured and without the means to fully repair or replace the improvements, if a covered loss occurs.
With an Erie Insurance policy, the improvements and
betterments are part of business
For more information, get in touch with your local ERIE agent. If you don’t have your own ERIE agent, you can find one close by. Our agents are knowledgeable professionals and local small business owners just like you who can make sure you have the right auto services coverage in place.