For years auto repair garages & auto repair shops have been forced by insurance companies to cover all employees, regardless of duties performed, under one class code for their auto repair garage workers compensation insurance. If you own an auto repair shop, you know what we’re talking about – that receptionist or counter employee you employ that occasionally walks through the shop is considered a mechanic just as much as the guy with grease all over his hands. Crazy!
But the tide is turning. We now have a garage program offering the “Service Writers” (read: receptionist/counter employee) class code (8515) for work comp on all auto repair garages. This is a sub-classification of class (0815) auto service center. This highly discounted service writers class code refers to the employees at an auto service center who typically work at the counter & wait on customers, prepare job cost or sales estimates, write up orders & collect payments for services rendered or merchandise purchased. These employees do not repair or work directly with vehicles in the auto service center. Of course, the rate on these workers can be far less than what you would pay on a regular mechanic.
In the past, and still done by most carriers and insurance agencies, employees that fit the above-mentioned description were grouped in with the mechanics that repair or work directly with vehicles in the auto service center- (815) AUTOMOBILE SERVICE CENTER or Garage - including counter personnel and estimators. This means higher auto service garage workers compensation insurance for the owner.
Grouping all employees into one class code not only costs you more money, it’s also an out-of-date way of writing your insurance package, particularly your workers compensation insurance package. We’d love to talk with you how our garage program and writing with this class code can save you money on your insurance policy.
- Contributed by: David Jones, Agent, Strickler Insurance West Chester, PA Branch.