Automotive

Mechanics’ tools and equipment

Often replaces the specialist tools and equipment a repair business depends on after theft, fire, accidental damage or certain breakdowns.

Can include theft, fire or vandalism, damage by accident and equipment malfunction

Fleet

Can insure a group of vehicles under one policy against damage and theft, with liability for accidents involving any of them.

Can include damaged or lost vehicles, liability to third parties and uninsured driver coverage

Extended warranty

May pay for parts and labor when a vehicle suffers a mechanical or electrical failure after the manufacturer’s coverage ends.

Can include mechanical or electrical breakdown, labor and parts, damage by accident and interim replacements

Gap (guaranteed asset protection)

Generally pays what remains owed on a vehicle’s loan or lease beyond its insured value after a total loss or theft.

Can include remaining loan or lease balance and deductible on primary policy

Product liability

Can pay claims from people hurt, or property harmed, by a defective vehicle part or accessory the business made or sold.

Can include injury to people, damage to property and product defects

Product recall

Typically covers the cost of pulling a defective vehicle part from the market and repairing or replacing what customers already hold.

Can include cost of recall, business interruption, cost of replacements and crisis response

These guides describe types of insurance in general. The right coverage depends on your operations and the terms of the policy issued. Pasaca’s featured lines are cyber insurance, directors and officers (D&O) liability insurance, product liability insurance and aviation insurance.