Auto Shop Insurance

For auto repair shop owners and mechanics, there’s nothing quite as rewarding as the smooth hum of a newly repaired engine. But that reward doesn’t come without risks. Auto repair companies, including mechanics, auto shops, garages, mobile mechanics, and auto parts stores, carry a unique set of hazards to owners, employees, and customers that may be alleviated through proper auto repair business insurance coverage.

Your employees may face on-the-job risks, such as chemical exposure or repetitive stress injuries. Your customers could become injured by slipping on grease or tripping over cords. Your garage or auto shop could be damaged due to fire or catastrophic weather. And you could be held liable for all of these damages.

However, when you carry the right types of auto repair service insurance like garage keeper’s insurance, garage liability insurance, workers’ comp, and cyber insurance, your customers and employees may be covered.

What type of insurance do I need for my auto repair business? 

Workers’ Compensation

Workers’ compensation insurance helps protect your auto repair business and covers your employees if they become ill or injured on the job. Check your current workers’ comp rate

General Liability

General liability insurance helps protect you and your auto repair company against third-party claims that involve property damage, bodily injury, or advertising injury. 

Business Owner’s Policy

BOP offers bundled insurance that may include business interruption insurance, property insurance, and liability coverage for your auto repair business.

Commercial Auto Insurance

Commercial automobile insurance helps cover liability and physical damage for vehicles owned by your auto repair company.

Cyber Insurance

Cyber liability insurance helps cover your company for events such as a data breach in which your customers’ or employees’ personal information or your company data is stolen or held hostage.

Garage Keepers Insurance and Additional Insurance Options

Additional coverage options such as garage keepers’ insurance or garage liability insurance may be built into your business owner’s policy or purchased separately to customize your auto repair business insurance package.

What are some auto repair business risks, and which type of insurance may cover them?

Selecting small business insurance can be confusing. Here are some sample scenarios to point you in the right direction. We recommend consulting with a trusted advisor to make sure you get the right types of coverage for your business.

A mechanics is burned by a caustic chemical
Workers’ compensation insurance may cover the worker’s medical bills and lost wages.
A customer slips on grease in the shop
General liability insurance may cover the customer’s medical bills and lost wages due to bodily injury and protects your company from further liability.
The garage one owns and the auto repair equipment are damaged by fire
Property insurance (often through a bundled business owner’s policy) may cover the costs to rebuild the structure and replace your equipment.
n addition to the damage, the business is interrupted due to the fire
Business interruption insurance (often through a business owner’s policy) may cover lost profits, temporary location moving costs, and certain operating expenses related to business loss from the fire.
An employee runs a delivery vehicle into a parked car
Commercial auto insurance may cover the auto repair costs and the third party’s car repair bills.

Who needs auto repair business insurance?

Whether you’ve been searching for workers’ comp coverage, garage keeper’s insurance, garage liability insurance, or commercial auto insurance for your small business, all auto repair business owners should have adequate insurance to cover themselves, their customers and their employees, including their mechanics, auto parts dealers, service techs, and delivery drivers. Auto businesses that need insurance include:

  • Auto repair shops, mechanics, garages, and automobile service centers
  • Gas stations
  • Auto parts dealers 
  • Tire dealers
  • Air conditioning service centers
  • Auto parts drivers
  • Mobile mechanics 
  • Manufactured housing dealers

Workers’ Comp for Auto Shops

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