Running an auto repair shop or garage comes with unique responsibilities and risks. From diagnosing mechanical issues to disassembling and reassembling vehicles, there are countless opportunities for mistakes. Human error, equipment failure, or software glitches can result in costly damages, injuries, or liability claims.
Whether your shop services older vehicles that rely on owner descriptions or newer models that use advanced computer diagnostics, garage insurance is essential to protect your business, employees, and customers.
Why Auto Repair Shops Need Insurance
Auto repair shops face multiple types of risk, including:
- Vehicle damage caused during service
- Property damage to your facility or neighboring businesses
- Bodily injury to employees or customers
- Theft of tools, equipment, or vehicles
- Fire or other unexpected disasters
- Product liability for parts or repairs
Without the right insurance, these incidents could threaten the financial stability of your business. Garage insurance coverage provides the protection needed to operate with confidence.
Types of Auto Repair Shop & Garage Insurance
Auto repair shop insurance policies are designed to cover the specific risks associated with automotive services. Common coverage options include:
- General Liability Insurance – Protects against third-party claims for bodily injury or property damage occurring on your premises.
- Garage Liability Insurance – Covers liabilities arising from the operation of your garage, including damage to customers’ vehicles while in your care, custody, or control.
- Garagekeepers Insurance – Provides additional protection for customer vehicles stored or serviced at your facility.
- Commercial Property Insurance – Covers your building, tools, equipment, and inventory against fire, theft, or other covered disasters.
- Workers’ Compensation Insurance – Required in most states, protects your employees if they are injured on the job.
- Business Income / Interruption Insurance – Replaces lost income if your shop is temporarily unable to operate due to a covered event.
- Equipment Breakdown Insurance – Covers repair or replacement of critical shop equipment if it malfunctions or breaks down.
- Commercial Auto Insurance – Protects any company-owned vehicles used for customer pickups, deliveries, or business errands.
- Umbrella Liability Insurance – Provides additional coverage limits to protect your business from larger liability claims.
The combination of these policies ensures comprehensive protection for your garage, giving you peace of mind while you focus on running your business.
