What Kind of Insurance Do I Need for an Auto Repair Shop?

Automobile repair shops are a one-of-a-kind industry. 

They have a wide range of technical facilities, from automotive repair to tune-ups for automobiles of all sizes and types. 

Often the company is a stand-alone operation, such as an auto mechanic, and in other instances, it is part of a larger enterprise, such as a car dealer or gas station.  

Auto repair shops may specialize in a particular form of repairs, such as gears or brakes, or fix other motor transport forms, such as snowmobiles or commercial vehicles. Some shops will repair or restore parts like brake drums, or they will custom-make obsolete difficult-to-find parts. 

The uncertainty of running an auto service shop is one aspect that influences all forms of auto garages. A single accident in the car shop will lead to a lawsuit that harms the company’s financial health. As a result, an auto repair shop must have accurate and correct insurance policies in place. 

In this article, we will focus on how auto repair shop insurance will safeguard you and your business.

Typical Insurances for an Auto Repair Shop

Every car repair shop must have insurance coverage. Your company’s day-to-day operations including dealing with hazardous equipment and on costly automobiles. 

An accident that causes damage or injury, followed by a lawsuit, may irreversibly harm your business, both in terms of reputation and possible financial loss.  

Auto repair shop insurance that protects the future liabilities will shield your company from these lawsuits and help make sure your shop stays successful. 

Here are some common types of auto repair shop insurance that can help you safeguard your business from various types of injury. 

  • Garage Liability Coverage (Business Liability) 

Like regular business liability insurance, a garage liability insurance policy protects an auto repair shop from claims and medical bills resulting from an accident on the property. 

Unlike typical commercial buildings, auto repair shops can often have more severe accidents, so special liability arrangements are required to provide the appropriate security for your business.


  • Garage Keepers Insurance 

Although liability safeguards you from litigation, you must also have insurance for your clients’ vehicles while they are in your care. There are various levels of insurance available, such as restricted protection that only covers for losses for which you are legitimately liable or maximum protection that covers for all negligence irrespective of legal liability. 

  • Business Auto Insurance 

You or your staff will often need to test drive the automobiles to confirm that they are in good working order. In this situation, a commercial auto insurance policy will cover your employees, your customers’ vehicles, and your company in the event of an accident.  

Business auto insurance plans also offer coverage if an employee has to drive out to collect a vehicle component, equipment and is involved in a crash. 

  • Business Property Insurance 

This coverage safeguards your auto repair shop from robbery, vandalism, fires, and other incidents that cause property harm. 

Business property insurance also covers office supplies, missing inventory, and other risks. You can amend this insurance to provide business interruption coverage, which would compensate for employee wages, leases, and additional costs incurred when the company was temporarily shut down. 

  • Employee Theft and Crime Protection Insurance 

Your auto shop business will be protected from damages incurred through this type of insurance due to your employees’ fraudulent actions or theft. 

What Does Auto Repair Shop Insurance cover? 

The exact scope of your auto repair shop insurance policy can vary depending on your insurer and the options you choose. Still, most of the policies will safeguard your shop against the following issues:

  • Bodily injury to anyone 
  • Property damage caused by a third party 
  • Personal property loss  
  • Injuries to individuals or workers 
  • Coverage for finished operations/products 
  • Lost Revenue 
  • Tearing down of equipment 
  • Disasters and illness at work 
  • Ongoing medical attention (such as rehab) 
  • Wages not paid during the recovery period 

How Can you Apply for Auto Repair Shop Insurance? 

If you are an auto shop owner and looking for auto repair shop insurance, you can discover many insurance providers. However, not all insurers are created equal, and some can offer policies that cover unnecessary items, while others charge different rates for the same policies.  

You must conduct thorough research to ensure that you partner with the best insurance company for your auto repair shop.

A simple local search inquiry of the insurance companies in your town is a great place to begin applying for auto repair shop insurance.

Keep in mind that there is a great deal of information that must include insurance policy applications, which must be provided with copies of relevant documents. 

The car repair and maintenance industry comprises a wide range of shops that offer multiple services and have unique ways of doing business. 

Although no two auto repair shops are alike, they all face the same threats and potential obstacles. Auto repair shop insurance shields the company and its properties from claims arising from your service on customers’ cars. 

To make sure that you choose the best auto repair shop insurance policy, you must understand what the policy covers, the limitations, and premium costs. 


Jackson & Jackson Insurance Agents and Brokers offer commercial and business insurance with over 80 years of experience serving the San Dimas, Glendora, and LaVerne business communities.

Our agents can help you customize a menu of insurance solutions to meet your specific needs. Together we can review the options and develop a clear plan for auto repair shop and garage insurance coverage.

Call today or fill out one of our free online quote forms to get started.

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Are you ready to save time, aggravation, and money? The team at Jackson & Jackson Insurance is here and ready to make the process as painless as possible. We look forward to meeting you!

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