Auto Repair Shop Insurance: Protecting Your Business and Your Customers

As an auto repair shop owner, you know that accidents can happen, even in the best-run businesses. Whether it’s a customer slipping and falling in your waiting area, a technician damaging a customer’s car, or a fire breaking out in your shop, unexpected incidents can be costly and damaging to your business. That’s why it’s crucial to have the right insurance coverage to protect your assets and safeguard your future. In this article, we’ll discuss the various types of insurance coverage that auto repair shops need, how to choose a reputable insurance provider, and frequently asked questions about auto repair shop insurance.

Types of Auto Repair Shop Insurance

General Liability Insurance

General liability insurance is the foundation of any business insurance policy. It provides coverage for bodily injury, property damage, and personal injury caused by your business operations. For example, if a customer slips and falls in your shop and suffers an injury, general liability insurance can help cover the cost of their medical bills, lost wages, and other damages. This coverage also helps pay for legal expenses if a lawsuit is filed against your business.

General liability insurance usually includes products and completed operations coverage, which protects you from claims arising from work you’ve completed or products you’ve sold. For example, if a customer claims that a part you installed caused their car to malfunction and causes an accident, products and completed operations coverage can help pay for any resulting damages or injuries.

Property Insurance

Property insurance provides coverage for damage to your business property caused by fire, theft, vandalism, and other covered perils. This includes your shop building, equipment, tools, and inventory. Property insurance can help pay for the cost of repairing or replacing your property, as well as any lost income due to a covered loss.

Commercial Auto Insurance

If your business uses cars or trucks for business purposes, such as picking up and delivering customer vehicles, you’ll need commercial auto insurance. Commercial auto insurance provides coverage for bodily injury and property damage caused by your business-owned vehicles. This coverage can help pay for medical bills, vehicle repair or replacement, and legal expenses if a lawsuit is filed.

Worker’s Compensation Insurance

If you have employees, you’re required by law to carry worker’s compensation insurance. Worker’s compensation insurance provides coverage for medical expenses, lost wages, and other expenses when an employee is injured on the job. This coverage also helps protect your business from employee lawsuits related to workplace injuries.

Umbrella Insurance

Umbrella insurance provides additional liability coverage beyond the limits of your primary liability policies. This coverage is designed to protect you from catastrophic losses that exceed the limits of your other insurance policies. Umbrella insurance is typically affordable and can provide an additional layer of protection for your business.

Choosing the Right Insurance Provider

Choosing the right insurance provider is just as important as choosing the right insurance policies. When selecting an insurance provider, look for a company that specializes in serving auto repair shops and has a good reputation in the industry. You’ll want to work with an insurance agent who can explain your coverage options and answer any questions you may have. You should also look for an insurance provider that offers competitive rates and responsive customer service.

Auto Repair Shop Insurance FAQ

What factors affect the cost of auto repair shop insurance?

The cost of auto repair shop insurance depends on several factors, including the size of your business, the types of services you offer, the number of employees you have, and the coverage limits you need. Generally, the more comprehensive your insurance coverage, the higher your premiums will be.

What is a certificate of insurance?

A certificate of insurance is a document that verifies that your business has insurance coverage. This document is commonly used to provide proof of insurance to customers or other parties who need to verify your coverage.

What should I do if I have a claim?

If you have a claim, you should contact your insurance provider as soon as possible. Your insurance provider will guide you through the claims process and help you submit the necessary documentation. It’s important to document the incident with photos, witness statements, and any other relevant information to support your claim.

Do I need insurance if I don’t own the building where my shop is located?

Yes, you’ll still need insurance even if you don’t own the building. You’ll need to insure your business personal property such as tools, equipment, and inventory. You may also need liability insurance to protect against accidents that could occur on the property.

How much liability insurance do I need?

The amount of liability insurance you need depends on the size of your business, the types of services you offer, and the level of risk associated with your operations. Your insurance agent can help you determine the appropriate coverage limits for your business.


Auto repair shop insurance is an essential part of protecting your business and your customers. By having the right insurance coverage, you can have peace of mind knowing that you’re prepared for the unexpected. Remember, it’s important to choose a reputable insurance provider that understands the unique needs of auto repair shops. If you have any questions or concerns about your insurance coverage, don’t hesitate to reach out to your insurance agent.