What Is Auto Repair Shop Insurance and Why Does Your Shop Need it?

Operating an auto repair shop can be a rewarding but risky business venture. Regardless of how careful your company may be or the experience levels of its staff, these businesses typically entail risky environments with heavy machinery, hazardous chemicals and sharp instruments inherently present. Additionally, you’re working and entrusted with valuable commodities, making it possible for any potential mistakes or accidents to lead to costly litigation. Given these circumstances, suitable insurance should be a top priority.

What Is Auto Repair Shop Insurance?

Your business should be aware that auto repair shop insurance may not refer to a product you can find available from most carriers. Instead, your business may need to acquire many types of insurance policies to form a suitable auto repair shop insurance package. Each component of these loss control measures can be crucial in financially protecting your business from relevant risks and exposures.

What Types of Coverage Do Auto Repair Shops Need?

While your auto repair shop may share many of the same risks and exposures as similar businesses in your industry, certain unique characteristics may likely impact your exact coverage needs. Discuss the following types of insurance and consider how each may address potential incidents that could affect your company:

General liability insurance may assist with third-party bodily injuries, property damage and personal and advertising injuries for which your shop may be at fault.
Commercial property insurance may help pay to repair or replace your business’s property, such as its building and equipment.
Garage keepers’ liability insurance may help cover damage to a customer’s property while it’s in your possession.
Professional liability insurance may offset damages and expenses if a client or other party accuses you of making professional errors from which they accrued losses.
Business interruption insurance may compensate your shop if a covered incident disrupts your ability to conduct normal operations or meet deadlines.
Workers’ compensation insurance may assist with expenses arising from employees’ workplace injuries and illnesses.
Commercial auto insurance may provide financial protection for incidents involving your business’s vehicles but does not typically cover clients’ automobiles left in your care.
Cyber liability insurance may assist with costs and losses arising from data breaches and other cyber incidents.
Commercial umbrella insurance can establish a secondary layer of liability coverage for particularly excessive losses that may exceed the limits of other policies.

Why Do I Need Coverage?

Auto repair shops should consider insurance to be an essential investment. Your repair shop may be subject to various requirements regarding insurance, such as carrying workers’ compensation and commercial auto coverage. Even in the absence of such mandates, the right portfolio can make all the difference in the wake of accidents and errors, potentially limiting out-of-pocket losses that could otherwise lead to significant losses and eventual insolvency.

What Is Auto Repair Shop Insurance and Why Does Your Shop Need it?