Running an auto repair shop involves more than repairing vehicles. Your business may have customers’ vehicles on your property, employees working with tools and equipment, valuable shop property, and vehicles used for business purposes. The right insurance can help protect your business from covered losses associated with these risks.
What Insurance Does an Auto Repair Shop Need?
The insurance needs of an auto repair shop depend on the services you provide, your location, employees, equipment, and business operations.
Depending on your business and eligibility, coverage may include Garage Liability, Garagekeepers Coverage, Commercial Property, Business Income, Commercial Auto, Workers’ Compensation, and other available coverage options.
Garage Liability Insurance
Garage Liability is designed for certain liability risks associated with operating an automotive repair or service business.
Your business could face a claim involving bodily injury or property damage arising from your garage operations. Garage Liability can provide protection for certain covered claims, subject to the terms, conditions, and exclusions of the policy.
Garagekeepers Coverage
Garagekeepers Coverage is particularly relevant for businesses that have customers’ vehicles in their care, custody, or control.
If a customer’s vehicle is damaged while it is at your shop, Garagekeepers Coverage may provide protection for certain covered physical damage to the vehicle, depending on the policy and circumstances of the loss.
This coverage can be an important consideration for auto repair businesses that keep customer vehicles at their location while repairs are being completed.
Commercial Property Insurance
Your repair shop may contain valuable property, including shop equipment, tools, furniture, computers, and other business property.
Commercial Property Insurance can provide protection for eligible property against certain covered losses.
Business Income Coverage
A covered loss could temporarily prevent your repair shop from operating normally. Business Income Coverage may help replace certain lost income and continuing expenses following a covered loss.
This can be especially important for businesses that depend on their physical location and equipment to generate revenue.
Commercial Auto Insurance
If your business owns or uses vehicles for business purposes, Commercial Auto Coverage may be appropriate.
Depending on your operations, business vehicles could include service vehicles, company cars, pickup trucks, or other vehicles used in connection with your repair business.
Workers’ Compensation
If you have employees, Workers’ Compensation may be an important part of your business insurance program. Requirements can vary based on your business and circumstances.
Auto repair employees may work around vehicles, lifts, machinery, tools, and other equipment, making workplace safety an important consideration.
Additional Coverage Options for Auto Repair Shops
Depending on your business and eligibility, additional coverage options may include:
- Commercial Umbrella Liability for additional liability protection above certain underlying policy limits.
- Cyber Coverage for certain risks involving electronic data, computer systems, and cyber incidents.
- Employment Practices Liability Insurance (EPLI) for certain employment-related claims.
- Other coverage enhancements based on your business operations and insurance needs.
Does Every Auto Repair Shop Need the Same Insurance?
No. An independent mechanic operating a small repair shop may have different insurance needs from a larger automotive service center with multiple employees, service vehicles, and extensive equipment.
Your coverage should reflect the services you provide, whether you keep customer vehicles at your location, the property and equipment you own, your employees, and how your business operates.
Choosing Insurance for Your Auto Repair Business
When evaluating insurance for your auto repair shop, consider:
- The types of automotive services you provide
- Whether customer vehicles remain at your location
- Your shop building and business property
- Tools and repair equipment
- Business-owned vehicles
- Employees and contractors
- Your business income and operating expenses
Working with a licensed insurance professional can help you identify coverage options that fit your business and determine what may be available based on your eligibility.
Protect Your Florida Auto Repair Business
Nieves Insurance Group helps eligible Florida auto repair shops and automotive service businesses explore insurance options designed around their operations.
Whether you operate an independent repair shop or an established automotive service business, the right insurance can help you prepare for covered risks and protect your business.
