What Auto Body Shop Business Insurance Covers Explained
- Nate Jones, CPCU, ARM, CLCS, AU
- 6 days ago
- 2 min read
Auto body shops face unique risks that go far beyond standard small business operations. From handling customer vehicles to using heavy equipment and hazardous materials, having the right auto body shop business insurance coverage is essential.
This guide breaks down what auto body shop insurance covers, how each policy protects your business, and how Wexford Insurance can help you secure the right coverage.
Why Coverage Matters for Auto Body Shops
Auto body repair shops regularly face claims related to:
Damage to customer vehicles
Employee injuries
Fire, theft, or vandalism of tools and equipment
Lawsuits related to workmanship or accidents
Vehicle accidents involving shop-owned vehicles
Without proper coverage, these incidents can result in significant out-of-pocket costs and legal exposure.
Core Coverages Included in Auto Body Shop Insurance
Covers third-party bodily injury and property damage caused by your shop operations, such as:
Customer slip-and-fall injuries
Damage to a customer’s property (excluding their vehicle)
Legal defense costs if your shop is sued
Protects customer vehicles while they are:
Being repaired
Stored on-site
Parked on your premises
Coverage may apply to damage caused by fire, theft, vandalism, weather, or collisions.
Additional Important Coverages
Covers physical assets including:
Shop buildings
Lifts and paint booths
Tools and diagnostic equipment
Office furniture and inventory
Protection applies to events like fire, theft, vandalism, and some natural disasters.
Covers employees if they are injured on the job, including:
Medical expenses
Lost wages
Rehabilitation costs
Required in most states for businesses with employees.
Covers vehicles owned by your shop and used for:
Towing
Test driving customer vehicles
Parts pickup and deliveries
Specialized Coverage Options for Auto Body Shops
Pollution Liability Insurance: Covers claims related to chemicals, paint fumes, and hazardous waste
Professional Liability (Errors & Omissions): Covers claims of faulty repairs or workmanship disputes
Umbrella Insurance: Provides extra liability limits beyond standard policies
What Auto Body Shop Insurance Typically Does Not Cover
Intentional damage or illegal activity
Wear and tear or poor maintenance
Uninsured subcontractor mistakes
Certain natural disasters without endorsements
An insurance agent can help identify exclusions and recommend add-ons.
How Wexford Insurance Helps Auto Body Shops
Wexford Insurance specializes in coverage for auto body shops and garage operations. They help shop owners:
Understand what each policy covers
Avoid coverage gaps
Customize limits based on shop size and services
Bundle policies for better value
Protect your shop, employees, and customers.👉 Get an auto body shop insurance quote from Wexford Insurance today.
