How to Get Auto Body Shop Insurance Requirements for Repair Businesses

Nate Jones, CPCU, ARM, CLCS, AU
6 days ago
2 min read

Running an auto body repair shop involves significant risks—customer vehicles, employee safety, and expensive equipment all need protection. Understanding the insurance requirements for auto body shops is critical for compliance, liability protection, and client trust.

This guide covers the mandatory and recommended insurance policies for repair businesses, explains why they matter, and shows how Wexford Insurance can provide a fast, tailored quote.

Why Auto Body Shop Insurance Requirements Matter

Insurance requirements protect your business from financial loss due to:

Customer property damage
Employee injuries
Equipment theft or damage
Legal claims related to workmanship or accidents

Many clients, lenders, and states require proof of insurance before you can operate or enter into contracts. Being properly insured ensures your shop remains compliant and credible.

Mandatory Auto Body Shop Insurance Requirements

1. General Liability Insurance

Covers third-party injuries and property damage at your shop.
Often required by commercial contracts or lease agreements.

2. Garagekeepers Insurance

Protects customer vehicles while they are in your care, custody, or control.
Required by many client agreements or lenders financing repair work.

3. Workers’ Compensation Insurance

Required in most states for businesses with employees.
Covers medical expenses and lost wages for work-related injuries.

4. Commercial Auto Insurance

Required if your business owns vehicles for towing or customer services.
Coverage limits vary by state.

Wexford Insurance — **REQUEST A FREE QUOTE**

Recommended but Optional Policies

Commercial Property Insurance: Protects your shop, tools, and equipment.
Pollution Liability Insurance: Covers claims related to hazardous materials, paints, or chemicals.
Professional Liability Insurance: Protects against claims of faulty repairs or errors.
Umbrella Insurance: Provides additional liability coverage above standard limits.

Steps to Meet Insurance Requirements Quickly

Identify State and Local Requirements: Check your state’s Department of Insurance for mandatory coverage and minimum limits.
Review Contractual Obligations: Many lenders and commercial clients require proof of insurance before approving work.
Assess Your Shop’s Risks: Consider the number of employees, customer vehicles handled, and shop equipment.
Request a Tailored Quote from a Specialist: Working with an insurer familiar with auto body shops, like Wexford Insurance, ensures all legal and contractual requirements are met efficiently.