Why Collision Repair Shops Need Garage Liability Insurance

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

Collision repair shops handle valuable customer vehicles and operate heavy equipment daily, exposing them to significant risks. One of the most critical protections for repair shops is garage liability insurance, which safeguards your business against property damage and bodily injury claims.

This guide explains why collision repair shops need garage liability insurance, what it covers, and how Wexford Insurance can help you get a tailored quote.

What Is Garage Liability Insurance?

Garage liability insurance is designed specifically for businesses that service, repair, or store vehicles. Unlike general liability insurance, it addresses risks unique to auto repair and collision shops, such as:

Accidental damage to customer vehicles not covered by garagekeepers insurance
Bodily injuries that occur on your shop premises
Legal costs if your shop is sued for operational accidents

Key Reasons Collision Repair Shops Need Garage Liability Insurance

1. Protects Against Third-Party Injuries

Accidents in your shop can injure customers or visitors. Garage liability insurance covers:

Slip-and-fall incidents
Injuries caused by equipment or tools
Legal defense fees

2. Covers Property Damage

Collision repair shops handle expensive vehicles daily. Even minor damage to a customer’s vehicle or nearby property can lead to costly claims. Garage liability insurance provides financial protection against these incidents.

3. Meets Client and Lender Requirements

Many clients, vendors, and lenders require proof of garage liability insurance before authorizing work, leasing equipment, or financing repairs.

4. Supports Business Continuity

Without insurance, claims can drain business funds and disrupt operations. Garage liability insurance ensures your collision repair shop can continue operating even if an accident occurs.