Common Insurance Claims for Auto Body and Collision Repair Shops
- Nate Jones, CPCU, ARM, CLCS, AU
- 6 days ago
- 2 min read
Auto body and collision repair shops face high-risk operations every day. From handling expensive vehicles to operating heavy equipment, even minor mistakes can lead to costly insurance claims. Understanding common claims helps shop owners reduce risk and maintain adequate coverage.
This guide highlights the most frequent insurance claims in the auto body and collision repair industry and shows how Wexford Insurance can help protect your business.
1. Customer Vehicle Damage Claims
Handling damaged vehicles is the core of auto body work—but accidents happen:
Scratches, dents, or paint damage while in your care
Misplaced or damaged parts
Theft or vandalism while vehicles are stored
Insurance Coverage: Garagekeepers insurance typically covers these claims, protecting your shop from customer property damage expenses.
2. Bodily Injury Claims
Collision repair shops often deal with heavy machinery, lifts, and chemicals. Injuries can occur to:
Customers visiting the shop
Employees handling tools and equipment
Delivery personnel or subcontractors
Insurance Coverage: Garage liability and workers’ compensation insurance cover these incidents.
3. Fire, Theft, and Property Damage Claims
Auto body shops store expensive equipment and vehicles, making them targets for:
Shop fires (paint booths, electrical equipment)
Tool or equipment theft
Vandalism or natural disaster damage
Insurance Coverage: Commercial property insurance protects buildings, tools, and equipment.
4. Vehicle Accidents Involving Shop-Owned Vehicles
Many shops use trucks or vans for towing, parts delivery, or customer transportation. Accidents can occur:
Collisions during transport
Damage to vehicles on the road or at client sites
Insurance Coverage: Commercial auto insurance covers these incidents.
5. Claims Related to Workmanship or Errors
Mistakes during repairs can lead to client complaints or legal action:
Poor paint jobs or incorrect repairs
Missed damage or improper vehicle reassembly
Errors in custom modifications
Insurance Coverage: Professional liability (errors & omissions) insurance protects against claims related to faulty workmanship.
How to Reduce Insurance Claims in Auto Body Shops
Train employees on safety and proper vehicle handling
Maintain organized storage and secure valuable equipment
Implement workplace safety programs and follow OSHA guidelines
Document incidents and maintain a clean claims history
How Wexford Insurance Protects Collision Repair Shops
Wexford Insurance specializes in insurance for auto body and collision repair shops, helping you:
Get coverage tailored to shop size and services
Bundle policies for cost savings
Implement risk management strategies to reduce claims
👉 Get an auto body shop insurance quote from Wexford Insurance today.
