Top Insurance Coverage Options for Auto Body Shops Explained
- Nate Jones, CPCU, ARM, CLCS, AU
- 46 minutes ago
- 2 min read
Operating an auto body repair shop involves significant financial risk, from expensive equipment to customer vehicles in your care. Having the right insurance coverage protects your business, employees, and assets, giving you peace of mind and compliance with industry standards.
This guide explains the most important insurance policies for auto body shop owners and why each is essential.
Why It’s Important
Protects your business against third-party claims for bodily injury or property damage
Covers legal defense costs if a customer sues your shop
Why It’s Important
Covers injuries and damages related to garage operations, including accidents in your shop
Essential for shops handling multiple vehicles daily
Why It’s Important
Protects customer vehicles while in your care, custody, or control
Covers damage from fire, theft, vandalism, or accidents
Why It’s Important
Covers the shop building, equipment, tools, and inventory
Essential for protecting against fire, theft, or natural disasters
Why It’s Important
Mandatory if you have employees
Covers medical expenses and lost wages if an employee is injured on the job
Why It’s Important
Covers repair or replacement of expensive tools, machinery, and specialized auto body equipment
Reduces downtime and financial loss if equipment is damaged or stolen
Why It’s Important
Covers company-owned vehicles used for towing, parts delivery, or transportation of customer vehicles
Protects against accidents, damage, or liability claims
Additional Coverage Options
Business Interruption Insurance (optional): Protects lost income if operations are halted due to a covered event
Environmental Liability Insurance: Covers pollution or hazardous material incidents from painting or repair operations
Tips for Choosing the Right Insurance
Assess your shop’s unique risks and equipment
Combine policies for cost savings and comprehensive coverage
Regularly review coverage limits and adjust as your business grows
Work with an insurance provider familiar with auto body shops
At Wexford Insurance, we specialize in helping auto body shop owners get the right insurance coverage to protect their business and assets.
Final Thoughts
Having the right insurance coverage is critical to running a successful and secure auto body shop. From general liability to garage keepers, commercial property, and equipment insurance, each policy plays a vital role in protecting your business, employees, and customer vehicles.
Partner with Wexford Insurance to ensure your coverage is comprehensive, cost-effective, and tailored to your shop’s needs.
Contact us today.
