Top Insurance Coverage Options for Auto Repair Shops Explained
- Nate Jones, CPCU, ARM, CLCS, AU
- 11 hours ago
- 3 min read
Owning an auto repair shop comes with many risks, from vehicle damage and customer injuries to equipment breakdowns. Proper insurance coverage is essential to protect your business, employees, and customers.
In this guide, we’ll explain the top insurance coverage options for auto repair shops and why each is important.
Essential Auto Repair Shop Insurances
What It Covers:
Third-party bodily injury
Property damage
Legal defense costs
Why You Need It: General liability insurance is essential for any auto repair shop. If a customer slips in your shop or a client’s car is accidentally damaged, this coverage helps protect your business financially.
What It Covers:
Shop building and structure
Equipment, tools, and machinery
Inventory and supplies
Why You Need It:
Commercial property insurance protects your investment in physical assets. Whether it’s fire, theft, or natural disasters, this coverage helps ensure your shop can continue operating after an unexpected event.
What It Covers:
Damage to vehicles in your care, custody, or control
Customer injuries related to your services
Legal costs from vehicle damage claims
Why You Need It:
Garage liability insurance is critical for shops that service, repair, or store customer vehicles. It fills the gap between general liability insurance and commercial auto insurance.
What It Covers:
Lifts, diagnostic tools, air compressors, and hand tools
Replacement or repair costs due to theft, fire, or damage
Why You Need It:
Auto repair equipment is expensive. Equipment insurance protects your investment so your shop can stay operational even if something breaks or is stolen.
What It Covers:
Company-owned vehicles used for customer service, deliveries, or towing
Liability for accidents, property damage, and injuries
Why You Need It:
If your shop uses vans, tow trucks, or loaner vehicles, commercial auto insurance is essential. Personal auto insurance will not cover business use, leaving you exposed to significant risk.
What It Covers:
Employee medical expenses and lost wages for on-the-job injuries
Legal costs if employees sue for work-related injuries
Why You Need It:
Most states require workers’ compensation for employees. It protects both your staff and your business from financial liability due to workplace injuries.
Optional Coverages
Depending on your shop’s operations, consider these additional coverages:
Business Interruption Insurance: Protects income if your shop is temporarily closed due to a covered loss
Cyber Liability Insurance: Protects customer data if you manage digital records or online payments
Employment Practices Liability Insurance (EPLI): Protects against claims of harassment, discrimination, or wrongful termination
Protect Your Auto Repair Shop with Wexford Insurance
Every auto repair shop is different, so it’s important to get a customized insurance plan. At Wexford Insurance, we specialize in helping shop owners nationwide find coverage that fits their needs and budget.
Final Thoughts
Having the right insurance coverage is as important as skilled technicians and high-quality equipment. From general liability to equipment and commercial auto insurance, a comprehensive plan ensures your auto repair shop is protected against unforeseen risks.
Contact Wexford Insurance today.