Auto Service Repair Shop Insurance

Get My Quote

Or call for your free quote:

Get the best small business insurance quotes online & info on cost, coverage, minimum requirements, certificates & more.

Auto Service Repair Shop Insurance Policy Information

Auto Service Repair Shop Insurance

Auto Service Repair Shop Insurance. Automobile repair shops offer a wide variety of mechanical services, from engine repair to tune-ups. The operation may be stand-alone or be part of another business such as an automobile dealership or filling station. They may specialize in a specific type of automotive repair, such as transmissions or brakes, or service other types of motorized vehicles, such as snowmobiles or recreational vehicles. Some repair or rebuild parts such as brake drums, or custom-make old, difficult-to-replace parts.

Operations may include gasoline or diesel fuel sales or the retail sales of automobile accessories and tools. Normally, auto repair shops perform body work or painting only when incidental to other repairs.

Additional services can include towing, auto club affiliations, pickup and delivery of customers, and the loan or rental of replacement vehicles. Some will have a mobile unit to perform repairs to stranded vehicles or at the customer's location.

Is your auto shop totally protected from liability? If you own an auto service shop or garage, then having the right business insurance coverage in place makes a lot of sense. Just one lawsuit can really negatively affect your bottom line and leave you holding the financial bag for monetary awards. With a business owner's policy, known as a BOP policy in the insurance world, you effectively mitigate your risks and put your business in a better place for success.

A auto service repair shop insurance business owner's policy can provide you with protection if you find yourself on the receiving end of a lawsuit.

Auto service repair shop insurance protects your garage from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked auto services & repair insurance questions:


How Much Does Auto Service Repair Shop Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small auto repair and service businesses ranges from $57 to $79 per month based on location, size, payroll, sales and experience.

What Type Of Insurance Do Auto Repair And Service Shops Need?

The most common small business insurance policies auto services businesses carry are: general liability, garagekeepers, commercial auto, and workers' compensation. There are other specialty coverages available based on their specific operations.

What Is An Auto Service Repair Shop Insurance Business Owner's Policy?

This auto service repair shop insurance protects you from the many potential cliams your garage faces. Local drivers no doubt depend on your business to keep their autos running in optimal condition. If your auto business faces a peril that causes a business interruption, how quickly can your current insurance help you recover? Many different events loom as possibilities, threatening day-to-day activities of running your business. With a complete insurance solution, you can enjoy peace of mind in knowing that you are protected from having to be out the money to settle with a litigant.

How Does BOP Protect Auto Service & Repair Businesses?

Auto Mechanic Doing Service

A BOP policy combines commercial property insurance, commercial liability insurance, garagekeepers and business income insurance into one package. Commercial property insurance protects your physical building and location along with its contents should you experience a covered event, such as a fire, burst pipe, or weather phenomena that causes your business damages.

A liability policy protects your auto business when a customer slips and falls on your premises or your workers or the products and services that you sell cause damage to customers, other people, or property. Garage keepers protects you fro damages done to your customers vehicles while they are you in care, custodya nd control. With a business income policy, your business is protected from income loss due to a covered event. For example, if a tornado hits your shop, then you are protected from loss income while reasonable repairs are made.

This auto service repair shop insurance is one of the most affordable means to cover your business and affords a minimal amount of protection against potential pitfalls. However, you can invariably bundle other policy types with a BOP policy to get a more comprehensive layer of protection to shield your business from financial loss and the fallout of any claims against you. Some of the most common addendums to BOP policies and rider policies that are sold to garage and auto repair shops include:

  • Garagekeepers liability insurance. This type of coverage enhances the commercial property liability coverage that you carry. It ensures complete coverage for your shop and covers damages arising from the operation of your garage. It is an essential policy for most garage owners.
  • Garagekeeper's insurance. Keeping customers' autos on site means carrying garage keeper's insurance. This policy protects your customers' vehicles from damage during the course of being storage in your facility. Your business may need this coverage in order to operate in your state, but either way, it is a valuable coverage to own.
  • Medical payments coverage. If someone is injured on your premises, whether you own or lease your garage, this type of insurance pays for any medical expenses related to the injury.
  • Commercial auto insurance coverage. For any vehicles that your business uses in a business capacity, you need to carry auto insurance rated for commercial use. This includes service vehicles that you deploy to help stranded motorists as well as any vehicle used for strictly business purposes.
  • Equipment breakdown protection. Guard against the financial loss that follows a mechanical breakdown, power surge, operator error or burn out with this type of coverage.
  • Employee dishonesty policies. If an employee steals from you, then you can recover damages under this policy. This is a must-have policy type in most shops.
  • Employment practices policies. Choose an employment practices liability policy to protect your business from financial damages due to harassment, discrimination or wrongful firing.

Other Auto Service Repair Shop Insurance Coverages

If you have several employees, you should also consider worker's compensation as a bundled add on to your other policy types. This coverage provides workers who are injured at work or who become ill due to a work-related peril with wage replacement and medical payments. In most states, this coverage is a requirement, and in some states, the cost comes right out of your business taxes. Work with your agent to find out the requirements and stay compliant with local and state laws.

Finding the right level of protection when you operate a garage or auto repair shop is important to your ongoing success. Working with a seasoned independent agent has its advantages, since your agent doesn't work for a specific company and can help you check the rates available with several big insurance companies at once. This ensures you get the best deal on your coverage without cutting corners. As a bonus, your agent can also help you understand the nuances of your industry so that you choose the right coverage types and policy limits to totally protect your business.

Automobile Service Repair Shop's Risks & Exposures

Mechanic Doing Auto Repair

Premises liability exposure comes from slips and falls due to public access to the premises. Customer waiting areas should be provided for customers waiting on repairs. Customers must not be permitted in the garage area. Floor coverings should be in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and be well marked, with backup lighting systems in case of power failure.

Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. If the premises is open after dark, there must be adequate lighting and appropriate security for the area. Cars in the parking lot present an attractive nuisance hazard. Chains should be in place to prevent entrance after hours.

Garagekeepers exposure comes from damage that can occur to customers' vehicles while in the repair shop's care, custody and control. Access to these vehicles should be prevented. Keys to customers' vehicles should be kept in a locked box, with proper identification required to prevent handing the customer's car to the wrong owner. Lots must be well lighted, with chains in place to prevent transport. Fences and other security may also be appropriate.

Workers compensation exposures are high. Brake turning, welding or other repair work must be handled only with appropriate safety equipment, especially eye protection. Lifting of a vehicle by hoists, jacks, and other mechanical means can result in injury should the equipment malfunction. Hoists must be well maintained and procedures in place to prevent vehicles from falling. Workers can slip and fall, or incur back injuries, sprains, strains or hernias from lifting.

If the shop sells batteries, leakage or spilling of battery acids can cause burns on contact with skin and respiratory problems when inhaled. Employees should be provided with safety equipment, trained on proper handling techniques, and have conveying devices available to assist with heavy lifting. Employees performing maintenance or repair work on customers' vehicles should be properly trained.

Products liability exposure can be high due to the potential for an accident in the event that the vehicle is not properly repaired. There should be a check-off procedure in place prior to release of the vehicle to the customer to prevent its being returned to the customer with vital functions not working properly. If the repair shop directly imports or reconditions items for resale, the exposure increases to the point of a manufacturer.

Environmental impairment exposures can be significant due to the disposal of used lubricants, oils, degreasers, solvents and batteries. Adequate procedures should be in place and must be followed to prevent any leakage or contamination. Contracts should be in place to dispose of all environmentally dangerous chemicals.

Property exposure comes from flammables such as lubricants, oils, degreasers, and solvents, used in the repair operations. They must be properly labeled, stored and separated. Aerosols and flammable additives contribute to the overall fire load. Welding is often a part of the operation and needs to be evaluated for proper handling of the tanks and gases, as well as adequate separation from the other operations with either a separate room or flash/welding curtains.

Tires do not catch on fire quickly; however, when they do burn, the fire is difficult to put out and an oily smoke permeates the entire area. Theft is a concern because auto parts are considered to be target items. Appropriate security controls must be taken including alarms, lighting, and physical barriers prohibiting access to the premises after hours.

Crime exposures are from employee dishonesty and theft of money and securities either from holdup or safe burglary. Employee dishonesty is controlled through background checks, inventory monitoring, control of the cash register, disciplined controls and division of duties. Physical audits should be conducted at least annually. Theft of money and securities prevention requires controls of monies kept in the cash drawers and regular bank drops.

Inland marine exposures are from accounts receivable if the repair shop offers credit, computers to monitor inventory and for diagnostics, goods in transit if parts are delivered to customers, and valuable papers and records due to customers' and vendors' records. Backup copies of all records, including computer records, should be made and stored off premises.

Commercial Auto exposures are generally limited to owned vehicles being used for errands to pick up needed supplies. All employee drivers should have an appropriate driver's license and their MVRs regularly checked. All vehicles must be regularly maintained with records retained. Towing presents a more serious exposure due to the potential for damage to the vehicles being towed. All tow truck drivers must be experienced in towing. Towing vehicles must be regularly checked, particularly the hoists and tow bars.

If vehicles are rented to customers, the dealership should keep a copy of the renter's driver's license and proof of insurance. The rental contract should identify permitted drivers and state that unlicensed or minor drivers are not permitted. It should also include a hold-harmless agreement in which renters agree to assume responsibility for the operation of the vehicle to limit the business's exposure to only vicarious liability.

If a collision damage waiver is offered, the customer's signature is needed to document whether this was purchased or declined. The customer should also be required to sign a pre-inspection form to minimize disputes when the vehicle is returned with damages. Vehicles that are rented should be inspected and reconditioned before being rented again.

Commercial Insurance And Business Industry Classification

  • SIC CODE: Automotive Repair Shops: 7538 General Automotive Repair Shops, 7532 Top, Body, and Upholstery Repair Shops and Paint Shops, 7533 Automotive Exhaust System Repair Shops, 7534 Tire Retreading and Repair Shops, 7536 Automotive Glass Replacement Shops, 7537 Automotive Transmission Repair Shops, 7539 Automotive Repair Shops, Not Elsewhere Classified
  • NAICS CODE: 811111 General Automotive Repair, 811112 Automotive Exhaust System Repair, 811113 Automotive Transmission Repair, 811118 Other Automotive Mechanical and Electrical Repair and Maintenance, 811121 Automotive Body, Paint and Interior Repair and Maintenance, 811122 Automotive Glass Replacement Shops, 811198 All Other Automotive Repair and Maintenance
  • Suggested ISO General Liability Code(s): 10072, 10073, 10075
  • Suggested Workers Compensation Code(s): 8380, 8393, 9516

Description For SIC Code 7538: General Automotive Repair Shops

Division I: Services | Major Group 75: Automotive Repair, Services, And Parking | Industry Group 753: Automotive Repair Shops

7538 General Automotive Repair Shops: Establishments primarily engaged in general automotive repair.

  • Automotive repair shops, general
  • Diesel engine repair, automotive
  • Engine repair, automotive
  • Engine repair, truck: except industrial
  • Garages, general automotive repair and service
  • Motor repair, automotive
  • Truck engine repair, except industrial

Description For SIC Code 7532: Top, Body, and Upholstery Repair Shops and Paint Shops

Division I: Services | Major Group 75: Automotive Repair, Services, And Parking | Industry Group 753: Automotive Repair Shops

7532 Top, Body, and Upholstery Repair Shops and Paint Shops: Establishments primarily engaged in the repair of automotive tops, bodies, and interiors, or automotive painting and refinishing. Also included in this industry are establishments primarily engaged in customizing automobiles, trucks, and vans except on a factory basis. Establishments primarily engaged in customizing automobiles, trucks, and vans on a factory basis are classified in Manufacturing, Industry Group 371.

  • Antique and classic automobile restoration
  • Automotive body shops
  • Automotive interior shops
  • Automotive paint shops
  • Automotive tops (canvas or plastic), installation, repair, or sales and
  • Automotive trim shops
  • Bump shops (automotive repair)
  • Collision shops, automotive
  • Customizing automobiles, trucks or vans: except on a factory basis
  • Upholstery repair, automotive
  • Van conversions, except on a factory basis

Description For SIC Code 7533: Automotive Exhaust System Repair Shops

Division I: Services | Major Group 75: Automotive Repair, Services, And Parking | Industry Group 753: Automotive Repair Shops

7533: Automotive Exhaust System Repair Shops: Establishments primarily engaged in the installation, repair, or sale and installation of automotive exhaust systems. The sale of mufflers, tail pipes, and catalytic converters is considered to be incidental to the installation of these products.

  • Catalytic converters, automotive: installation, repair, or sales and
  • Exhaust system services, automotive
  • Mufflers, automotive: installation, repair, or sales and installation

Description For SIC Code 7534: Tire Retreading and Repair Shops

Division I: Services | Major Group 75: Automotive Repair, Services, And Parking | Industry Group 753: Automotive Repair Shops

7534 Tire Retreading and Repair Shops: Establishments primarily engaged in repairing and retreading automotive tires. Establishments classified here may either retread customers' tires or retread tires for sale or exchange to the user or the trade.

  • Rebuilding and retreading tires for the trade
  • Retreading tires
  • Tire recapping
  • Tire repair shops
  • Tire studding and restudding
  • Vulcanizing tires and tubes

Description For SIC Code 7536: Automotive Glass Replacement Shops

Division I: Services | Major Group 75: Automotive Repair, Services, And Parking | Industry Group 753: Automotive Repair Shops

7536 Automotive Glass Replacement Shops: Establishments primarily engaged in the installation, repair, or sales and installation of automotive glass. The sale of the glass is considered incidental to the replacement.

  • Glass replacement and repair, automotive

Description For SIC Code 7537: Automotive Transmission Repair Shops

Division I: Services | Major Group 75: Automotive Repair, Services, And Parking | Industry Group 753: Automotive Repair Shops

7537 Automotive Transmission Repair Shops: Establishments primarily engaged in the installation, repair, or sales and installation of automotive transmissions. The sale of transmissions and related parts is considered incidental to the installation or repair of these products.

  • Automatic transmission repair, automotive
  • Transmission repair, automotive
  • Transmission, automotive: installation, repair, or sale and installation

7536 Automotive Glass Replacement Shops: Establishments primarily engaged in the installation, repair, or sales and installation of automotive glass. The sale of the glass is considered incidental to the replacement.

  • Glass replacement and repair, automotive

Description For SIC Code 7539: Automotive Repair Shops, Not Elsewhere Classified

Division I: Services | Major Group 75: Automotive Repair, Services, And Parking | Industry Group 753: Automotive Repair Shops

7539 Automotive Repair Shops, Not Elsewhere Classified: Establishments primarily engaged in specialized automotive repair, not elsewhere classified, such as fuel service (carburetor repair), brake relining, front-end and wheel alignment, and radiator repair. Establishments primarily engaged in automotive welding are classified in Industry 7692.

  • Air-conditioner repair, automotive
  • Automotive springs, rebuilding and repair
  • Axle straightening, automotive
  • Brake linings, sale and installation
  • Brake repairing, automotive
  • Carburetor repair
  • Electrical service, automotive (battery and ignition repair)
  • Frame repair shops, automotive
  • Front end repair, automotive
  • Fuel system conversion, automotive
  • Fuel system repair, automotive
  • Generator and starter repair, automotive
  • Radiator repair shops, automotive
  • Wheel alignment, automotive

Auto Service Repair Insurance - The Bottom Line

To find out exactly what type of auto service and repair shop insurance you need and how much coverage you should have, speak to a good insurance agent to go over your options.

Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).


Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

Additional Resources For Auto Service & Repair Insurance

Read useful small business auto service and repair insurance policy information. In an aotu related business, you need to have the right type of commercial insurance coverage so that your garage, employees, and customers vehices & other property is protected.


Auto Service Insurance

There is a Auto Service Risks Program is an enhancement of the Commercial Package Policy that is available to certain Auto Service Operations.

Automobile repair shops and garages offer a wide variety of mechanical services, from engine repair to tune-ups. The operation may be stand-alone or be part of another business such as an automobile dealership or filling station.

Gasoline stations are normally limited to the dispensing of gasoline, kerosene, diesel or fuel oil with incidental sales of auto accessories and pre-packaged snack food items. Larger gasoline stations may offer other services, such as auto repair, retail sales of food or auto parts, snack bar or restaurant, propane tank exchange, towing, or baths and overnight lodging facilities for truckers.

Car washes provide facilities for cleaning automobiles and other motor vehicles. Some are drive-through with either partially or fully automated conveyance of the vehicle throughout the operation. Hand washing, waxing, or interior cleaning of the vehicle may be offered, with customers sent to a waiting area. Damage to the customers' vehicles is the primary exposure as machinery and washes can break antennas, pull off stripping, crack glass and damage tires.

The three basic types of risks that are contemplated by the Auto Service Risks Program include:

  • Repair Shops - operations primarily engaged in auto repair. This includes shops that do body, fender, radiator, ignition service and paint work.
  • Service Stations- operations primarily engaged in servicing autos. The sale and installation of auto accessories are a part of this category as long as major engine or bodywork is not performed. Car wash facilities are eligible.
  • Storage garages and other parking places.

The following classifications are specifically listed as eligible: Automobile:

  • Quick Lubrication Services
  • Repair or Service Shops
  • Repair Shops–Self Service
  • Rustproofing
  • Storage
    • Car Washes–self-service and full-service
    • Convenience Food/Gasoline Stores–self-service, full-service and combined
    • Gasoline Stations–self-service, full-service and combined
    • Parking–public-open air and not open air

Automobile, motor home, mobile home, trailer, and motorcycle dealers are NOT eligible for this program.

Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income, Equipment Breakdown, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Signs, Valuable Papers and Records, General Liability, Employee Benefits, Environmental Impairment, Underground Storage Tank Liability, Umbrella, Hired and Non-owned Auto & Workers Compensation.

Other commercial insurance policies to consider: Earthquake, Flood, Computer Fraud, Forgery, Goods in Transit, Cyber Liability, Employment-related Practices, Business Automobile Liability and Physical Damage, Garagekeepers and Stop Gap Liability.


Free Business Insurance Quote Click Here