Auto Repair Shop Insurance

Auto Repair Shop Insurance

Protecting garages, vehicles, and daily operations

Auto repair shops face constant exposure to customer vehicle damage, employee injuries, equipment loss, and liability claims. Whether operating a small mechanic shop, body shop, or full-service repair facility, working on customer vehicles creates unique risks that standard business policies may not fully cover. Even a minor mistake or accident can result in expensive repairs, lawsuits, or business interruption.

Properly structured insurance helps protect your shop, your employees, and the vehicles entrusted to your care.

Key Risks in Auto Repair Operations

Auto repair businesses face exposure related to:

• Damage to customer vehicles

• Garage liability claims

• Employee injuries

• Fire or property damage

• Tool and equipment theft

• Test drive accidents

• Environmental or fluid spills

Losses can occur even in well-run shops.

Core Coverages for Auto Repair Shops

Auto repair insurance programs typically include:

Garage Liability
Protects against bodily injury and property damage claims arising from garage operations and vehicle servicing.

Garagekeepers Liability
Covers damage to customer vehicles while in the shop’s care, custody, or control.

Garage Liability
Protects against bodily injury and property damage claims related to garage operations.

Garagekeepers Coverage
Protects customer vehicles while in your care, custody, or control.

Commercial Property
Covers the building, tools, lifts, and equipment against covered physical loss.

Workers Compensation
Provides coverage for employee injuries as required by law.

Commercial Auto
Covers shop-owned vehicles, tow trucks, or service vehicles.

Pollution Liability (when needed)
Protects against claims involving fuel, oil, or chemical spills.

Umbrella / Excess Liability
Provides additional limits for severe claims.

What’s Commonly Overlooked

Auto repair insurance programs are often weakened by:

• Missing garagekeepers coverage

• Underinsured tools or equipment

• Inadequate liability limits

• No pollution coverage

• Failure to cover test drives

• Gaps between garage liability and auto coverage

These issues often appear only after a claim occurs.

Real-World Claim Examples

• A customer vehicle is damaged during repair

• Fire damages the shop and equipment

• A mechanic is injured while working

• A test drive results in an accident

• A fluid spill leads to cleanup costs

Even one claim can impact the ability to operate.

Why Proper Placement Matters

Auto repair coverage varies significantly based on:

• Type of work performed

• Number of employees

• Value of customer vehicles

• Equipment and tools used

• Environmental exposure

• Lease or contract requirements

Improper placement can result in denied claims or uncovered losses.

Our Approach

At Cory Washington & Co., we structure auto repair shop insurance based on the type of work you perform, the value of vehicles you service, and the equipment you use. We coordinate garage liability, garagekeepers, property, and pollution coverage to ensure your business is protected from the real risks of working on vehicles every day.

When customers trust you with their vehicle, the right protection matters.