Auto Mechanic Insurance

Why Auto Repair Shops Need Business Insurance

Running an auto repair shop business involves unique risks. Your customers count on your small business to fix their cars and vehicles, but working on them can create serious risks. Using power tools and specialized machinery can be dangerous, but with business insurance, you can have the confidence you need to run your auto repair shop.

Who Needs Mechanic Business Insurance?

Retail tire dealers
Auto repair shops
Mechanics
Body repair and collision shops
Garages
Shops with automotive service excellence (ASE) or I-CAR certifications
Auto sound and communications installation and repair shops

Business Owner’s Policy (BOP) for Auto Mechanics

Many mechanics and automotive repair shops have a Business Owner’s Policy (BOP) for their insurance needs. It combines three types of insurance coverages that many small businesses need to help protect them from different risks.

General liability insurance to help protect your auto repair business from claims that it caused bodily injury or property damage to someone else’s belongings.

Commercial property insurance helps protect the owned or rented building and equipment you use to run your shop. This includes:

Drills
Hand tools
Lifts
Jacks
Air compressors
Battery chargers and jumpers

Business income insurance helps recover some of your lost income if you can’t operate your auto repair shop or garage because of covered property damage.

Find out more about other business service professions we insure:

No Appointment Required

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Taking Care of Your Mechanic Team

Automotive repair shops are nothing without good and reliable mechanics. Chances are you rely on your crew to keep your small business running successfully. We know you work with heavy machinery and power tools that can put your employees at risk. With mechanic insurance, you can help protect your workers and make sure they stay safe on the job.

There were over 16,000 workplace injuries in the auto repair and maintenance industry in 2019.^1,2

Mechanic Injuries

“One of our mechanics was doing a tire rotation and had a car up on the lift. When he went to pick up one of the new tires, he tweaked his back, needing a few days off to recover.”

Workers’ compensation insurance gives your employees benefits to help them recover from a work-related injury or illness. You’ll have access to over 1 million providers and 65,000 pharmacy locations in the country, so your employees can get service wherever they are.

Faulty Work

“We sent a customer’s car to our detailing vendor for help with a paint touch up. When the customer got their car back, they said the paint was peeling off. We found out the vendor used a new product and it was not professional level at all.”

We offer coverage for faulty work and defective products if you or a third-party company does the repairs.

Covering Your Auto Shop’s Property

The tools and equipment you use to run your auto repair shop can be very expensive, but they’re necessary to do your job efficiently and correctly. If your tools get damaged or stolen, it could prevent you from operating your business. That’s why auto repair shop insurance is important to have.

From tools to lifts, auto repair shop equipment can cost tens of thousands of dollars.³

Stolen Tools

“I opened my garage one morning to see my toolboxes all over the ground and equipment missing from them. I realized the back door to our shop was never locked the night before.”

With commercial property insurance, we can help cover your costs to replace your stolen business property, tools and equipment.

Stolen Customer Payment Information

“We use a third-party company to help with our payment processing system. They got hacked and we found out that the hackers took some of our customers’ names and payment information.”

Data breach insurance can help cover your costs to respond to a breach if personally identifiable information gets lost or stolen. Some insurance companies call this coverage cyber liability insurance.

Covering Your Auto Repair Shop’s Operations

Unexpected events can cause damages to your auto repair shop. They can even prevent you from operating. From fires and storms to burglary and theft, protecting your small business from these risks is important. With auto repair shop business insurance, you can have peace of mind from the accidents you can’t prevent.

Fires caused an estimated $14.8 billion in damages in 2019.⁴

Garage Damage

“A fire broke out in our garage and spread throughout the building. Half of our garage and equipment was heavily damaged.”

A BOP can help prepare your business if the unexpected happens. This policy can help pay for damages to your garage and equipment, and replace some of your lost income if you can’t operate.

Lost Customer Belongings

“We were working on a customer’s vehicle and had to move some of their belongings they had on the seat. When the customer picked their car up, they claimed their backpack was missing.”

Our garage keepers coverage helps pay for the loss of a customer’s personal property while it’s in your care, custody or control.

Get Mechanic Insurance Made for Your Business

Running a small business is hard work. As an auto repair shop owner, you deal with unique risks and challenges. Our specialists have helped over 1 million small business owners like you and they’re here to help make sure you are protected. They can help get you the right types of coverage and work with you to create a mechanic insurance policy that fits your business best.