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Auto Services Insurance

Customized coverage to meet your auto repair business insurance needs.

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Who needs auto services insurance?

The goal of auto services insurance, also known as auto body shop insurance, is to help you recover, stay open and keep moving forward when the unexpected happens - like accidents, lawsuits, property damage, theft, cyber incidents and more. Commercial insurance for mechanics helps protect mechanics, garages, body shops and repair businesses from liability claims, property damage, employee injuries, customer vehicle damage and other business risks. Some examples of repair shops include:

  • General auto repair shops

  • Independent mechanics

  • Automotive service centers

  • Oil change businesses 

  • Brake repair shops

  • Transmission repair shops

  • Tire shops

  • Auto electrical repair shops 

  • Auto body and collision repair shops

What type of insurance does an auto repair shop need?

Running your auto body shop comes with unique risks that require a combination of insurance coverages to help protect against liability claims, property losses, employee injuries and operational disruptions. Examples may include: 

  • General liability insurance - Liability insurance helps provide coverage for bodily injury and property damage to others, as well as legal defense in the event that someone takes you to court. Without it, you would be responsible for paying for negligent acts and legal defense out-of-pocket.
  • Commercial Package Policy (CPP) - Provides protection for your buildings, business personal property, liability risks and specific business risks.
  • Business Income - provides coverage for lost income and extra expenses following an insured loss, while your business is being rebuilt.
  • Auto Services Errors and Omissions – Liability coverage to protect against claims made by clients for damage to their vehicles or inadequate work.
  • Shop Building Value(s) – On-site coverage analysis and property valuation.
  • Employee Tools – Extends your coverage to apply to employees’ tools while on your property.
  • Garagekeepers Liability – Coverage for any customer’s auto while left on your property for service, repair, storage or safekeeping.

Additional insurance auto repair shops may need

  • Business umbrella coverage - This coverage protects your business if and when you reach the limit on your liability insurance. Umbrella covers you for large or unexpected claims, which are potentially devastating. That way, one bad day won’t undo years of your work.  
  • Workers compensation - Accidents happen at auto repair shops all the time. Employees could slip and fall, injure themselves or a variety of other things, and that could mean medical expenses and lost wages. Workers’ comp insurance covers those expenses, so business doesn’t stop because of a bad moment. In many states, it’s also legally required coverage.
  • Data breach coverage - Hackers leave no stone unturned trying to find sensitive financial information. If your customers were ever exposed, you’d be on the hook for things like identity theft monitoring and remediation services, credit monitoring, maybe even PR or crisis management costs. That’s why data breach coverage is so important. You’ll stay up and running with $10,000 automatically and an option to increase up to $250,000 in coverage.
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How much does auto repair shop insurance cost?

At COUNTRY Financial, we help you customize your auto shop insurance with broad general coverage and specific add-ons unique to you, so the cost can vary. Factors that affect your auto repair shop insurance costs include: 

  • The size of your business
  • Coverages and limits you select
  • Your claims history
  • Number of employees
  • Property you own

FAQs

Auto repair shop insurance, or mechanic shop insurance, is a combination of coverages to help protect against liability claims, property losses, employee injuries and operational disruptions. Coverages can include: 

  • Auto Services Errors and Omissions
  • Shop Building Value(s)
  • Commercial Package Policy 
  • Employee Tools
  • Garagekeepers Liability
  • Business umbrella coverage
  • Workers' compensation
  • Data breach coverage

Coverage can vary by policy, coverage level, insurer and state. Largely, though, it can cover things like:

  • Third-party injuries and property damage
  • Employee injuries and workers’ compensation, where required
  • Legal defense costs and settlements
  • Data breach

The amount of auto repair shop liability insurance you need depends on your business size, customer traffic, annual revenue and overall risk exposure. Many shops choose general liability limits that help cover injuries, property damage claims, legal expenses and more. A licensed insurance professional can help determine the right coverage limits for your specific operation.

Factors that affect your auto repair shop insurance include:

  • The size of your business
  • Coverages and limits you select
  • Your claims history
  • Number of employees
  • The type of merchandise you sell
  • Property you own

You may be able to reduce your insurance costs by:

  • Bundling policies into a Commercial Package Policy (CPP)

  • Maintaining equipment regularly

  • Implementing workplace safety procedures

  • Training employees on vehicle safety practices

  • Installing security systems

While auto repair shop business insurance (and business insurance in general) isn't necessarily required by law, it's not something you should go without. Consider a few of the biggest threats to small businesses:

  1. Property protection: Property holdings are likely your largest asset; it's vital you protect them.
  2. Interruption of business: Many small businesses never reopen after a natural disaster. If your business isn't insured, yours could be one of them.
  3. Liability losses: Managing personnel and dealing with customers opens your business up to a multitude of lawsuits. Proper protection can help keep your business covered.
  4. Data management: If your business stores any records electronically, you know the importance of robust cybersecurity. But you may not have known that you can also purchase insurance coverage to help protect your business' data.

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COUNTRY Financial® is a family of affiliated companies (collectively, COUNTRY) located in Bloomington, IL. Learn more about who we are.

Business insurance policies issued by COUNTRY Mutual Insurance Company®, Bloomington, IL.