Safety, Concerns and Insurance for Auto Repair Shops

Insurance for Auto Repair Shops

Because many garage owners are in the business of auto body repair, they require a specific insurance program to effectively address the unique risks and exposures their businesses face on a daily basis. The automotive repair and maintenance industry employs more than 1.3 million U.S. workers and it involves a number of serious health risks, along with the threat of bodily injury to workers and customers.


Insurance for auto repair shops can help reduce liability concerns in a number of areas, but some safety measures can reduce many issues. Owners can take the following actions to stem the likelihood of accidents:

  • Train workers to identify chemical, fire, noise, safety and environmental concerns


  • Switch to safer products, such as water-based cleaners, whenever possible


  • Inspect all tools and equipment regularly


  • Ask workers to report hazards immediately


  • Require workers to report symptoms of illness immediately


  • Wear masks to protect against cancer and lung disease from asbestos


  • Wear protective gloves and other protective equipment when working with solvents and other hazardous materials, and


  • Clean up spills promptly


By instigating safety training on these issues an owner can reduce the odds of workers comp claims, and also protect the business from damage or the threat of lawsuits. In addition to workers comp insurance, available coverages are designed to fit many needs and may include:


  1. Garagekeepers Coverage – Provides physical damage coverage for customers’ vehicles. Available coverage options are; a) that which pays only for damages the owner is legally liable for, or b) coverage that pays for damages to a customers’ vehicle regardless of any legal liability.
  2. Garage Liability Coverage – Provides liability coverage for accidents arising from garage operations resulting in bodily injury, property damage, and personal or advertising injury.
  3. Building and Business Personal Property – Provides coverage for buildings and personal business property, such as tools and computers.
  4. Business Income and Extra Expense – Provides coverage for actual loss of business income if operations cease due to a covered loss and extra expenses incurred due to the loss.
  5. Important Business Documentation Coverage – Coverage for accounts receivable, electronic data and valuable papers could help repair, replace or restore lost electronic and printed business records.
  6. Crime and Fidelity Coverage – Protects the business from loss of money, securities or inventory resulting from acts committed by employees and non-employees. This covers activities such as employee dishonesty, embezzlement, forgery, robbery and burglary.


Insurance for auto repair shops is a valuable coverage that provides much needed protection. Speak to an agent about any questions or concerns.


photo credit: misha maslennikov cc