What insurance do I need for an auto repair shop?

There are over 175,000 auto repair shops in the U.S. today. While their services and specialties may vary, auto repairs shops have specific insurance needs. Most owners choose a combination of coverage that helps them handle the high costs of repairing equipment or defending their shop against lawsuits.

We’re big fans of small businesses like yours and want to do everything in our power to help you succeed. As your advocate, we’ve put together this quick guide. We also recommend a one-on-one insurance consultation with a licensed agent to find out if your auto repair shop has special risks you didn’t know about – so you can feel protected when your customer hits the highway.

Pro tip: Get more than one insurance quote. Insurance carriers vary in which types of businesses they prefer to cover. You can often get a better rate and coverage from a carrier who specializes in auto repair shops.

As a starting point, you’ll want to look into:

Property insurance

This helps you repair or replace your garage and the valuable equipment in it (tire changer, wheel balancer, specialized tools and more) if they’re damaged by vandalism, theft, fire or other disasters.

Business interruption insurance

Compensates your auto repair shop for lost revenue if you have to close down your garage for repairs or change locations because of property damage.

General liability insurance

Covers you if you’re sued by someone who gets hurt in your auto repair shop. A customer could slip on grease or other liquids – or harm themselves on your machinery.

(Many landlords, vendors and partners require this.)

Garage keeper’s liability insurance

Covers the cost of dents and other accidental damages that occur to your customers’ vehicles while they’re sitting in your garage.

Garage liability insurance

(Yes, this is different from garage keeper’s liability.) Covers you if you have an accident on the road while driving a customer’s car to diagnose their mechanical problems.

Broad form products insurance

Covers the cost of unknowingly installing a faulty replacement part or accidentally damaging a part in your customer’s vehicle.

Workers' compensation insurance

Pays for your employees’ medical expenses and lost wages if they’re injured in your garage – which also shields you from employee lawsuits.

(You’re legally required to carry this in most states if you have employees.)

No auto repair shop is exactly like yours.

You may have specialized insurance needs. A licensed Mylo agent can help you figure out the best plan to protect your auto repair shop. Mylo is part of Lockton Companies – the world’s largest independent insurance broker – with 50+ years of experience. We help you compare quotes from leading carriers instead of selling our own insurance, which lets us give you an objective recommendation.

Just take a moment to answer a few questions and a licensed expert will be in touch with your personalized auto repair shop insurance consultation.