What business insurance does a Michigan auto repair shop need?
Protect your business and meet your legal requirements
Updated 7/24/26
Your automotive repair shop keeps Michigan on the road! Unfortunately, one surprise expense (a customer who claims you installed faulty brakes or an employee who gets burned by hot engine parts) can put your whole company at risk. We believe in your business and want you to have affordable insurance that meets state requirements and protects your property, team and income. This guide breaks down:
- Michigan's required coverages
- The most recommended protections
- Some typical costs of business insurance
- How to save with fast quotes from top-rated insurance carriers
SHORT SUMMARY (because we know you're busy under the hood!)
- Automotive repair businesses in Michigan face specific risks that require customized insurance coverage.
A Business Owner’s Policy for auto repair companies can save you money by bundling general liability, property insurance and optional business interruption coverage.
General liability insurance covers injuries and damages caused by your business, as well as advertising-related claims.
- Auto repair shop property insurance helps replace or repair damaged equipment, furnishings and more.
- Commercial auto for auto repair companies is required in Michigan if you own or use vehicles for work.
Workers’ compensation for auto repair professionals is required in Michigan if you have employees.
- Commercial umbrella insurance for auto repair businesses provides extra coverage when other key policies reach their limits.
- Working with Mylo can help you find the right coverage at the best value.
The 3 coverages most Michigan auto repair shops need
Here are three essential coverages every auto repair professional should consider to stay protected and profitable:
1. Business Owner's Policy for automotive repair businesses
A business owner’s policy (BOP) is a smart starting point for auto repair shops. It bundles key coverages into one affordable package. Your BOP typically includes:
GENERAL LIABILITY FOR AUTO REPAIR BUSINESSES covers legal and medical costs if a customer or visitor is injured – or their property is damaged – while they're in your shop. It also protects you from advertising-related claims. Examples:
- A visitor slips on oil or a loose screw in your space
- A car in your shop gets damaged by hot equipment during a repair
- Another repair business claims you stole their name or slogan
AUTO REPAIR SHOP PROPERTY INSURANCE helps you repair or replace your building, tools, lifts, diagnostic machines and inventory if disaster strikes – like fire, theft or vandalism. Examples:
- Storm damage ruins your electrical tools or rusts out manual tools
- A break-in results in stolen equipment and parts
BUSINESS INTERRUPTION INSURANCE replaces lost income if you need to temporarily close due to covered property damage.
Based on actual Mylo data, a Business Owner's Policy in Michigan typically costs between $187-$248 a month.
2. Commercial auto for automotive repair companies (required in Michigan)
If you use company-owned or personal vehicles on the job, Michigan requires you to cover them with commercial auto insurance.
- Helps pay for damages or injuries your vehicles cause to others or their property
- Can also pay for physical damage to your vehicles (optional)
Based on actual Mylo data, commercial auto in Michigan typically costs between $227-$313 a month.
3. Workers' compensation for auto repair business (required in Michigan)
Michigan requires you to carry worker's comp if you have three or more employees (or employed one person for 35 hours or more per week for 13 weeks or longer in the past year). This important coverage provides medical care and replaces lost wages for staff injuries and shields you from most employee lawsuits. Examples:
- A mechanic suffers burns from hot engine parts
- An employee has a back injury lifting heavy tires
Based on actual Mylo data, worker's comp in Michigan typically costs between $88-$114 a month.
Ready to get your free quote now and see how much you can save on these and other coverages you may need?
Depending on your shop, you may also need:
1. Garagekeepers Insurance
This specialized coverage protects customer vehicles while they are in your care, custody, or control. Examples:
- A customer’s car is stolen from your lot
- A fire damages vehicles stored overnight in your garage
2. Commercial umbrella insurance for auto repair companies
Think of this as insurance for your insurance! A commercial umbrella insurance policy provides extra protection when other key policies such as your general liability and commercial auto reach their limits, which helps you protect your company's financial assets.
Based on actual Mylo data, a commercial umbrella policy in Michigan typically costs around $190 a month.
These coverages are legally required in Michigan:
4. Commercial auto for automotive repair companies (required in Michigan)
If you use company-owned or personal vehicles on the job, Michigan requires you to cover them with commercial auto insurance.
Based on actual Mylo data, commercial auto in Michigan typically costs between $227-$313 a month.
3. Workers' compensation for auto repair business (required in Michigan)
Michigan requires you to carry worker's comp if you have three or more employees (or employed one person for 35 hours or more per week for 13 weeks or longer in the past year). This important coverage provides medical care and replaces lost wages for staff injuries and shields you from most employee lawsuits.. Examples:
- A mechanic suffers burns from hot engine parts
- An employee injures their back lifting heavy tires
Based on actual Mylo data, worker's comp in Michigan typically costs between $88-$114 a month.
Mylo makes it easy to make a smart decision
Your amazing company deserves protection that keeps up with your business. Mylo has been innovating insurance for 10 years and provided 100,000 policies to 75,000+ small business owners. Because we don't sell our own insurance, we can give you an objective recommendation and find you the best value in Michigan – at no cost to you.
In minutes Mylo will:
- Recommend the right coverage for your Michigan auto repair shop
- Compare quotes from top-rated insurance carriers
- Find you the best combination of coverage and price
- Keep you feeling confident about growing your business!
FAQs: Michigan auto repair business insurance
What automotive repair business insurance is required in Michigan?
What are some typical costs of auto repair business insurance?
Based on actual Mylo data, a BUSINESS OWNER'S POLICY typically costs $187-$248 a month in Michigan. COMMERCIAL AUTO typically costs between $227-$313 a month in Michigan. WORKERS' COMP typically costs between $88-$114 a month in Michigan.
Mylo can give you an accurate estimate on these and other coverages you may need based for your specificshop.