Why Your Auto Shop Needs Insurance

Automobile repair shops are a one-of-a-kind industry. They provide a comprehensive range of mechanical services, including engine maintenance and tune-ups for automobiles of all makes and models.

A single mishap in the car shop can result in a lawsuit, jeopardizing the company’s financial health. As a result, having a correct and sufficient garage insurance program in place for an auto repair business is critical.

Here’s what you need to know as an auto technician to make sure you’re insured.

What Types of Insurance Does Your Shop Need

Every vehicle repair shop, regardless of specialty, requires general liability, errors and omissions, and commercial property insurance.

A garage liability insurance policy, like standard business liability insurance, protects a car repair company from litigation and medical costs that may emerge as a result of someone being injured on their property.

Workers’ compensation insurance is required if you have employees, and cyber liability insurance is required if you hold customer information.

What Businesses Can Use Garage Insurance?

Garage insurance programs are required by most businesses that have a physical site such as a garage, parking lot, or storage space where automobiles are repaired or stored.

Businesses that fit this model include:

  • Body shops
  • Impound or tow lots
  • Repair shops
  • Transmission shops
  • Muffler shops
  • Tire and battery repair places
  • Dealerships

Spending some time looking at the different garage insurance programs can save you a lot of heartache in the future.