Helping service the vehicles of others is a big job. And no matter your expertise and professionalism, things can happen. Garage liability and/or Garagekeepers insurance can help cover costs when a technician’s error is responsible for damage at your shop. Business property insurance can help with repair and replacement costs when buildings, equipment, or tools are damaged by covered events like accidents or fires. Business personal property insurance can help offset losses when they’re caused by robbery or other covered losses. When you come to Keslar Insurance for a quote, we make sure to discuss exactly what your business does and the coverages you may want to have in your coverage portfolio. We make sure to find you competitively priced policies with the most coverage so that you can focus on running your business.
What are the insurance policies we recommend for Auto Services & Repair Garages?
Business Owner’s Policy (BOP)
Worker’s Compensation
General Liability
Commercial Auto
Property Insurance
Employment Practices Liability (EPLI)
Commercial Umbrella
Cyber Liability
*In addition to these policies, we also recommend Garage Keepers coverage. To learn more about this type of coverage, give our agency a call today.
Auto Service Shops – Insurance FAQs
1. What insurance does an auto repair or service shop need?
You’ll likely need:
- Garage Liability
- Garagekeepers Coverage
- Commercial Property
- Workers’ Compensation
- Commercial Auto (if you pick up/deliver vehicles)
- Optional: Pollution Liability, Cyber Liability, Equipment Breakdown
2. What is Garagekeepers coverage?
It covers customers’ vehicles in your care—whether for repair, valet, or storage. If a fire, theft, or vandalism damages a customer’s car, this coverage pays.
3. Does General Liability cover damage to customer vehicles?
No. That requires Garagekeepers Legal Liability. General Liability only covers damage to third-party property and injuries.
4. What if a mechanic gets hurt on the job?
Workers’ Comp covers job-related injuries, including from lifts, tools, or chemicals. It’s required if you have employees.
5. What about test drives or road testing?
Any employee driving customer cars needs to be listed on your Garage Liability and potentially Commercial Auto policies.
6. Is Property Insurance necessary if we rent?
Yes. You need coverage for your tools, lifts, computers, parts inventory, and tenant improvements—even if the building isn’t yours.
7. What if a fire destroys our lifts or diagnostic tools?
Commercial Property or Equipment Breakdown coverage helps pay to repair or replace critical tools and get you back in business.
8. Do we need Cyber Liability if we don’t sell online?
If you store customer info, payment methods, or VINs digitally—you do. Cyber Liability helps with breach response and data protection.
9. Can we be held liable for pollution or fluid disposal?
Yes. Pollution Liability is important for spills, disposal issues, and runoff—especially in states with strict environmental rules.
10. Do we need product liability for parts we install?
If a part you install causes damage or injury, you could be named in a lawsuit. Product–Completed Operations coverage can protect you.
11. How do I prove I’m insured to fleet or dealership clients?
You can provide a Certificate of Insurance (COI) showing your limits and specific coverages. We provide these fast when you need them.
12. How can we reduce our insurance premiums?
Keep a clean claims history, maintain proper safety procedures, and work with an agent who understands auto services.
