Other People’s Property, Your Responsibility

Auto repair shops operate in a unique risk environment. Every day, customers entrust you with valuable vehicles. Your technicians operate those vehicles. Your facility stores them. And if something goes wrong—fire, theft, damage during repair—you’re responsible.

The insurance needs for auto service businesses go beyond standard business coverage. Understanding these specialized requirements protects both your business and your customers’ property.

Garage Liability: Your Core Coverage

Garage liability insurance combines general liability and auto liability for businesses that work on vehicles. It covers bodily injury and property damage arising from your operations, including test drives, moving customer vehicles, and accidents involving your service vehicles.

Standard general liability and commercial auto policies don’t work well for garages because the line between “premises operations” and “auto operations” is constantly blurred. Garage liability addresses this reality.

Garagekeepers Coverage: Protecting Customer Vehicles

Garagekeepers insurance covers damage to customer vehicles while in your care, custody, and control. Fire, theft, collision, and vandalism while vehicles are in your shop—this coverage responds when customer vehicles are damaged by something other than your work on them.

This coverage is often written on a “legal liability” basis (covering only what you’re legally obligated to pay) or “direct coverage” basis (paying regardless of fault). Direct coverage costs more but provides broader protection.

Products and Completed Operations

When repair work causes problems after the customer drives away—brakes fail, a repair comes undone—completed operations coverage responds. This exposure extends long after vehicles leave your shop.

Parts you install can also create product liability exposure if they fail and cause injuries or damage. Your coverage should address both scenarios.

Workers’ Compensation

Auto repair involves physical hazards: heavy lifting, chemical exposure, working under vehicles, power tools. Injuries are common, and workers’ compensation is essential for protecting your employees and your business.

Property Coverage

Your shop contains expensive equipment: lifts, diagnostic tools, specialty equipment. Your building (if owned) needs coverage. And your inventory of parts and supplies represents significant value. Property insurance protects these business assets.

Pollution Liability

Oil, antifreeze, solvents, and other materials create pollution exposure. Standard policies exclude pollution claims. If your operations could contaminate soil or groundwater, specialized pollution coverage deserves consideration.