Duncan & Stoker
Commercial Insurance Solutions Inc.

What types of insurance do I need for my

automotive repair shop?

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Automotive repair shops typically need general liability insurance for customer injuries or property damage, garage liability for vehicle-related incidents, workers’ compensation for employee injuries, and commercial property insurance for the building and equipment. Additional policies like business interruption or cyber insurance may also be necessary.

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What does garage liability insurance cover?

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Garage liability insurance covers damages or injuries caused by vehicles in your care, custody, or control (e.g., accidents during test drives or damage to a customer’s car). It combines general liability with vehicle-specific coverage but excludes employee injuries or your own property.

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Is workers’ compensation insurance

required for my staff?

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Yes, most states require workers’ compensation insurance for employees, even part-time, to cover workplace injuries (e.g., from tools or heavy lifting). Non-compliance can lead to fines, lawsuits, or business closure, so check state-specific regulations.​

Does my insurance cover customer

vehicles in my shop?

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Customer vehicles are not covered by standard property or general liability insurance. Garagekeepers insurance is needed to cover damage to or theft of customer vehicles while in your care (e.g., during repairs or storage).

Do I need business interruption insurance for my repair shop?

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Business interruption insurance covers lost income and ongoing expenses (e.g., rent, payroll) if your shop closes temporarily due to a covered event like a fire. It’s recommended to maintain financial stability during unexpected closures.

How much does insurance for an

automotive repair shop cost?​​

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Premiums vary, with general liability costing $1,000–$3,000 annually and garage liability ranging from $2,000–$10,000, depending on shop size, location, services, and number of employees. Comprehensive coverage may total $5,000–$15,000 per year for small to mid-sized shops.

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Does general liability insurance cover

customer injuries in my shop?

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1. Yes, general liability covers customer injuries (e.g., slips or falls in the shop) and third-party property damage unrelated to vehicles. It also covers legal defense costs for related lawsuits but does not cover vehicle-related claims or employee injuries.​​​​​

​What does commercial property insurance cover

for my repair shop?

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Commercial property insurance covers damage to your building, tools, and equipment from perils like fire, theft, or vandalism. It excludes floods, earthquakes, or customer vehicles, which require separate policies or endorsements.

What is a certificate of insurance, and

why is it needed?

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1. A certificate of insurance proves your shop has active coverage, detailing policy types and limits. Customers, landlords, or lenders may request it to verify you’re insured against risks. Your insurer can provide this document.

Do I need cyber insurance for my

automotive repair shop?

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1. If you use digital systems for customer data, invoicing, or online bookings, cyber insurance is advisable to cover losses from data breaches, hacking, or ransomware. This is increasingly relevant as shops adopt digital tools.​