What is auto repair shop insurance?
Auto repair shop insurance is a specialized product designed for businesses operating in the automotive repair industry. It is available in a package or bundle of coverages that protect mechanics and auto repair professionals from risks related to automotive business operations. It's an umbrella policy covering everything from daily operations to employees and liability threats.
Depending on the insurer, this insurance may be known as:
- Garage liability insurance
- Auto repair shop insurance
- Mechanic insurance
- Automotive business insurance
All of the above refer to the same type of insurance coverage.
Types of companies that need garage liability insurance
![Three cars in auto repair garage with mechanics working]()
Garage liability insurance is designed for all kinds of automotive repair and maintenance companies. Here’s a list of companies that this insurance applies to:
- Mechanics
- Automotive repair shops
- Auto detailing
- Auto service technicians
- Collision body shops
- Car washes
- Mobile mechanics
- Tire dealers and repair
- Emission and inspection centres
- Glass and windshield repair facilities
- Lube, oil, and filter shops
- Muffler repair shops
- Auto painters
- New and used car dealerships
- Service stations
- Transmission repair facilities
- Vehicle wrapping and tint companies
- Parking garages and valet services
Why do you need mechanic and auto repair shop insurance?
Auto garages are inherently exposed to many risks. Garage insurance coverage protects your business against these risks. Without coverage, you would be on the hook for any damage to your garage and equipment and potentially face lawsuits if someone was injured on your property or a customer's vehicle was damaged.
Here are some of the potential threats to your auto repair shop:
- Theft (cars, tools, equipment, customer contents)
- Fire
- Equipment breakdown (lifts, jacks, assessment tools, sensors)
- Vandalism
- Injury of employees
- Third-party injuries
- Damage to a customer's car - The customer's car insurance is not responsible for the damage you cause.
- Polluting events - for example, oil or fuel leaks
- Damage to the structure of your shop (garage doors, roof, windows) from weather events
- Much more
What does auto repair garage insurance cover?
![Car service employees talk while standing in a garage.]()
Auto repair insurance includes a wide range of Ontario business insurance coverage. You can personalize your policy to include the specific types of protection that your shop needs. Here is what mechanic insurance covers:
- Garage liability insurance: This is a specialized type of commercial general liability insurance. It protects you in the case of third-party property damage or bodily injury. For example, if you damage a customer's car, a customer slips while in your shop, or thieves steal something from a customer's car while in your care. These situations are covered.
- Garage keepers liability insurance: This coverage protects your customers’ vehicles at your shop and when servicing them. It covers damage or loss from fire, theft, vandalism, or severe weather if your shop is liable for damages.
- Garage tool insurance: This will repair or replace your tools or the tools of others in your care if they are lost, stolen, or damaged. Speak with your insurer for a list of tools and equipment included in this coverage.
- Commercial auto insurance: Coverage for the vehicles you use to run your auto repair shop.
- Commercial property insurance: This protects the shop building and other structures on your property. You will need commercial tenant liability insurance if you lease the property.
- Business interruption insurance: A lot of things could happen that could interfere with your operations. Protect your financial well-being if you are forced to close your doors because of weather damage and other unforeseen events.
- Pollution liability insurance: This covers you if you cause pollution damage to your property or a third party. This includes clean-up costs and medical care for people who experience health issues.
- Leased, rented, borrowed equipment insurance: Get financial protection if you damage equipment when you lease, rent, or borrow equipment to do your work.
- Non-owned auto insurance: Non-owned auto liability covers employees who use their personal vehicles for work, such as picking up parts for the shop or driving customers. It covers damage to another vehicle or property and any third-party medical costs resulting from an accident.
- Equipment breakdown insurance: This covers the cost to fix or replace equipment that breaks down because of malfunction, power surges, and other unforeseen circumstances.
