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Every auto service business should start with Garage Liability, Garagekeepers Insurance, Workers’ Compensation, and Property Coverage. These four form your core protection. 

Garage Liability handles customer injuries or property damage, Garagekeepers covers vehicles in your care, Workers’ Comp protects your crew, and Property Insurance covers your building, tools, and inventory. Together, they shield you from the most common — and costly — shop-related risks.

💡 A bundled approach ensures you’re protected from the most common risks in cleaning — from slip-and-fall claims to broken property or theft accusations.

It’s one of the most misunderstood areas of mechanic coverage.

• Garage Liability covers injuries or damage caused by your operations — for example, if a technician forgets to tighten a bolt and the car crashes later.
  
  
• Garagekeepers Insurance, on the other hand, protects vehicles in your possession — for example, a fire, theft, or vandalism while cars are parked in your lot.
  
  Most shops need both; skipping either leaves a major coverage gap that could cost you six figures.
  

Yes — perhaps more than anyone. Independent mechanics often work without the financial buffer large shops have. 

One slip, fire, or stolen vehicle can erase months of income overnight. Insurance isn’t just protection — it’s survival capital. It keeps you working after accidents instead of closing your doors.

Costs vary depending on location, shop size, number of employees, and types of vehicles serviced.

• Small one-bay shops might pay $1,200–$3,000 annually.
  
  
• Medium repair facilities average $3,000–$8,000 per year.
  
  

Larger or high-performance shops can exceed $10,000+ annually.

💡  Bundling policies like a Business Owner’s Policy (BOP) or adding Umbrella Coverage can improve protection without major cost increases.

No. A landlord’s policy protects the building structure — not your equipment, employees, or customers’ vehicles. You’ll need your own property, liability, and Garagekeepers coverage to protect your business assets and operations.

💡 Each business has unique needs and coverage requests. Please reach out to get a custom quote for your operation.

If you direct their hours, provide tools, or control how they perform work, most states will treat them as employees for workers’ comp purposes — even if they’re labeled 1099. Without proper coverage, you risk state fines, lawsuits, and backdated premiums. The smarter path: carry Workers’ Compensation Insurance and stay compliant.

💡 Speak with an expert Today for exact premium expectations.

When a customer’s car is in your custody — whether it’s parked, being serviced, or test-driven — Garagekeepers coverage steps in for theft, fire, vandalism, weather, or collision damage.

There are three types:

• Legal Liability – covers only when you’re found negligent.
  
  
• Direct Excess – pays after the customer’s insurance.
  
  
• Direct Primary – covers damages no matter who’s at fault.
  
  Most professional shops choose Direct Primary for full peace of mind.

💡  Bonding builds client trust, while insurance keeps your business financially safe.

Standard property policies often don’t cover movable tools. That’s where Inland Marine (Tools & Equipment Insurance) comes in. It covers stolen or damaged equipment whether it’s in your shop, van, or job site. From Snap-On sets to OBD scanners — if it makes you money, it should be covered.

💡 If your primary equipment is stolen, this coverage can replace it quickly so you don’t lose jobs.

Yes — but only if your Garage Liability policy includes Products and Completed Operations coverage. This protects you if a customer claims your service caused later damage or injury. Without it, you’d be personally responsible for defense costs, settlements, or judgments.

Business Interruption Insurance covers your lost income, rent, and payroll while repairs are made. Many shop owners forget this protection until it’s too late. When downtime hits, this coverage ensures you can keep paying bills, retain staff, and reopen stronger instead of going under.

Absolutely. Every shop handles hazardous materials — oil, brake fluid, refrigerants, coolant, and cleaning solvents. A spill or leak that reaches a drain or soil can lead to major fines and cleanup costs. Pollution Liability Insurance covers environmental damage, cleanup, and third-party claims. It’s especially critical for shops near waterways or shared lots.

The key is alignment — matching coverage to how you actually operate.

• Bundle with a Business Owner’s Policy (BOP) for cost efficiency.
  
• Review classifications annually (many mechanics are overcharged under incorrect NAICS codes).
  
  

Work with an advisor who specializes in auto trades, not generic business insurance.

At WorkersInsurance.com, we analyze your workflow, labor structure, and vehicle exposure to trim costs — without sacrificing coverage where it matters most.

💡 With WorkersInsurance.com, most COIs are issued same-day — ensuring you never miss a contract because of paperwork delays.