Insurance for a auto repair shop: what you need + typical cost.

For your business: GL + Property bundle; add garagekeepers liability as a critical endorsement.

What it covers in general: A Business Owners Policy bundles General Liability and Commercial Property into a single, discounted policy. Often includes business interruption insurance as well.

Typical annual cost: $750–$1,800 (median $990) · Insureon, Small Business Insurance Cost

For your business: Covers bodily injury and property damage at your shop, including injuries to customers in your service area.

What it covers in general: Covers claims of bodily injury or property damage that your business causes to others — a customer slipping in your shop, or a contractor accidentally breaking a client's window.

Typical annual cost: $500–$1,560 (median $540) · Insureon, General Liability Cost

For your business: Not typically needed unless you provide specialized mechanical consulting or diagnostics services.

What it covers in general: Covers claims that your professional advice, service, or work product caused a financial loss to a client — also called Errors & Omissions (E&O) or malpractice insurance.

Typical annual cost: $700–$1,500 (median $876) · Insureon, Professional Liability Cost

For your business: Automotive work is physically hazardous. Required in virtually all states; common injuries include falls and equipment accidents.

What it covers in general: Pays for medical expenses and lost wages if an employee is injured or becomes ill because of their job. Also protects your business from employee lawsuits over workplace injuries.

Typical annual cost: $1,200–$8,000 (median $2,500) · Insureon, Workers Compensation Cost

For your business: Your tools, equipment, lifts, and parts inventory are significant assets that need property coverage.

What it covers in general: Covers your physical business assets — building (if you own it), equipment, inventory, and furniture — against fire, theft, vandalism, and certain weather events.

Typical annual cost: $970–$1,570 (median $1,270) · Insureon, Commercial Property Cost

For your business: Modern shops use management software and store customer payment and vehicle data.

What it covers in general: Covers losses from data breaches, ransomware attacks, and cyber fraud — including notification costs, credit monitoring for affected customers, legal fees, and regulatory fines.

Typical annual cost: $1,440–$2,160 (median $1,800) · Insureon, Cyber Liability Cost

For your business: If you drive customer vehicles for road tests or move them on public roads, you need garagekeepers/dealer plates AND commercial auto.

What it covers in general: Covers vehicles used for business purposes — work trucks, vans, cars driven to client sites — against accidents, liability, and damage. Personal auto policies specifically exclude commercial use.

Typical annual cost: $1,760–$2,940 (median $2,350) · Insureon, Commercial Auto Cost

For your business: A major incident involving a customer vehicle or on-premises injury could exceed standard GL limits.

What it covers in general: Adds an extra layer of liability coverage above your GL, Professional Liability, and/or Auto limits. Pays claims that exceed your primary policy limits.

Typical annual cost: $750–$1,500 (median $1,030) · Insureon, Umbrella Liability Cost

What's the difference between garagekeepers liability and direct primary?

Garagekeepers liability only pays if you're legally at fault for the customer's vehicle damage (e.g. you caused the fire, you damaged the car during repair). Garagekeepers direct primary pays regardless of fault — even if a tornado destroys the cars in your lot. Direct primary is more expensive but the only real coverage for shops in disaster-prone areas.

Do I need separate coverage for the lifts and other heavy equipment?

Lifts and equipment are typically covered under your Property policy as 'business personal property.' But for high-value items (alignment racks, tire-mount machines), some carriers prefer they be scheduled separately so replacement-cost coverage applies. Worth asking your agent to schedule anything over $10K.

If a customer's brake job fails and they crash, am I liable?

Yes — that's a product/completed-operations claim under your GL. Defense and judgment costs are covered up to your limit. Routine quality-control documentation (inspection sheets, torque records, customer signatures on completed work) significantly reduces both claim frequency and the size of judgments because it shifts the burden of proof.