Auto Repair Shop Insurance for Mechanics

Who is auto repair shop insurance for?

Any business that services, repairs or maintains vehicles for a fee can benefit from auto repair shop insurance. Coverage can be tailored to fit a wide range of business types.
   

Independent mechanics

Solo mechanics who work out of a leased garage or occasionally provide off-site services need coverage for their tools, liability exposures and the vehicles in their care. A single slip-and-fall or damaged customer car can result in out-of-pocket costs that threaten a one-person operation.

Auto repair shops and garages

Multi-technician shops face compounding risks – more employees means greater workers compensation exposure, and more customer vehicles on the lot means higher liability potential. Shops also need protection for their buildings, equipment and business income if a covered event forces them to close temporarily.

Products & solutions

What insurance coverages do auto repair shops and mechanics need?
   

Auto repair shops and mechanics typically need a combination of liability, property, income and specialized garage insurance. A business owner’s policy (BOP) bundles the most essential coverages into a single package.

Foundational insurance coverage
   

Bundling coverages in a BOP is typically more cost-effective than buying individual policies separately and simplifies managing them by having them with one carrier. A Travelers BOP includes:
   

• General liability insurance – Covers third-party claims for bodily injury or property damage arising from the day-to-day operations of an automotive business. For auto repair businesses, this means coverage when a customer slips in the waiting area, a visitor trips over equipment or a third party suffers property damage related to business operations.
• Property insurance – Covers the shop’s building, equipment, tools and inventory against losses from fire, theft or certain natural disasters. For businesses that depend on specialized tools and diagnostic equipment, property insurance helps cover the physical assets the business needs to operate. The Garage Amendatory Provisions endorsement provides garage-specific property enhancements, including employee tools and equipment coverage and additional coverage for motor vehicle damage to leased buildings.

• Business income insurance – Helps replace lost revenue and covers ongoing expenses if a covered event forces a temporary closure. For an auto repair shop that depends on daily service appointments, even a brief closure from fire, storm damage or a power outage can create significant financial strain.
• Garagekeepers liability –  A foundational coverage for any shop that services or stores customers’ vehicles. It covers physical damage to a customer’s car while it’s in the shop’s care, custody or control – for example, damage from fire, vandalism or an employee error during an overnight stay. A standard BOP does not cover this exposure because the vehicle belongs to the customer, not the business. Most auto repair shops, body shops and detailers carry garagekeepers liability alongside their BOP for this reason.

Optional coverages tailored for auto body and repair shops
   

• Artisans tools and equipment coverage – An optional inland marine coverage added on to the BOP, covers mechanics’ tools and equipment from covered losses.
• Broad form products coverage for garage operations – An optional endorsement added to the BOP general liability policy. For shops that install or sell parts, this coverage protects against the costs of liability claims arising from a defective product – an exposure that standard garage liability may not fully address.

• Power Pac Premier^SM – Expands property insurance protection with more than 40 enhanced coverages and limits, including computer fraud protection, accounts receivable coverage, debris removal and utility services coverage – useful for shops that rely on diagnostic technology or carry significant receivables.
• Xtend Endorsement^® coverage – Strengthens general liability insurance protection with 12 enhancements designed for businesses that work with partners and vendors, including blanket additional insureds, broader coverage for unnamed subsidiaries and a blanket waiver of subrogation.

What add-on protection do auto repair shops and mechanics need?
   

Many shops need commercial auto, cyber liability, employment practices liability umbrella insurance and more. The right add-ons depend on the specifics of how the business operates. A mobile mechanic has different exposures than a multi-bay shop, and a business with a large staff or customer vehicles stored overnight faces risks that foundational coverages alone may not fully address.
   

• Commercial auto insurance – Covers business-owned vehicles, including those used to pick up or deliver customer cars, transport equipment or travel between locations.
• Cyber liability insurance – Covers cyber extortion, business interruption, data restoration and cybercrime. For auto repair businesses that store customer payment data and rely on diagnostic and scheduling software, cyber coverage helps manage the costs of a breach or attack, including forensic investigation, notification and data recovery.
• Workers compensation insurance – Required by law in most states for businesses with employees. Workers compensation covers medical expenses and lost wages for employees injured on the job. For auto repair shops, where technicians work with heavy equipment and hazardous materials, this coverage addresses a direct and common workplace risk.

• Employment practices liability (EPL) – Covers employment-related claims such as wrongful termination, discrimination and harassment. Coverage includes sublimits for immigration and workplace expense reimbursement, plus access to risk management resources.
• Umbrella insurance – Provides an additional layer of liability protection above the limits of underlying policies, helping address high-cost claims that exceed primary coverage limits.