Image of a car in an auto repair shop with mechanics representing auto shop insurance
Icons representing auto shop insurance

Service & Repair Shops Need Protection

Auto Shop Insurance

Auto shops face myriad risks in their daily operations, making auto shop insurance an essential safety net. Besides protecting your shop from financial losses, this insurance safeguards customers’ vehicles, ensuring trust and confidence in your services. Let’s take an in-depth look at the importance of insurance for auto service and repair shops and the different types available to safeguard your business.

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  • Mechanics
  • Collision Repair Shops
  • Automotive Painters
  • Auto Glass Repair
  • Independent Garages
  • Speciality Shops
  • Maintenance Shops
  • Oil Change Shops
  • Transmission Shops
  • Service Stations

Why is Auto Shop Insurance Crucial?

Insurance for auto repair or service businesses is not merely a legal obligation; it’s a fundamental risk management tool. Here’s why:

  • Protection Against Unforeseen Expenses: Auto shops are exposed to numerous risks, including theft, lawsuits, work-related accidents, and damage from natural disasters. A comprehensive insurance policy cushions your business against these unforeseen costs, preventing financial strain.
  • Customer Confidence: Customers entrust their valuable vehicles to your care. Having the right insurance coverage demonstrates your commitment to their property’s safety, fostering trust and confidence in your services.

Key Types of Auto Shop Insurance

Several insurance products cater to the specific needs of auto repair and service businesses. Here are the six most important types of auto shop insurance that your business should consider:

Workers Compensation Insurance

Working with heavy machinery and vehicles exposes your employees to potential risks of injury. Workers compensation insurance covers medical bills and lost wages for employees injured on the job. This insurance is a legal requirement in Mississippi and a crucial protection for your team.

Mississippi requires workers compensation insurance if you have five or more employees. Other states, like California, require workers comp even if you have only one employee. All states agree that even if you aren’t required to carry workers compensation insurance, you are required to pay for medical and disability expenses incurred by any “employees” who are injured while working for you. If there is disagreement on the issue, a determination is made by the Department of Labor after the injury has occurred.

Garage Keepers Insurance

Garage keepers insurance protects your business from costs incurred if a customer’s vehicle is damaged while in your care. Garage keepers coverage protects auto shops and dealers from liability when a customer’s vehicle is damaged while in their care, custody, or control. This could include fire, theft, vandalism, or collision damage while the vehicle is on your premises for repairs or servicing.

General Liability Insurance

General liability covers claims of third-party bodily injury or property damage. For instance, if a customer slips and falls in your shop, this insurance would cover their medical expenses and legal costs if they decide to sue.

Commercial Property Insurance

Commercial property insurance covers your business property, including buildings, furniture, equipment, and inventory, against common perils such as fire, theft, or natural disasters. This insurance is crucial to protect your investment in your business.

Business Interruption Insurance

Also known as business income insurance, this coverage compensates for lost income and operating expenses if your business is unable to operate due to a covered event, such as a fire or major equipment breakdown.

Commercial Auto Insurance

Commercial auto insurance covers any vehicles owned by your business. If your employees use company vehicles for parts pick-up, this coverage can protect your business from the financial impact of any accidents.

Cost of Auto Shop Insurance

The cost of auto shop insurance varies based on several factors:

  • Type of Coverage: Insurance costs will depend on the types and levels of coverage you choose.
  • Insurance Rates: Different insurers offer different rates. It’s always advisable to get multiple quotes to ensure you get the best coverage at the best price.
  • Claims History: If your business has a history of frequent claims, you can expect to pay higher premiums.
  • Total Assets Insured: The more assets your business has, the higher the insurance cost.
  • Risk Exposure: Businesses with higher risk factors, such as more employees or heavy machinery, typically have higher insurance premiums.

Keep in mind that we’ll work with you to gather all the vital info about your business, the equipment you own, and how you operate. We’ll walk you through steps to lower your risk and, therefore, your insurance premium.

Choosing the Right Business Insurance for Your Auto Shop

Each auto business is unique, with different insurance needs. We’ll help you assess your business’s specific risks and choose insurance coverages that offer the necessary protection.

Consider the following when choosing auto shop insurance:

  • The number of employees who could potentially be injured on the job
  • The value of the equipment and property that could be damaged or destroyed
  • The potential for customers’ vehicles to be damaged while in your care
  • The risk of a customer being injured at your premises

Investing in the right insurance policy is about more than just meeting legal requirements. It’s about protecting your business, employees, and customers, providing peace of mind to focus on what you do best – repairing and servicing vehicles.

Whether you’re starting a new auto shop or reassessing the insurance needs of your established business, take the time to understand the different coverages available to you. Feel free to consult with us to ensure you’re adequately protected.

Navigating the world of auto shop insurance can be complex, but it’s an essential task for any business owner. The right insurance coverage can protect your business from a wide range of potential risks, from property damage to employee injuries. By understanding your specific needs and working with a knowledgeable insurance agent, you can ensure that your auto shop is well-protected for years to come.

Icon representing general liability slip and fall insurance

General Liability Insurance

Commercial general liability insurance protects businesses from financial loss. General liability insurance provides coverage for you, your employees, and your business for common liability claims.

Icon representing workers compensation insurance

Workers Compensation Insurance

Workers compensation insurance provides coverage for medical expenses, rehabilitation costs, and lost wages for employees who are injured or become ill at work. This coverage is required by most states and can be the most expensive line of insurance for most employers.

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Commercial Umbrella Insurance

Worry less about an unexpected event by supplementing your existing coverage with commercial umbrella insurance also known as an excess liability policy. 

Our Insurance Specialists

We've been protecting Mississippi businesses for decades. Our agent specialists have tons of experience across all industries, and our agency is backed by Leavitt Group's national family of agencies and experts.

Whether you're considering starting a new business or an established company, we can help answer your questions and provide insurance quotes from multiple companies.

Our job is to make sure all of our business partners are properly protected with insurance coverages that fit their individual business needs. We're all about properly protecting businesses, not just providing the cheapest coverage and moving on. For us, it's about partnerships, not just selling policies.

Ashton Serpas

Insurance Agent
Ocean Springs, MS

Joe Joe Tharp

Insurance Agent
Jackson, MS

David Pyron

Insurance Agent
Jackson, MS

Ian Cross

Insurance Agent
Pascagoula, MS

Spencer Mitchener

Insurance Agent
Gulfport, MS

Cameron Farmer

Insurance Agent
Jackson, MS

Zac Little

Insurance Agent
Jackson, MS

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