Auto repair shop insurance, from drop-off to the open road
From the moment a customer hands over the keys to the day your work rolls back onto the highway, your shop carries real risk. We build coverage around it: garagekeepers, garage liability, workers' comp and more.
What does your shop actually need?
Choose what applies to your shop. The four core coverages apply to every shop; the add-ons below depend on how you work.
Your operation
Select everything that applies.
Coverage that typically applies
6 coverages — a starting point for a conversation, not a quote.
- Garagekeepers LiabilityCustomer vehicles in your care, custody and control.
- Garage LiabilityPremises, operations and completed work.
- Shop PropertyBuilding, lifts, equipment and inventory.
- Business IncomeKeeps you afloat after a covered loss.
- Workers' CompensationRequired in Washington, and auto work carries real injury risk.
- Garage Auto / Test-Drive LiabilityCovers you when your team operates customer vehicles.
The coverages that fit a garage
What each coverage does, and the gap it closes for an auto shop.
Garagekeepers Liability
The core auto-shop coverage. Protects customers' vehicles while they're in your care, custody and control. Without it, a single damaged $75,000 vehicle could come out of your pocket.
- Fire damage to customer vehicles
- Theft from your lot or shop
- Vandalism and malicious mischief
- Collision while an employee is driving
- Weather damage (hail, wind, flood)
- Employee-negligence damage
Garage Liability
Combines general liability and auto liability for automotive businesses: injury and property damage from your premises, operations, and when operating customer vehicles. Standard general liability won't respond when your team drives a customer's car.
- Premises liability (customer injuries)
- Operations liability
- Products / completed operations
- Auto liability on customer vehicles
- Test-drive and road-test coverage
- Legal defense costs
Workers' Compensation
Required in Washington. Covers medical care and lost wages when employees are hurt, and automotive claims can be frequent and severe.
- Crush injuries from lifts and vehicles
- Burns from hot engines and exhaust
- Chemical exposure and fumes
- Back and lifting injuries
- Eye injuries
- Medical treatment and wage replacement
Shop Property
Protects your building, lifts, diagnostic and alignment equipment, tools and parts inventory, plus your income if a loss shuts you down. One frame machine or paint booth can top $50,000 to replace.
- Building and improvements
- Lifts and shop equipment
- Diagnostic and alignment equipment
- Shop-owned tools
- Parts and supplies inventory
- Business income protection
Tools & Equipment
Often $100,000 or more at stake. Covers shop-owned tools, diagnostic gear and specialty equipment against theft, damage and loss, on-site or in a service vehicle. Employee-owned tools may need to be scheduled separately.
- Hand and power tools
- Diagnostic computers and scanners
- Alignment and balancing equipment
- Welding and fabrication gear
- Theft from shop or vehicle
Equipment Breakdown
Covers mechanical and electrical failure of the equipment you depend on. Breakdown is excluded on most property forms; this closes the gap.
- Lift hydraulic failure
- Air compressor breakdown
- Alignment rack failure
- Paint-booth equipment
- Diagnostic system failure
Pollution Liability
Responds to environmental contamination: oil and fluid spills, refrigerant releases, solvent contamination and cleanup. Standard garage liability excludes pollution claims entirely.
- Oil and fluid spills
- Refrigerant releases
- Paint and solvent contamination
- Cleanup costs
- Regulatory defense
Cyber Liability
Protects against data breaches and system compromises, increasingly relevant as shops process cards and connect to vehicle systems. A breach can bring notification costs and fines a GL policy won't touch.
- Credit-card data breaches
- Customer information theft
- Ransomware attacks
- PCI compliance fines
- System restoration costs
Employment Practices (EPLI)
Covers claims by employees alleging discrimination, harassment, wrongful termination or wage violations. Auto shops face employment claims like any other employer.
- Discrimination claims
- Harassment allegations
- Wrongful termination
- Wage and hour disputes
- Retaliation claims
Umbrella / Excess
Adds liability limits above your garage and employers liability. One highway accident from completed work can exceed $1 million.
- Excess over garage liability
- Excess over employers liability
- $1M–$5M+ limits
- Completed-operations excess
- Catastrophic-claim protection
Garagekeepers: which form protects you?
The same coverage name can behave very differently. Here are the three ways garagekeepers is written.
Legal Liability (narrowest)
Pays only when your shop is legally liable for the damage, meaning you have to be at fault. If a customer's car is stolen or burns in a fire you didn't cause, this form may not respond, even though the customer still expects you to pay.
- Covers: employee-caused damage
- Does not cover: fire you didn't cause
- Does not cover: theft and vandalism
- Does not cover: weather damage
Direct Primary (best protection)
Pays for covered damage to a customer's vehicle regardless of fault, including theft, fire, vandalism and weather, and responds before the customer's own insurance. For most shops, the small extra premium is well worth it.
- Covers: employee-caused damage
- Covers: fire (any cause)
- Covers: theft and vandalism
- Covers: weather damage
Direct Excess (pays after the customer's policy)
Covers damage regardless of fault, but only after the customer's own auto insurance pays first. Less expensive than Direct Primary, but it can leave gaps when a customer is uninsured or underinsured.
- Covers: employee-caused damage
- Covers: fire (any cause)
- Covers: theft and vandalism
- Does not pay first / primary
Real claim scenarios and what responds
Illustrative examples only. Actual outcomes depend on your policy's terms, limits and the facts of each claim.
Customer's BMW stolen from the lot
A customer's $65,000 BMW is stolen from your lot overnight.
Illustrative example. Real outcomes depend on the facts and your policy terms.
Coverage for your operation
Filter or search to find your type of automotive business.
General repair shops
Full-service mechanical, electrical and diagnostic work.
Collision / body shops
Body repair, painting and collision restoration.
Quick lube / oil change
Fast-service oil and fluid work, high volume.
Tire & battery shops
Tire sales, mounting, balancing and batteries.
A/C & radiator shops
Cooling and climate-control specialists.
Transmission specialists
Transmission repair, rebuild and replacement.
Auto electric
Electrical diagnosis, starters, alternators and wiring.
Performance shops
Upgrades, tuning and high-value custom work.
Auto glass
Windshield and glass replacement, ADAS calibration.
Detailing services
Detailing, ceramic coating and paint protection.
Fleet service centers
Commercial and fleet vehicle maintenance.
EV service centers
EV repair, battery and high-voltage systems.
Completed operations exposure
When a vehicle leaves your shop, your liability goes with it. These failures generate the largest claims, and completed-operations coverage is built for them.
Brake failures
Improper repair leads to an accident.
Wheel-off incidents
Improper torque; the wheel separates.
Engine fires
A repair causes a vehicle fire.
Steering / suspension
Loss of control from faulty work.
Fuel system
Leaks causing fire or damage.
Cooling system
Engine damage from failures.
Electrical fires
Wiring work causes a fire.
Documentation
Repair records are essential for your defense.
Common coverage gaps and the fix
The exposures we most often see under-covered on auto shop policies.
Inadequate garagekeepers limits
Many shops carry $50,000–$100,000 limits while customers routinely drive $60,000–$100,000+ vehicles, so one loss can exceed the limit.
- The fix: carry limits that reflect the vehicles you handle. Most shops want $300,000–$500,000; high-end shops often need $1M+.
Legal-liability-only garagekeepers
Legal-liability garagekeepers pays only when you're at fault, so theft, fire or vandalism to a customer's car may not be covered.
- The fix: move to Direct Primary, which pays regardless of fault. The extra premium is small next to the protection.
No completed-operations coverage
Some policies limit or exclude completed operations, leaving you exposed when a repair fails after the car leaves.
- The fix: verify your garage liability includes products/completed operations at limits matching your overall liability.
No coverage for employee tools
Technicians often bring $20,000–$50,000+ of their own tools; standard property may not cover them if stolen or damaged.
- The fix: add employee-tools coverage or require techs to insure their own, and put the arrangement in writing.
No pollution coverage
Oil, antifreeze, refrigerant and solvents create environmental liability that standard policies exclude.
- The fix: add pollution liability, keep spill-containment supplies on hand and follow proper waste-disposal procedures.
Loaner / courtesy-car exposure
If you lend vehicles, standard garage policies may not cover them, and a loaner accident can come back to your shop.
- The fix: schedule loaners on your policy, verify the driver's license and insurance, and use signed responsibility agreements.
A broker who knows garages
Automotive experience
We understand the risks, the coverage nuances and what a shop actually needs.
Garage-focused markets
We place coverage with carriers built for automotive businesses rather than generic business owner's policies that miss key exposures.
Coordinated programs
Garage liability, garagekeepers, property and workers' comp packaged so there are no gaps between them.
Market comparison
As a broker, we compare options across the market to find the right balance of protection and price.
Claims support
When a claim happens, we help you work through it with the carrier toward a fair outcome.
Since 1992
We've insured Pacific Northwest businesses for more than three decades, including many automotive service shops.
Get your auto repair shop insurance quote
Work with brokers who understand automotive service and build coverage that fits your bays. Or email info@firstunderwriters.com.
Coverage descriptions are general summaries for education. They are not legal, tax or coverage advice, a statement of coverage, an offer or a binder. Scenarios and dollar figures are illustrative examples, not representations about any business. Coverage, limits and eligibility are governed by the terms, conditions and exclusions of the policies issued and are subject to underwriting.