Auto Repair Shop Insurance Cost: What You Need to Know

Running an auto repair shop is no small task. Not only do you have to keep up with the daily demands of running the business, but you also need to make sure you have the necessary insurance to protect your business. Insurance can be expensive, and it’s important to understand what types of coverage you need and the average cost of auto repair shop insurance.

Types of Coverage

The type of coverage you need will depend on the services you offer and the size of your business. Generally, most businesses will need general liability, property, and business auto insurance. Other types of coverage you may need include workers’ compensation, professional liability, and umbrella liability.

General Liability

General liability insurance is the most basic and important type of coverage for an auto repair shop. This coverage will provide protection in the event that a customer or visitor is injured on your property. It will also cover property damage or bodily injury caused by your employees. This coverage also provides protection against slander, libel, and copyright infringement. The average cost of general liability insurance for an auto repair shop is $500 to $2,500 annually.

Property Insurance

Property insurance covers the physical assets of your auto repair shop. This includes the building, equipment, and inventory. Property insurance will provide protection against damages caused by fire, theft, vandalism, and natural disasters. The cost of property insurance will depend on the value of your assets, but the average cost is $500 to $1,000 annually.

Business Auto Insurance

Business auto insurance is necessary if you own or lease vehicles for your auto repair shop. This coverage will provide protection against damages caused by an accident, theft, or vandalism. It will also cover any medical bills or legal fees incurred due to the accident. The cost of business auto insurance will vary depending on the value of the vehicles and the coverage you choose. The average cost is $1,000 to $2,500 annually.

Workers' Compensation

Workers' compensation insurance is required in most states if you have employees. This coverage will provide protection in the event an employee is injured or becomes ill due to their job. It will cover medical expenses, lost wages, and death benefits. The cost of workers’ compensation insurance will vary depending on the number of employees and the state you are in, but the average cost is $3,000 to $5,000 annually.

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, is important for auto repair shops. This coverage will provide protection in the event that an error or omission made by your business results in financial loss for a customer. The cost of professional liability insurance will depend on the size of your business and the services you offer, but the average cost is $500 to $1,000 annually.

Umbrella Liability Insurance

Umbrella liability insurance is an additional layer of protection for your auto repair shop. This coverage will provide protection in the event of a lawsuit or claim that exceeds the limits of your other insurance policies. The cost of umbrella liability insurance will vary depending on the amount of coverage you choose, but the average cost is $200 to $500 annually.

Auto repair shop insurance is an important part of running a successful business. Understanding the types of coverage you need and the average cost of auto repair shop insurance can help you make the best decision when it comes to protecting your business.