Breaking Down Your Shop Insurance Quote
Insurance quotes can be overwhelming, packed with industry jargon and complex coverages. That’s why it’s essential to have an agent who specializes in garage liability insurance and can explain everything in plain terms. Let’s break down the core coverages that make up a standard shop insurance quote so you know exactly what you’re getting.
1️⃣ General Liability Insurance: Your First Line of Defense
We often hear shop owners say, “I’m covered—I have a million-dollar policy.” However, what they’re referring to is usually their per occurrence general liability limit.
✅ Protects against bodily injury and property damage claims
✅ Industry standard: $1M per occurrence, $2M aggregate
🚫 Does NOT cover: Customer vehicles or auto accidents
This is typically required by landlords and helps protect your business from lawsuits related to slips, falls, and other liability claims.
2️⃣ Auto Liability: Essential for Test Drives & Loaner Vehicles
If you test drive customer vehicles or provide loaners, you need auto liability coverage.
✔ Non-Owned Auto Liability – Covers employees test-driving customer vehicles
✔ Hired Auto Liability – Covers rented or leased vehicles used for business
✔ Shop Trucks & Loaner Cars – Must be specifically scheduled on the policy
A $1M combined single limit is recommended to ensure full protection.
3️⃣ Garage Keepers Insurance: Protecting Customer Vehicles in Your Shop
Your customers trust you with their vehicles—but are they covered while in your care?
✅ Covers damage to customer vehicles on your property
✅ Two options:
- Direct Primary Coverage – Pays for damage regardless of fault
- Legal Liability Coverage – Pays only if you’re legally responsible
Which one is right for you?
- If a customer wouldn’t expect a grocery store to pay for hail damage in their parking lot, legal liability may be enough.
- If you want broader protection to maintain customer satisfaction, direct primary is the better choice.
🚨 Specialty Vehicles? If you work on exotics or classics, get a policy with agreed value coverage to avoid payout issues.
4️⃣ Business Personal Property: Covering Your Tools & Equipment
Most shop owners don’t realize that not everything is covered the same way.
✔ Covers tools, equipment, office furniture, and fixtures
✔ Building vs. Business Personal Property:
- Fixed to the foundation? Covered under the building limit (lifts, dynos, tire machines).
- Movable? Covered under business personal property.
Even if you rent your shop, your equipment still needs protection—don’t overlook this coverage!
Get the Right Insurance for Your Shop
We work with multiple carriers and tailor coverage to fit your shop’s unique needs. Our agents take the time to walk your shop, assess risks, and help determine the best coverage.
🚛 Why settle for an agent who doesn’t specialize in auto repair insurance? Let us help you get the right coverage at the best rate.
📞 Contact us today for a free shop insurance quote! 🔧🔩
