Auto care shops are high-risk environments with heavy machinery, flammable liquids, and constant customer traffic. While insurance helps soften the blow, many disasters start with preventable mistakes. Here are five real-world missteps that often lead to major claims, lawsuits, and business interruptions:

1. Leaving Customer Vehicles Unattended with Keys Inside

It sounds simple. You pull a car in, leave the keys in the ignition while grabbing a tool, and the next thing you know, the vehicle's gone. Theft of customer vehicles is a surprisingly common loss, especially after hours.

Lesson: Always remove keys from vehicles and secure them in a lockbox. Install cameras and lighting around your lot to deter thieves.

2. Letting Unqualified Employees Operate Vehicles or Equipment

An employee without proper training takes a customer’s car for a test drive or uses a lift incorrectly. A crash or collapse occurs. Now you're facing a claim, property damage, or worse, an injury.

Lesson: Only allow licensed, trained employees to move customer vehicles or operate heavy equipment. Keep certifications up to date.

3. Improper Storage of Flammable Materials

Oil rags in a pile. Gasoline stored near an open flame. These small oversights have caused total losses due to fire. Auto shops are particularly vulnerable to fire hazards, and insurance only goes so far after a major blaze.

Lesson: Follow OSHA fire safety standards, store chemicals properly, and have working extinguishers and sprinklers tested regularly.

4. Slips, Trips, and Falls in Customer Areas

Oil spills, loose tools, or icy walkways. A customer walks in for a tune-up and walks out with a lawsuit. Liability claims from injuries can easily reach six figures.

Lesson: Keep floors clean and dry, secure cords or hoses, and clearly mark off-limits areas. During winter, salt sidewalks and post warnings.

5. Skipping the Final Safety Check After a Repair

An improperly tightened lug nut or missed brake issue can result in a vehicle malfunctioning on the road. If your work is traced back to the incident, your shop could face a negligence lawsuit.

Lesson: Make post-service safety checks standard for every job. A 5-minute inspection can prevent a 5-figure claim.

Final Word

Most auto shop insurance disasters don’t come from freak accidents. They come from everyday mistakes like missed safety checks, poor storage practices, and preventable theft. Training, awareness, and routine safety habits are your first line of defense. But when something does go wrong, the right insurance coverage can make all the difference between a quick recovery and a long-term setback.

That’s why it’s important to work with someone who understands the unique risks of your business. A local Pekin Insurance Agent can help you assess your operations, identify blind spots, and build a policy that fits the way your shop runs, not just a one-size-fits-all plan.

Protect your shop before the next disaster strikes. Click here to find an agent near you.