Running an auto care services shop means keeping your doors open to opportunity—and ready for anything that rolls in. Whether it’s an unexpected building loss, a fender-bender in the lot, or the mysterious disappearance of that one 10mm socket (seriously, where do they all go?), you’ve got to be prepared. Opening your bay doors each morning comes with risk—but the right insurance coverage helps ensure that what comes through them never catches you off guard. With solid protection in place, your shop stays secure, your team stays focused, and your tools (well, most of them) stay right where they belong.

Here are several key insurance coverages that every auto care shop should consider:

1.) Key Person Insurance

Every shop has that one person—the lead tech with decades of experience, the manager who knows every customer by name, or the owner who keeps the whole operation humming. What happens if they’re suddenly unable to work due to illness or injury? Key person insurance helps protect your business from the financial impact of losing a critical team member. It can provide funds to hire temporary help, cover lost income, or give you time to adjust without bringing operations to a halt. Think of it as a backup plan for the people who keep your shop running as smoothly as your best-aligned axle. 

Life Insurance can also be a creative, effective way of creating those golden handcuffs to help incentivize an employee to stay. It is worth looking into with an local independent agent.

2.) Garage Liability Insurance

Garage liability coverage is the foundation for protecting your business from liability for bodily injury and property damage. Say a customer trips over an air hose in your bay and breaks their wrist—garage liability helps cover their medical bills and protects you from lawsuits. Endorsements to your garage liability coverage are also needed for bodily injury or property damage that may occur incidental to test drives or parking of customers' autos.

3.) Garagekeepers ALS

When a customer leaves their vehicle in your care, you may be legally responsible for it. Garagekeepers Actual Loss Sustained coverage means you're covered for the actual value of the loss (minus the deductible) without having to worry about a limit if a customer's car is damaged. This coverage steps in to cover the actual cost to repair or replace the customer's vehicle. It is flexible, responsive protection that ensures your customers and your reputation are taken care of. 

4.) Commercial Property Insurance

Your tools, diagnostic machines, lifts, and even the building itself represent a major investment. Commercial property insurance protects against damage from fire, storms, or theft. Just like that missing 10mm socket—except in this case, if your entire tool chest goes missing, this coverage actually helps you replace it.

5.) Employee Tools Coverage

In many shops, technicians bring their own specialized tools—tools they’ve collected over years and rely on every day. Employee tools coverage helps protect those personal tools from theft, fire, and other damage—even offsite. Whether it’s a digital torque wrench or an entire Snap-on set, this coverage ensures that your techs aren’t left without the gear they need—and that your shop can keep running smoothly if the unexpected happens.

6.) Mechanics Errors & Omissions (E&O) Insurance

This coverage provides additional liability protection for a defective product you sold or work you completed during your garage operations, after the vehicle has been returned to the customer.

7.) Business Interruption Insurance

If a fire shuts down your shop for two weeks, you’re not just out the cost of repairs—you’re also losing income. Business interruption coverage helps replace that lost income and can even cover temporary relocation expenses so you can keep servicing customers while your shop gets back on track.

8.) Workers’ Compensation

Auto repair work has risks. If one of your team members suffers an injury from repairing a transmission or slipping on an oil spill, workers' compensation helps cover medical bills and lost wages. 

9.) Data Compromise Coverage

Today's auto shops rely on digital technology. From scheduling appointments to processing payments, customer data is constantly moving through your systems. If that data is stolen, exposed, or accidentally leaked, data compromise coverage helps you respond quickly and responsibly. It covers the cost of notifying affected customers, providing credit monitoring, managing reputational damage, and providing defense and settlement costs in the event that affected customers sue. In a world where cyber threats can sneak in just as easily as a slow oil leak, this coverage keeps your business protected behind the scenes.

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Running an auto shop means managing more than just engines—it means protecting your livelihood. And while no policy can help you find your missing socket (have you checked the engine bay again?), the right insurance coverages make sure you're not left scrambling when real losses happen. It’s peace of mind that lets you focus on what you do best: keeping your customers rolling and your bay doors open for business—day in and day out.

To learn more about Pekin Insurance’s unique product made specifically for Auto Care Service shops, click here.

This blog is intended for informational purposes only and does not constitute a guarantee or imply the availability of coverage. Insurance products, coverages, and discounts may vary by state and are subject to terms, conditions, and underwriting guidelines. For specific details and personalized guidance, please contact a licensed insurance agent.