Do Mechanics Need Special Insurance?

by | Aug 12, 2021


If you own or want to work as a mechanic in an independent shop or a large dealership or gas station, then you likely know how critical adequate insurance coverage is for employers and employees. Mechanics are at a high risk of injury on the job site, which means they need extra protection in case they can no longer work because of an accident or illness. According to the Bureau of Labor Statistics, over 9,400 automotive mechanics and repairers were injured or became ill on the job in 2019.



Whether you are looking for a new employment opportunity in the field or you’re starting out as a mechanic for the first time, you need to be aware of what protections potential employers have in place. Find out what type of coverage mechanics need to protect themselves and their auto repair shop and focus on applying to reputable locations that offer these protections and benefits to staff members. 




What Kinds of Repair Shop Insurance Do I Need?


Mechanics work to keep a customer’s vehicle in shape by taking care of everything from transmission repairs, tire service, brake service, and oil changes. They may need different coverages that can help pay for damages to vehicles or their businesses if needed.



Specialized Insurance for Auto Mechanics and Automotive Repair Services


Before you begin searching for work on a site like JobsFuel, you need to understand the mechanic’s insurance policies that a reputable employer in this industry should possess to keep workers safe. The following are the types of insurance you might need depending on your specialty and the services that you offer:


  • Repair shop insurance
  • Body shop insurance
  • Radiator services insurance
  • Transmission shop insurance
  • Tow truck insurance
  • Muffler shop insurance



General Liability Insurance


General liability insurance should be a priority for any car repair shop, as it covers any accidents that may occur. This liability coverage protects you from lawsuits involving personal injury and property damage claims by third parties.




Garage Liability Insurance


Garage liability insurance protects garage owners and repair shops against lawsuits that may cause damage to the company, such as customer burns or slips from faulty workmanship. To protect against these risks in legal costs alone, your garage insurance policy must provide enough coverage at all times.



Garage Keepers Insurance


Even if you have garage liability insurance, you still need coverage against any damages to your customers’ vehicles while they are in the shop. Garage keepers’ insurance covers you if a customer’s vehicle is damaged while in your care.



You can choose limited coverage, which only pays the damages you are legally responsible for, or full protection, which pays for all damages regardless of legal liability.



Business Auto Insurance


You or your employees may have to test drive a customer’s vehicle to ensure it’s in good working order. Having a commercial auto insurance policy covers you and your employees in case accidents occur involving vehicles belonging to the company, the customer, or the employee’s personal vehicle while on the job. Personal injuries and property damage are covered under commercial vehicle insurance.



Business Interruption Insurance


Despite a disaster, you still have to pay your rent or mortgage, bills, and workers. Business interruption insurance covers your business in the event a fire, earthquake, storm, or other natural disaster disrupts your business.



Loss of income and relocation expenses to a temporary site are covered in your insurance cost, allowing your business to remain afloat. A business interruption insurance policy is essential for keeping your business running during a crisis.



Business Property Insurance


Business property insurance covers your business against theft, vandalism, fires, and other incidents that cause property damage. It also protects the equipment you use in running your office and lost inventory caused by these events. Your exterior signs and fences are all part of this insurance policy.



Property and Equipment Insurance


Power surges happen all the time, but in your repair shop, they could be devastating. You should consider adding property and equipment insurance coverage, so if anything happens to the equipment in your auto repair shop, like power strips or chargers, you’ll have some protection.



Workers’ Compensation 


As an employer of mechanics, you’ll need to pay into workers’ compensation insurance. In case of workplace injury or illness, workers’ compensation insurance will provide your workers with medical, rehabilitation, and disability benefits. If a worker is killed on the job, the family of the worker may also receive workers’ compensation death benefits.



Business Owners Policy (BOP)


A BOP, or business owner’s policy, is specifically for small businesses. A low-cost insurance package provides property and liability protection for your repair shop if something like an accident or natural disaster causes damage. 



Find the Right Insurance Coverages as a Mechanic


Mechanics need different professional liability insurances from accountants or dentists. There are many types of coverage and insurance quotes available. Before accepting work in a garage or auto repair shop, make sure you ask your employer about what kinds of coverage they have to protect you while you’re on the job. General liability insurance, workers’ compensation, and business auto insurance are some of the top protections a reputable employer should have in place when hiring mechanics for their business. 



If you are an experienced mechanic looking for new opportunities in your area, consider checking out available listings at today.