Auto Repair Shop Insurance is a specialized form of coverage tailored to businesses in the automotive industry. Additional garage operations such as body shops, car dealerships, and service stations are also applicable. This type of insurance is essential for protecting your business from the unique risks associated with running a garage, including liability for customer vehicles, property damage, and employee and customer safety. At Ferrari & Associates, we understand the complexities of garage operations insurance and offer customized auto repair shop insurance plans to meet the specific needs of automotive businesses not just in Toronto and the Greater Toronto Area (GTA), but across Canada as well.

Why Your Business Needs Auto Repair Shop Insurance

Operating a repair shop or garage involves multiple risks. Risks include accidents that could damage customer vehicles to potential liability if a customer or employee is injured on your premises. Garage operations insurance provides comprehensive protection, ensuring that your business can operate smoothly and without the worry of financial losses from unforeseen incidents.

Key Components of Auto Repair Shop Insurance

1. Garage Liability Insurance:
   • Garage Liability Insurance is an essential insurance component that covers liability for accidents or damages that occur during your business operations. For example, if a customer slips and falls in your garage or if a mechanic accidentally damages a customer’s vehicle, garage liability insurance would cover the resulting costs. Without garage liability insurance coverage, your business could face substantial legal and medical expenses that could severely impact your finances.
2. Garage Keepers Insurance:
   • Garage keepers insurance is designed to cover the vehicles in your care, custody, or control. This means if a customer’s car is damaged while in your possession—whether from fire, theft, vandalism, or collision—this insurance will cover the repair or replacement costs. Protecting customer vehicles is critical to maintaining trust and reputation in the automotive industry. Garage keepers insurance coverage ensures that your clients’ vehicles are protected, even when unexpected events occur.
3. Property and Physical Damage Coverage:
   • This coverage protects your business property, including your building, equipment, tools, and inventory, against risks like fire, theft, vandalism, and natural disasters. It also covers physical damage to vehicles owned by your business like tow trucks, mobile repair vans and more. Property insurance recognizes that your garage and its contents are valuable assets. This coverage ensures that your business can recover quickly from a damaging event, minimizing downtime and financial loss.

Auto Repair Shop Insurance Business Use Cases

Auto Repair Shop Insurance

An auto repair shop in downtown Toronto specializes in luxury vehicles. One day, a customer’s car is damaged while in the shop’s care due to a fire that broke out in the garage. The shop’s garage keepers insurance covers the repair costs for the customer’s vehicle. Having the right vehicle damage protection allows the business to maintain its reputation and avoid a costly out-of-pocket expense.

Car Dealership Insurance

A car dealership in Vancouver has a large inventory of vehicles on its lot. During a severe thunderstorm, several vehicles are damaged by hail stones. The dealership’s garage operations insurance, which includes property and physical damage coverage, pays for the repairs, ensuring the dealership can continue its operations without significant financial loss.

Service Station Insurance

A service station in Edmonton offers both fuel and vehicle maintenance services. One of the employees accidentally spills oil on the garage floor, and a customer slips and falls, resulting in serious injury. The station’s garage liability insurance covers the customer’s medical expenses and any legal fees, protecting the business from a potential lawsuit.

Auto Repair Shop Insurance and garage operations insurance are the same. Insurance is more than just a safety net—it’s an essential tool for protecting your automotive business from the unique risks it faces daily. Whether you run a small auto repair shop, a large car dealership, or a service station, Ferrari & Associates offers tailored insurance solutions that provide comprehensive coverage for your specific business.  We even work with hybrid automotive businesses that offer multiple products and services too. With the right insurance plan, you can focus on running your business with confidence, knowing that your assets, employees, and customers are protected.