5 Big Reasons your CA Auto Repair Shop Really Needs to be Insured

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5 Big Reasons your CA Auto Repair Shop Really Needs to be Insured

By Zuma Insurance Services | June 21, 2017

CA auto repair shops

Why You Should Get Auto Repair Business Insurance

Californians love cars. They name them, pamper them, and only trust their care to professionals. Operating an auto repair shop comes with the responsibility, and the professional liability, to provide a high level of service. But, things can go wrong, and insurance for auto repair shops is absolutely necessary.

  1. Business Auto Liability

Whether operating an owned vehicle, towing a car, or test driving a customer car, the auto repair business is liable for damages as a result of at-fault accidents. Insurance investigates, handles, negotiates, and pays these claims. Contractors, small business owners, and garages all face this exposure to loss. Contractors and small business owners can cover this risk with business auto insurance. CA auto repair shops should have Zuma Insurance review and help select the proper form of coverage.

  1. Care, Custody and Control

When a customer trusts a car shop with their “baby”, they expect the shop owner to treat it with great care. Insurance for the auto repair industry is designed to protect the value of assets in the care, custody and control of the shop.

Whether the vehicle is caught in a hail storm, damaged during the repair work, or dented during a test drive, insurance for the auto repair business can be designed to pay for the damage. As long as the business has possession of a customer car, the business has a responsibility to take care of it.

Most important – the customer’s vehicle is restored.

Auto Repair Shop Insurance Protects This Shop

  1. Damage Caused by the Repair

Mistakes do occur. Suppose a technician forgets to add oil after an oil change, the engine may be permanently damaged. The torque wrench fails and a tire comes off while driving. Mistakes or faulty equipment makes the auto repair shop owner look unprofessional and causes severe, costly damage. Insurance programs, if properly defined, pay to correct these problems.

  1. Collision Damage

Test driving, or even pulling a car into the garage, risks colliding with an object or another car. Repair shop owners need to be covered as if the customer car were their own. The owner will want the prized possession made whole again.

driving a car

  1. Collateral Damage

If the customer does not have the use of their car through the fault of the auto repair shop, or because the car was damaged while in the care, custody, and control of the shop, the proprietor may be liable to provide a substitute car to their customer. The best small business iInsurance for the auto repair industry pays for these collateral damages as well.


Zuma Insurance has relationships with several top-rated insurance companies in order to negotiate the best deal for your business insurance needs. Contractors and small business owners can profit from the advice and insurance services from Zuma, where auto service businesses can untangle the possible insurance solutions to complicated issues.

Garagekeepers’ Liability combines business auto with general liability coverage to anticipate the values of other people’s vehicles. Like a business owners policy (BOP) has a combination of coverage often needed by a small business, garage liability combines coverage to create the proper coverage for an automobile service business.

Insurance for the auto repair business can include:

  • Coverage for autos in the repair shops’ care, custody, and control.
  • Liability coverage for damage caused by mistakes and poor repairs.
  • Collision coverage
  • Collateral damages

Zuma Insurance finds and designs the most appropriate coverage for your company. Whether you need business auto, a business owners policy, garagekeepers coverage, or garage liability for your retail shop, contractor business, or auto repair shop, Zuma Insurance experts will help you control and insure your risks.

If you own a business, call Zuma Insurance. If your California clients love their cars, contact us now.