Core coverages in this program
- •Garage Liability
- •Garage Keepers (customer vehicles)
- •Commercial Property & Business Income
- •Tools & Equipment (inland marine)
- •Workers' Compensation
- •Commercial Auto for shop and tow vehicles
Garage keepers: legal liability vs. direct primary
Legal liability garage keepers pays for a customer's vehicle only when you are proven negligent. Direct primary pays regardless of fault — so a hailstorm, a fire, or an unexplained theft from your lot is covered without a negligence fight with the customer's own insurer. Direct primary costs more, and it is the version most shops actually want. Set the limit at the maximum value of vehicles on your lot on a busy Friday, not an average day.
What auto repair shop insurance costs
Premium tracks payroll, sales, lot values, and the type of work — heavy-line engine and transmission work, welding, and towing rate higher than tire and quick-lube operations.
| Coverage | Typical annual premium | Rating basis |
|---|---|---|
| Garage liability $1M/$2M | $1,200–$3,500 | Sales, payroll, work performed |
| Garage keepers $100K direct primary | $800–$2,500 | Lot value, security, location |
| Property + business income | $1,000–$3,500 | Building/contents value |
| Workers' compensation | $2.50–$6.00 per $100 payroll | Class code 8380, experience mod |
Need a COI for a contract?
Send us the contract's insurance requirements and we'll tell you exactly what coverage satisfies them — existing clients get same-day certificates.
Faulty workmanship, test drives, and the exclusions that bite
Garage liability generally excludes the cost to redo your own faulty work, though it covers resulting damage — a brake job that fails and causes a collision is a covered loss even though the brake job itself is not. Test drives are covered under garage liability, but employees must be listed drivers with acceptable MVRs; an unlisted driver with a suspended license is a common denial. If you offer loaner vehicles, they must be scheduled specifically.
Compliance and contract requirements
Landlords require $1M/$2M liability with additional insured and waiver of subrogation. Fleet, dealership, and municipal accounts frequently require higher limits, garage keepers evidence, and proof of workers' comp before adding you as a vendor. Environmental exposures from waste oil and solvents are excluded by standard forms — a pollution endorsement is inexpensive and increasingly required by landlords.
Ready for a benchmarked quote?
A KTL specialist will shop your risk across multiple A-rated markets within one business day.