If you own an auto repair shop in Massachusetts, protecting your business means more than just locking the doors at night. Whether you’re changing oil, repairing engines, or managing a team of technicians, having the right insurance coverage can help you respond to unexpected risks. At Coonan Insurance Agency, we’re here to help you understand your options when it comes to auto repair insurance in Massachusetts.
Below, we’ve put together a quick guide that covers the key things to know about insuring your auto repair business in the Bay State.
What Is Auto Repair Insurance?
Auto repair insurance refers to a combination of coverages that may be designed to help protect businesses that provide automotive services. Rather than a single policy, it often includes multiple types of insurance tailored to the needs of Massachusetts auto repair shops. These coverages can help respond to risks like customer vehicle damage, employee injuries, or fire and theft.
Many shop owners consider a Business Owners Policy (BOP), which can combine general liability and commercial property coverage. Other coverages, such as garage liability and garagekeepers insurance, may also be important for businesses that store or work on customers’ vehicles.
Why Do Massachusetts Auto Repair Shops Need Insurance?
Auto repair shops in Massachusetts face a unique combination of risks. In addition to general business exposures, you may also be working on high-value vehicles or handling hazardous materials. State and local regulations may also influence what coverage is advisable for your shop.
For example, if your business services customer vehicles or test-drives them, you may be exposed to liability in the event of an accident. Having proper insurance coverage in place can help you manage these risks and stay focused on serving your customers.
What Types of Coverage Are Common for Auto Repair Shops?
While coverage needs can vary from business to business, here are some types of insurance Massachusetts auto repair shop owners often consider:
- Garage Liability Insurance: This coverage may help protect your business from liability related to operations, such as customer injuries on your premises or damage caused during vehicle repairs.
- Garagekeepers Coverage: If your business stores customers’ vehicles overnight or during service, this coverage can help provide protection if a car is stolen or damaged while in your care.
- Commercial Property Insurance: Covers the physical location of your shop and its contents, including tools, equipment, and inventory, in the event of fire, theft, or certain natural disasters.
- General Liability Insurance: Helps protect against third-party claims of bodily injury, property damage, or personal injury.
- Workers’ Compensation: Required by Massachusetts law if you have employees. This insurance may provide benefits to workers who suffer job-related injuries or illnesses.
- Commercial Auto Insurance: If your business owns or uses vehicles for parts runs, pickups, or test drives, this coverage can help with accidents or damage involving company-owned vehicles.
How Much Does Auto Repair Insurance Cost in Massachusetts?
Insurance premiums can vary widely depending on several factors. In Massachusetts, the cost of auto repair insurance may be influenced by:
- The size and location of your business
- The types of services you offer
- The number of employees you have
- Your claims history
- The value of your property and equipment
Some small shops may pay a few thousand dollars annually for basic coverage, while larger operations with multiple bays and employees may see higher premiums. Working with a local independent insurance agency like Coonan Insurance can help you compare options from multiple carriers to find a policy that fits your needs and budget.
Are There Legal Requirements for Auto Repair Insurance in Massachusetts?
If you have employees in Massachusetts, you are legally required to carry workers’ compensation insurance. Depending on the services you offer, there may also be other licensing or permit requirements that necessitate proof of insurance.
While some coverages may not be legally required, they can be highly recommended to help protect your business from costly losses. A licensed insurance professional can help you determine what’s appropriate for your operation.
What Should I Look for in an Auto Repair Insurance Policy?
When evaluating insurance for your auto repair shop, it’s important to consider:
- Coverage Limits: Do the limits meet your potential risk exposure?
- Exclusions: What is not covered under the policy?
- Deductibles: Are you comfortable with the out-of-pocket costs in the event of a claim?
- Claims Support: Does the insurer have a good reputation for handling claims?
Each business is different, so what works for one Massachusetts shop may not be right for another. Customizing your policy can help ensure you have the appropriate level of protection.
How Can Coonan Insurance Agency Help?
At Coonan Insurance Agency, we understand the challenges faced by local Massachusetts auto repair businesses. We work with multiple insurance carriers to help find policies that align with your specific needs. Whether you’re a one-person shop or a growing operation with several bays and employees, we’ll help you explore your options for coverage, pricing, and protection.
Our team is based right here in Massachusetts, so we understand the local regulations, risks, and expectations. We’re here to provide guidance, answer your questions, and help you protect what you’ve built.
Ready to Review Your Auto Repair Insurance?
If you’re looking to update your current coverage or start fresh with a new policy, we’re here to help. Contact Coonan Insurance Agency today to schedule a consultation. We’ll walk you through your options and help you make informed decisions about your Massachusetts auto repair insurance needs.
