A Simple Guide for Arizona Auto Repair, Tire, and Mechanic Shops
Running a shop means you’re responsible for your team, your customers, and their cars. Use this checklist to make sure your insurance keeps up with the risks you face every day — without the jargon or confusion.
1. General Liability
What it does: Covers customer injuries or property damage that happen at your shop.
Example: A customer trips over an air hose and breaks their wrist — your policy pays their medical bills and legal costs.
What to check:
□ Limit of at least $1M per occurrence
□ “Products and Completed Operations” included (covers work after the car leaves)
2. Garage Liability
What it does: Extends General Liability to cover accidents from your operations or test drives.
Example: A tech test-drives a car after a brake job and rear-ends someone — Garage Liability covers the damages.
What to check:
□ “Garage Liability” or “Garage Package” on your declarations page
□ Properly listed test drive coverage
3. Garagekeepers Coverage
What it does: Protects customer vehicles in your care, custody, or control.
Example: A fire or theft damages cars on your lot overnight.
What to check:
□ Coverage Form: Direct Primary (recommended) or Legal Liability
□ Limit matches your average number/value of cars held overnight
4. Commercial Property Insurance
What it does: Covers your building, lifts, tools, and diagnostic equipment.
Example: A fire damages your compressor and alignment rack.
What to check:
□ Replacement cost coverage
□ Business Income (Loss of Use) included — pays lost revenue while repairs are made
5. Business Auto Insurance
What it does: Covers vehicles owned or used by your shop.
Example: Your pickup is hit while picking up parts — Business Auto covers repairs and liability.
What to check:
□ “Hired and Non-Owned Auto” added (covers employees using personal cars for work errands)
□ Adequate liability limits (usually $1M combined single limit)
6. Workers’ Compensation
What it does: Pays medical bills and lost wages if an employee is hurt on the job.
Example: A mechanic injures their back lifting a transmission.
What to check:
□ Required for any Arizona business with employees
□ Payroll classified correctly under mechanic/garage codes (to avoid overpaying)
7. Umbrella Liability
What it does: Adds extra protection over your other liability policies.
Example: A severe accident causes a lawsuit that exceeds your $1M limit — the Umbrella picks up the rest.
What to check:
□ Covers all underlying policies (GL, Auto, Garage, WC)
□ Consider $1M–$5M depending on your exposure
Bonus Coverages Worth Considering
Employment Practices Liability (EPLI): For claims of wrongful termination or discrimination.
Cyber Liability: For credit card or customer data breaches.
Tool & Equipment Floater: For portable diagnostic tools and laptops.
Pollution Liability: For oil or coolant spills, disposal mishaps.
Quick Self-Check
Mark the boxes you can confidently say “yes” to:
□ I have Garagekeepers coverage matching the cars I store overnight.
□ I’ve confirmed my General Liability includes completed operations.
□ My Workers’ Compensation payroll classes are correct.
□ My Property Policy Includes Business Income
□ My Business Auto has Hired/Non-owned Coverage
□ My Umbrella covers all my policies.
Next Step
If you couldn’t check every box — don’t worry. Wilson Insurance can help!
Download the full guide or request a quick coverage review — we’ll help you identify gaps, reduce overlap, and find better rates. No calls. No drop-ins. Just straight answers.
