Auto Repair Shop Insurance in Colorado

Auto repair shops in Colorado face a number of risks that can cause adverse implications for business operations and profitability. They are highly exposed to several liabilities which includes the following:

• property damage
• bodily injury
• personal injury
• product liability
• advertising injury
• employee practices liability
• professional/errors-omissions (E&O) liability
• cyber liability
• workers’ compensation
• auto-related environmental liability

A well-crafted combination of insurance policies can help to protect auto repair shops against these risks properly. You can choose to purchase auto repair shop insurance coverage either as a standalone policy or as part of a package policy.

At 3R Insurance Agency, we understand your unique needs and specialize in providing comprehensive coverage for auto repair shops throughout Colorado. Our experienced team of insurance professionals has designed specialized packages to ensure you are adequately covered and protected against all risks associated with operating an auto repair shop. 

We provide our clients with tailored solutions that meet their individual needs by considering current regulations, potential losses, financial obligations, and customer demands. Our top-notch insurance packages are designed to provide the perfect combination of protection and value for your auto repair shop.

We work with leading insurers to get you the most competitive rates available in Colorado so that you can focus on running your business without worrying about costly insurance premiums. 

Contact us today to learn more about our customized insurance packages and how they can help protect your auto repair shop from all sorts of losses.

Auto repair shops in Colorado should consider the following coverages:

Commercial Property Insurance

Commercial property insurance safeguards the value of your auto repair shop property by providing coverage for supplies, equipment, furniture, buildings, computers, and other assets. In the event of unforeseen disasters such as fire, water damage, theft, explosion, storms, hail, or vandalism, this insurance helps replace or repair any damaged property.

Business Interruption Insurance

Business interruption insurance, a valuable addition to commercial property insurance, offers coverage for lost income and operating expenses when your auto repair business is forced to close due to property damage. It helps mitigate financial losses by covering fixed expenses like payroll, utilities, and rent during the closure period.

Garage Liability Insurance

Garage liability insurance is specifically designed for automotive industry businesses. It covers accidental third-party injury or property damage resulting from your garage operations and also provides commercial auto liability coverage. This insurance is necessary as general liability policies commonly exclude coverage for injuries or damage arising from garage operations.

Garage keepers Insurance

Garage keepers insurance is crucial for auto repair shops that handle customer vehicles for repairs, storage, or service. This coverage protects against unexpected disasters that may damage a customer's vehicle while in your care. Garage keepers insurance reimburses you for the repair costs if such damage occurs.

General Liability Insurance

General liability insurance protects your auto repair business from claims of personal injury, property damage, bodily injury, and advertising injury caused to third parties. It covers incidents where vendors, customers, or partners sustain injuries on your premises. 

It also provides coverage for injuries or damages resulting from your products or completed operations.

Workers' Compensation Insurance

Workers' compensation insurance in Colorado provides financial and medical benefits to employees or their survivors in the event of illnesses, work-related injuries, or deaths. Almost all states require this coverage, and non-compliance can result in severe fines or penalties. 

Given the physical risks of working in an auto repair shop, adequate workers' compensation coverage is essential.

Pollution Liability Insurance

Pollution liability insurance covers property damage, bodily injury, and cleanup costs arising from releasing pollutants during your company's work. Since auto mechanics frequently handle fuel, oil, solvents, and other toxic chemicals, they have increased exposure to pollution-related claims. This insurance provides financial support if your business causes environmental damage.

Errors and Omissions Insurance

Errors and omissions insurance safeguards your auto repair company from allegations of mistakes or negligence in your professional work. While your mechanics may be well-trained and meticulous, there is always a risk of errors. 

General liability insurance covers damages caused by completed operations, but errors and omissions insurance extends coverage to potential damages caused by work that has yet to be completed.

Commercial Auto Insurance

Commercial auto insurance is crucial for covering your company's vehicles. It is particularly important if your business offers towing services or if employees use vehicles for tasks like picking up car parts or transporting customers. 

In the event of an accident, while driving for business purposes, commercial auto insurance provides coverage for physical damage to vehicles, third-party bodily injury, and property damage.

Commercial Crime Insurance

Commercial crime insurance reimburses losses resulting from burglary, forgery, fraud, theft, robbery, and other crimes. This coverage applies to both external parties and internal employees. As auto repair businesses often possess valuable inventory and equipment, they are susceptible to theft and other crimes. Commercial crime insurance provides financial protection against crime-related losses.

Equipment Breakdown Insurance

As an auto repair shop, you depend on specialized equipment like lifts to carry out your work effectively. However, if any of this equipment breaks down, it can severely affect your ability to complete your tasks. 

While some business owners may assume that their commercial property insurance would cover such situations, it is important to note that equipment breakdowns are usually not included in commercial property coverage.

There are additional insurance coverages for auto repair shops in Colorado. They are:

• A Business Owner's Policy (BOP): This benefits smaller and medium-sized auto repair shops in Colorado. This policy combines various coverages like business income, property, general liability, and extra expense coverage into a single package. It's usually more cost-effective than purchasing these coverages separately.
• Cyber Liability Insurance: This type of insurance protects against financial losses that may occur due to cyber events such as data breaches, hacking, viruses, and denial of service attacks. Auto repair shops often handle sensitive customer information like credit card numbers, so having this coverage can be crucial.
• Employment Practices Liability Insurance (EPLI): This coverage safeguards businesses from lawsuits filed by employees who claim mistreatment, including allegations of discrimination, harassment, or other employment-related issues.
  

On average, the cost of auto repair shops insurance in Colorado can range from $500 to $2,000 per year. However, there are many factors that may influence this cost. These factors include:

• Business size
• Claims history
• Industry
• Location
• Type of coverage
• Employee risk exposure
• Number of employees
• Total assets insured

Auto repair shops in Colorado that are considered riskier in their operations will be charged higher insurance premiums than those deemed lower risk. For instance, an auto repair shop with a track record of filing numerous insurance claims will face elevated premium costs. 

Moreover, as the coverage limits of insurance policies increase, the premiums also tend to rise. It is advisable to compare pricing from various insurance providers since each company employs different methods to assess and rate risks.



The team at 3R Insurance Agency is here to help you get an accurate estimate on pricing for auto repair shop insurance in Colorado. We are dedicated to finding the best coverage at the most affordable rates, and we will work hard to ensure you and your business get the protection you need to stay safe.

There are many different ways to lower the cost of auto repair shop insurance in Colorado. Some of these include:

• Improve Your Credit Score: A good credit score can help you qualify for lower auto repair shop insurance premiums.
• Increase Your Deductibles: Raising your deductible can also help reduce insurance costs by lowering the amount you pay in monthly premiums.
• Take safety precautions: Taking steps to reduce the risk of accidents or injury on the job can help to lower your rates.
• Monitor claims history: Keeping an eye on any risks posed by employees and customers alike can help you avoid filing costly insurance claims.
• Bundle Policies: Bundling your auto repair shop insurance with other types of coverage, such as property or general liability insurance, can help you save on premiums.
• Consider Paying Annually: Paying your annual premium upfront can save you money in the long run, as some insurers will offer discounts for paying in full.

By taking the time to shop around for auto repair shop insurance in Colorado, you can find affordable coverage that meets your needs and protects you from liability.

3R Insurance Agency is an independent insurance agency, and we’re here to help you compare rates on Colorado auto repair shop insurance. 

We have access to various companies and plans so that you can find the best coverage for your business with the lowest possible premiums. Our team will work with you to evaluate your specific needs and get you an accurate quote quickly. 

Contact us today for more information or to start comparing Colorado auto repair shop insurance quotes.