Underwriting Guide
What Underwriters Ask About Auto Repair Shops
Auto repair shops carry a unique mix of exposures: garagekeepers liability for customer vehicles in their care, general liability for customer injuries on premises, and workers' compensation for technician injuries. Garages working on customer vehicles must carry garagekeepers coverage — standard GL alone does not cover vehicles in the shop's care, custody, or control.
Garage LiabilityGaragekeepers LiabilityWorkers' CompensationCommercial PropertyCommercial Auto
Operations
What services does the shop perform — oil changes, brakes, engine work, transmission, body work, paint?
Why they ask: Service type affects risk class. Body shops and paint booths have fire exposure. Engine and transmission work involves higher vehicle values.
Does the shop perform any tire mounting or alignment services?
Why they ask: Tire-related accidents (improper mounting causing a blowout on the highway) create significant completed operations liability.
Does the shop test-drive vehicles after service?
Why they ask: Test drives create auto liability exposure. Mechanics driving customer vehicles on public roads are a significant risk.
Does the shop work on motorcycles, boats, or specialty vehicles?
Why they ask: Non-standard vehicles may require separate coverage or endorsements. High-value exotics and classics need stated value coverage.
Does the shop offer towing services or roadside assistance?
Why they ask: Towing creates commercial auto exposure for the tow truck and garagekeepers liability for the vehicle while in tow.
Garagekeepers Exposure
How many customer vehicles are typically on premises at one time?
Why they ask: Garagekeepers limits should reflect the maximum value of customer vehicles on premises. A shop with 20 vehicles averaging $25K needs at least $500K in garagekeepers limits.
What is the average value of customer vehicles serviced?
Why they ask: Shops servicing high-value or luxury vehicles need higher garagekeepers limits to cover potential total losses.
Are customer vehicles stored indoors or outdoors overnight?
Why they ask: Outdoor storage increases theft and weather damage exposure. Some carriers require indoor storage for coverage above certain values.
Does the shop have a security system and cameras?
Why they ask: Vehicle theft from auto shops is common. Security measures reduce both theft frequency and premium.
Employees & Loss History
How many technicians and service advisors are employed?
Why they ask: WC for auto repair includes significant mechanic injury exposure: lifting, chemical exposure, tool injuries, and vehicle falling from lifts.
Provide 5 years of loss runs for garage liability, garagekeepers, and WC.
Why they ask: Prior garagekeepers claims (fire, theft, vehicle damage) significantly affect pricing and eligibility.
Does the shop use a lift inspection program and maintain service records for all lifts?
Why they ask: Vehicle lift failures causing injury are a major WC and GL exposure. Documented maintenance programs reduce this risk.
Answers that raise red flags
⚠No garagekeepers coverage for a shop holding customer vehicles — standard GL excludes care/custody/control
⚠Multiple prior vehicle theft or fire claims
⚠Working on high-value exotic or collector vehicles without stated value coverage
⚠Test drives without commercial auto coverage for employees driving customer vehicles
⚠Paint booth present without appropriate fire suppression
⚠Lift inspection records not maintained
Tips for presenting this risk favorably
✓Calculate garagekeepers limits based on the maximum number of vehicles on premises times the average vehicle value
✓Document lift inspection and maintenance records — this is a key loss control factor
✓Confirm whether test-drive exposure is covered under the garage liability form or needs a separate commercial auto policy
✓Identify the highest-value vehicles the shop regularly services — exotic or collector cars may need a separate endorsement
✓Include security system information: cameras, alarms, and vehicle key control procedures
Collect all this information automatically
AgencyAssist sends your client a plain-English intake link and maps every answer to the correct ACORD fields — including all the questions above.