If you run an auto repair shop, a towing company, or a commercial truck repair operation, you already know your business doesn't run like a typical retail storefront. You've got vehicles that don't belong to you sitting on your lot. You've got tow trucks out on the road at 2 a.m. in bad weather. You've got mechanics working under vehicles, around lifts, and near flammable fluids all day long. The risks are different, and honestly, your insurance should be too.
We've spent a lot of time sitting across the table from shop owners, tow operators, and fleet repair businesses across Indiana and surrounding states, and the same questions come up again and again. So we put together this guide to walk through the coverage that actually matters for businesses like yours — no jargon, no sales pitch, just straight answers.
"A customer's car got damaged while it was in our shop. Am we covered?"
This is probably the single most common concern we hear, and it's exactly what garage keepers liability insurance is built for. Whether a vehicle is damaged by fire, theft, vandalism, or an accident while it's in your care, custody, or control, this coverage helps pay to repair or replace it. Without it, you could be paying out of pocket for damage that happened on your watch — even if it wasn't really "your fault" in the traditional sense.
If you're a repair shop or a towing company that stores vehicles overnight, this isn't optional in our book. It's foundational.
"What about damage or injuries that happen because of the work we actually did?"
That's where garage liability insurance comes in, and it's different from garage keepers coverage. This protects you if a repair job goes wrong and causes an accident down the road, or if someone gets hurt on your premises. Say a brake job wasn't done correctly and it leads to a collision later — garage liability is what stands behind you when a claim like that comes in.
"Our tow trucks are out on the road constantly. What happens if one of them is in an accident?"
Commercial auto insurance covers your tow trucks, service vehicles, and any other vehicles you own and use for business. This handles liability if you cause an accident, plus physical damage to your own trucks. Given how many miles your fleet racks up and the conditions your drivers deal with — highway shoulders, bad weather, middle-of-the-night calls — this is one area where we really encourage owners not to cut corners on limits.
"What if we damage the vehicle We're towing?"
This one catches people off guard. Standard commercial auto coverage often doesn't fully address damage to a vehicle while it's being towed or hooked up. That's where on-hook towing coverage comes in — it protects the vehicle you're actively hauling, whether it's on a hook, a flatbed, or being winched out of a ditch. If towing is part of your business, this coverage closes a gap that a lot of owners don't realize exists until it's too late.
"we do commercial truck repair — do we need something different than a standard auto shop policy?"
Generally, yes. Commercial trucks and trailers bring higher values, more complex mechanical systems, and often heavier liability exposure than passenger vehicles. If you're working on semis, box trucks, or other commercial fleets, you'll want garage keepers and garage liability coverage that's actually built with those higher values and risks in mind — not a policy designed around sedans and pickups. This also often ties into cargo considerations if you're ever moving a customer's loaded trailer.
"What about our building, our tools, and our equipment?"
Commercial property insurance covers your building (if you own it), along with your tools, lifts, diagnostic equipment, and inventory. If a fire, storm, or break-in damages your shop or the expensive equipment inside it, this is what gets you back up and running. Given how much modern diagnostic and lift equipment costs to replace, We'd rather see a shop owner slightly overinsured here than caught short.
"Do we really need workers' comp? It's just us and a couple guys."
If you have employees — even one — most states require workers' compensation insurance, and for good reason. Shop work involves real physical risk: lifting heavy parts, working with power tools, being around vehicles on lifts. If an employee gets hurt on the job, workers' comp covers medical costs and lost wages, and it protects you from a lawsuit over that injury. This isn't just a box to check for compliance — it's protection for your team and your business both.
"What's an umbrella policy, and do we actually need one?"
Think of umbrella insurance as a backstop. If a serious claim exceeds the limits on your other policies — say a major accident involving a customer's high-value truck, or a liability claim that spirals — umbrella coverage kicks in to cover the gap. For businesses handling other people's vehicles and operating trucks on public roads regularly, we generally recommend at least looking at umbrella limits, because the exposure in this industry tends to run higher than people expect.
"What if our computer systems or customer data get compromised?"
More shops are running on digital scheduling, payment processing, and customer records than ever before. Cyber liability insurance helps cover the costs of a data breach, ransomware attack, or other cyber incident — things like notifying affected customers, legal costs, and getting your systems back online. It's not just a "big company" problem anymore.
Building a Policy That Actually Fits Your Business
Here's the thing — no two shops are exactly alike. A towing company running trucks around the clock has a different risk profile than a repair shop that's closed by 6 p.m., and a commercial truck repair operation has different exposure than a shop that mostly works on passenger cars. The right coverage really comes down to what your business actually does day to day: how many vehicles you have on-site, what kind of work you're doing, whether you're towing, and what your fleet looks like.
We'd rather sit down, understand your operation, and put together coverage that fits — instead of handing you a one-size-fits-all package and hoping it works out.
If you run an auto repair shop, towing company, or commercial truck repair business anywhere in Indiana and surrounding states, We're happy to walk through your current coverage or help you build a policy from scratch. No pressure, just an honest conversation about what makes sense for your business.
This blog post is provided for general informational purposes only and does not constitute insurance, legal, or financial advice. Coverage availability, terms, and requirements vary by policy, insurer, and state law. Please contact Shurr Insurance Agency directly to discuss your specific business needs and to review actual policy terms and conditions before making any insurance decisions.