Automotive insurance is designed for dealerships, repair shops, and service providers across the auto industry. With Canada’s auto industry directly employing 125,000 workers in 2022, specialized coverage addresses garage liability, inventory protection, and the operational risks unique to automotive businesses.
Automotive businesses operate in high-risk environments involving vehicles, customers, equipment, and inventory.
From customer injuries and vehicle damage to theft, equipment breakdowns, and liability claims, automotive businesses need insurance coverage designed to meet these unique exposures.
At Oracle RMS, we help protect business owners from costly legal claims, vehicle replacement expenses, and operational interruptions, allowing them to focus on serving clients and growing their business with confidence.
Our brokers understand the unique risks of automotive operations and deliver tailored coverage to keep your business moving forward. Contact us or request a quote today.
We arrange coverage across the automotive sector, including new and used car dealerships, repair garages and service centres, collision and body shops, tire shops, detailing operations, auto glass installers, parts retailers and wholesalers, towing and recovery operators, and mobile mechanics. Each carries a different mix of premises, product, and customer vehicle exposures, so the packages we build differ considerably from one operation to the next.
Only if you carry customers’ automobiles coverage, sometimes called care, custody and control coverage. A general liability policy specifically excludes damage to property in your care, so a fire in the shop, a theft from the lot, or damage during a road test would not be covered. Your coverage should reflect the maximum value of customer vehicles on your premises at any one time.
That exposure falls under products and completed operations coverage, which responds to claims that faulty workmanship, a defective installed part, or an incomplete repair caused injury or property damage after the vehicle left your shop. It is one of the most significant exposures a repair business carries, and your coverage should be reviewed against the type of work you actually perform.
Commercial property coverage protects your building or leasehold improvements, hoists, diagnostic equipment, and parts inventory against fire, theft, and water damage. Tools frequently need separate scheduling, especially if technicians own their own sets or take them off-site. Equipment breakdown coverage is worth discussing as well, since a failed compressor, alignment rack, or paint booth can halt revenue while repairs are arranged.
Towing operations require on-hook legal liability for vehicles being towed, garage keepers or storage coverage for vehicles held at your compound, commercial auto for the tow trucks themselves, and general liability for roadside and premises exposures. Contracts with municipalities, police services, or auto clubs often specify particular wording, and Oracle RMS can confirm your certificates meet those requirements.
Insurers look closely at loss history, lot security, and employee driver records. Monitored alarms, perimeter fencing, gated compounds, camera coverage, and controlled key storage all influence pricing. Formal hiring standards and regular abstract reviews for anyone who drives customer vehicles also help, as does documented shop safety and hazardous materials handling. Your broker will identify which carry the most weight with your insurer.
