Tire Shop Insurance
Tire shop insurance protects businesses from risks like customer injuries, employee accidents, and property damage. It ensures compliance with state laws and lease terms while offering essential coverage options such as general liability, workers’ compensation, and commercial auto insurance.
Choose the right coverage from trusted insurance providers.
Why do tire dealerships need insurance?
A tire shop faces risk daily, from a customer’s vehicle damage to an employee injury. A car hitting a curb due to a defective tire can cause an accident, leading to costly repairs and medical payments.
Business insurance provides essential coverage, keeping you responsible and compliant with state laws and lease terms. Without proper insurance, you may struggle to comply, risking financial loss and legal trouble.
What types of insurance do tire shops require?
These coverage options protect against the most frequent risks faced by tire shops.
Business owner’s policy
A business owner’s policy (BOP) is a cost-effective solution for a tire shop, combining general liability coverage, commercial property insurance, and business interruption insurance. It protects if a customer suffers bodily injuries or if business property is stolen or damaged.
Under this plan
Covers customer injuries
Protects business property
Includes interruption insurance
Commercial umbrella insurance
A policy that boosts coverage limits for a tire shop, extending general liability insurance, commercial auto insurance, and employer’s liability insurance. It helps protect against expensive lawsuits from multi-vehicle auto accidents, customer injury, or employee injury.
Under this plan
Expands general liability coverage
Covers multi-vehicle accidents
Protects against costly lawsuits
Commercial auto insurance
A policy designed for a tire shop ensures protection if a tow truck or vehicle causes injuries or property damage. It meets state requirements by providing auto liability coverage for accidents involving another person and includes protection against vandalism and theft.
Under this plan
Covers injuries & property damage
Includes auto liability coverage
Protects against vandalism & theft
Cyber insurance
A policy for tire stores helps recover financially from data breaches and cyberattacks. It is recommended for businesses handling credit cards and personal information. Coverage includes customer notification expenses, fraud monitoring services, and data breach investigations.
Under this plan
Covers customer notification costs
Provides fraud monitoring services
Includes data breach investigations
General liability insurance
This insurance protects a tire shop from third-party claims like customer slips, injury, or customer property damage. It covers lawsuits from defective tires, slip-and-fall incidents, and damages caused by a new tire installation. Product liability also helps in such cases.
Under this plan
Slip-and-fall injury coverage
Property damage protection
Lawsuit assistance for defective tires
Worker’s compensation insurance
Workers’ comp is required by the state for tire businesses to protect employees and sole proprietors from work injury costs. It covers employee medical expenses, provides disability benefits, and prevents lawsuits. Unlike health insurance, it ensures claims aren’t denied.
Under this plan
Work injuries & medical expenses
Provides disability benefits
Protects businesses from lawsuits
Easy Steps to Get the Right Coverage
- Simple Application – Submit basic details like company info, revenue, and employee count.
- Quick Quotes – Compare insurance options from top-rated U.S. providers in just three steps.
- Instant Coverage – Choose policies, pay, and download your certificate of insurance.
- Tailored for Your Business – Whether you’re a new tire dealer, independent shop, or used tire dealer, we offer specialized policies, including surety bonds.
- Expert Assistance – Our licensed agents help you find the best coverage.
- Get a Free Quote – Apply online today with Eagle Nation!
Tire shop insurance designed to protect your business
With Eagle Nation, a tire shop owner can get the right business insurance to protect against unexpected accidents, injuries, and damaged vehicles. Avoid high out-of-pocket costs and legal fees with tailored packages, including General Liability, Professional Liability, Garage keepers liability, and Workers’ compensation coverage.
What’s the Cost of Tire Store Insurance?
The exact amount you’ll pay for tire shop insurance depends on several factors, including where your business is located, the value of your equipment, the size of your shop, and any certifications you hold.
To save money, consider a bundle that includes the right type of coverage for your needs. With Eagle Nation, you can buy the best policy at competitive rates, ensuring your business stays protected.
How Much Does Insurance Cost for Automotive Services?
The cost of insurance for a tire shop or independent auto service business varies based on several factors. The number of employees, the type of business, and the value of property and equipment all affect the premiums you’ll pay. A larger business with more assets and higher income may need broader coverage, which increases costs. The price also depends on the policy purchased, including its limits and deductibles, ensuring protection tailored to your needs.
Best Tips for Tire Shop Insurance
It’s a good idea for tire shops to have the right insurance to protect their business from risks like injury or property damage. If you lease or purchase a bay or shop, many property owners and banks require proof of general liability before you can open. Policies like Garage keepers coverage can help if customers’ vehicles are damaged while in your care, and they can also defend you from unexpected claims.
Two ways to start your coverage
Quotes online
Talk to an agent
Verified business insurance reviews
Hear from customers like you who purchased small business insurance.
FAQs about Tire Shop Insurance
To protect your tire shop from special risks, you need the right policies that cover both customers and their vehicles. Garage liability and general liability extend coverage to common exposures in garage operations, like a lawsuit if a customer slipped on an oily spot inside your vehicle service center.
For businesses that store or service cars, Garage keepers insurance is essential. It helps carry coverage for accidental damage to cars in your care, custody, and control, whether inside the shop or in the parking lot. This is especially useful for a car that gets damaged due to an employee's mistake in a service or auto repair shop.
To fully protect their business, tire dealers need various insurance products that cover different risks beyond standard liability. Here are key types of insurance every tire shop should consider:
- Product liability policy – Protects against legal costs if a defective product, like a new tire, has a tread issue that separates and causes an accident.
- General liability insurance – Covers common business risks, such as customer injuries or property damage.
- Errors and Omissions (E&O) insurance – Helps with lawsuits due to professional mistakes or oversights, like when a customer complains about a tire installation done incorrectly or taking longer than promised.
- Business Owners Policy (BOP) – Includes Business interruption coverage to help with costs if the shop is forced to close temporarily due to a fire, storm, or property claim.
- Equipment breakdown endorsement – Added to a commercial property policy to cover mechanical failure of essential tools and machinery.
- Surety bonds – Protect customers from employee dishonesty, negligent activities, and employee theft, ensuring the insurance company can reimburse losses.
- Waste tire hauler surety bond – Required in some states for businesses involved in tire recycling or scrap services before they can purchase proper coverage.
Owning a tire shop comes with many risks, but the right insurance packages can protect your business from costly problems. If a customer slips on spilled water in the waiting room and sustains a concussion, General Liability Insurance can cover medical expenses. If an employee accidentally backs a customer’s car into a bay post or damages it in the parking lot, Garage Keepers Coverage (which can be optional or included) helps pay for repairs.
Workplace injuries are another big concern. If an employee’s hand gets caught in a tire demounting tool, leading to an amputated thumb, Workers’ Compensation Insurance covers medical bills and lost wages. In many states, this coverage is required by law if you have employees. Having proper insurance helps save money, grow your shop, and prevent financial losses from unexpected accidents.
A tire shop needs General Liability Insurance, which covers third-party accidents if a customer slips and suffers injuries on the premises. This policy also includes Product Liability Insurance, which protects against lawsuits related to defective tires that could cause harm or accidents.
A popular myth is that an insurance provider will only cover the cost of all 4 slashed tires not just three. It sounds silly, right? However, car insurance does not limit coverage based on the number of tires. Instead, it depends on the policy terms, the cause of damage, and the type of coverage chosen. Comprehensive insurance may cover vandalism, while wear and tear is usually not included.
Top Insurance for Auto Services & Dealerships
Don't see your profession? Don't worry.
We insure most businesses.
Eagle Nation made getting tire shop insurance quick and hassle-free. The coverage is comprehensive, and the rates are very competitive!