What Policies Do I Need?

The truck repair industry is crucial in maintaining the U.S. transportation infrastructure by ensuring commercial trucks remain operational. As demand for reliable freight transport grows, the industry has seen steady expansion in recent years and is expected to continue its upward trajectory.

Operating a truck repair shop involves servicing large vehicles such as on-highway, vocational, medium duty, and heavy haul trucks, requiring expertise in diesel engines, specialized tools, and a highly skilled team. Success depends on efficiently managing repairs, minimizing customer downtime, and balancing team coordination, inventory, and client relationships. As a busy truck repair shop owner, having the right insurance coverage lets you focus on running your service bays efficiently while ensuring your operations are protected.

In this article, we’ll explore the essentials of truck repair insurance with insights from Jason McConkey, Director of Transportation Underwriting at Central Insurance.

What are the Essential Truck Repair Insurance Policies You Need?

#1 – Liability Coverage is the Foundation of Truck Repair Insurance

General liability insurance is the backbone of any business insurance plan, as it protects your shop against third-party claims for bodily injury, property damage, and legal fees, such as if a customer slips and falls while on your premises. Tailored for the specific risks of a truck repair business, the Garage-keepers extension of liability insurance protects you against damages you are legally responsible for while a customer’s high-value commercial vehicle is in your care, custody, or control.

“The key factors in our garagekeeper underwriting process include how you manage security to prevent vehicle theft while in your possession, ensure they don’t catch fire, and minimize any further damage,” McConkey says.

Garage liability insurance extends beyond standard general liability by covering accidents resulting from your repair operations, including bodily injury or property damage arising from services performed by your mechanics.

Central offers a vehicle service endorsement and a specialized endorsement for defective products and faulty work related to garage operations for vehicle service risks. This endorsement restores coverage that a standard, unendorsed general liability policy would exclude.

#2 – Truck Repair Commercial Property Insurance Safeguards Your Assets

Your repair shop houses valuable equipment, diagnostic tools, and inventory. Commercial property insurance can cover your building and its contents in case of fire, theft, vandalism, or natural disasters. 

One major risk in truck repair shops is the improper disposal of oily rags and the potential for fire hazards that come with it.

McConkey recommends oily rags be stored in approved metal containers to prevent the risk of spontaneous combustion, which could lead to dangerous fires and significant property damage. 

Did You Know? Spontaneous combustion of oily rags happens when oxidation causes a gradual buildup of heat. As the oil on the rag oxidizes, it releases heat, and if that heat is trapped—such as in a pile of rags—the temperature can rise to the point of ignition, sparking a fire. In general, ensuring your truck repair operations comply with NFPA standards is crucial as a precaution against fires.

#3 – Commercial Auto Insurance for Businesses on the Move

If your repair shop offers pick-up and delivery of customer vehicles or goes out on the road to assess a vehicle’s condition, you need commercial auto insurance. This policy covers accidents involving company-owned vehicles used for business purposes. It protects against liability for bodily injury and property damage caused by accidents while driving company vehicles.

Learn more: Fleet Driving Safety: Protecting Your Drivers and Vehicles, No Matter the Size

How to Reduce Risks in Your Truck Repair Operations

Truck repair shops are filled with potential hazards, from maneuvering vehicles in tight spaces to handling heavy equipment, sharp tools, and chemicals. Beyond having the right insurance policies, implementing strong risk management practices can help lower premiums and prevent costly claims.

---

McConkey highlights the following examples that can help truck repair shops reduce risk:

• During the winter in the Midwest, snow and slush tracked in on boots increase the risk of slips and falls, making proper housekeeping essential.
• Securing customer keys greatly helps prevent theft. Verifying vehicle ownership is crucial, as the driver may not always be the owner. Understand the status and owner of each vehicle and whether it belongs to an employee or is leased.
• A fenced, well-lit lot with security cameras further reduces theft exposure.

---

“Truck repair operations are more complex than other businesses in the auto repair sector, requiring specialized certifications and adherence to industry standards,” McConkey states. “Given the higher risks associated with servicing large commercial vehicles, we expect to see stringent safety controls in place.”

McConkey goes on to explain that membership in organizations like the Truck Dealer Association or the Truck Frame & Axle Repair Association is favorable, as they employ ASE-certified mechanics. 

In his experience, “this level of certification and oversight is a key consideration for Central when evaluating risk.”

Work with an Experienced Truck Repair Insurance Partner

Selecting an insurance provider like Central that understands the unique risks of truck repair businesses is key to getting comprehensive coverage at a competitive rate.

“Working with the same insurance company year after year ensures that when challenges arise, you’re partnered with a reputable carrier that understands your business, knows how to handle claims, and is committed to doing the right thing,” McConkey explains. “Our focus is on paying what we owe and defending our insureds when claims arise.”

What’s more, McConkey emphasizes that “the lowest price doesn’t always mean the best coverage.” Instead, he recommends that “building a strong relationship with a carrier that offers appropriate coverage limits and truly understands the risks of your industry is essential.”The right truck repair insurance policies can provide peace of mind and financial security from the unexpected.

If you’re looking for tailored insurance solutions for your truck repair shop, speak with your independent, local Central agent who can help you navigate the best coverage options.