Auto Body Shop Insurance

Get reliable insurance for your professional services, tailored by BrokerLink.

Running an auto body shop means fixing dents, refinishing paint, and restoring vehicles to pre-accident condition. But with heavy tools, customer vehicles, and flammable substances on-site, risks are high, and the costs of mistakes can be even higher. Whether you operate a single-bay shop in Calgary or run a multi-location body shop in Toronto, tailored auto body shop insurance protects you from liability claims, shop damage, tool theft, third-party injury lawsuits, and more.

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BrokerLink compares rates from a wide range of providers, ensuring you get the best deals available.

What is auto body shop insurance?

Auto body shop insurance is a type of business insurance that's tailored specifically for collision repair and vehicle restoration businesses. While your focus is on repairing dents, painting bumpers, or recalibrating sensors, your shop handles high-value vehicles, flammable materials, and potentially hazardous equipment, creating ample exposure on both liability and property fronts.

Auto body shop insurance bundles coverages like general liability, commercial property, tools and equipment, garage keepers liability, equipment breakdown, and pollution liability, all tailored for collision repair environments. This insurance is essential whether you operate a single stall in a small town or manage a multi-bay facility in a big city, because when customer vehicles are entrusted to you, comprehensive financial protection is non-negotiable.

Who we help

Running a business is hard work, but BrokerLink simplifies insurance, letting you focus on your business with coverage tailored for any size or industry. Secure your business with us today.

From small-town repair shops to full-service collision centres, BrokerLink works with auto body professionals of all sizes in Canada to protect their livelihoods.

Fleet repair facilities
Custom body fabricators
Auto restoration specialists
Franchise body shop operators
Independent collision repair shops
Windshield and glass repair technicians
Full-service auto body and paint facilities
Mobile dent and scratch removal technicians

Why do you need auto repair shop insurance?

Auto body shops juggle everything from heavy vehicle repairs and paintwork to specialty components and customer vehicles, often at high risk of fire, tool theft, or worksite accidents. A single mistake or damage claim can cost more than your monthly overhead.

According to the Insurance Institute, the average collision repair cost per claim reached over $5,000 in the first half of 2023 in Canada, a 12% increase year-over-year. But with rising labour rates, expensive EV parts, and advanced driver-assistance systems, the average cost per claim is higher than ever.

Just imagine that while repairing a vehicle, a technician accidentally damages a high-cost sensor or control unit. Or a flood in the shop destroys several repair bays, halting operations for over a week. With no body-shop-specific insurance, you’d eat the cost and risk losing customers. Auto body shop insurance bundles critical coverages to protect your shop’s reputation, your customers’ vehicles, and your bottom line, so that one claim doesn’t end your business.

Types of coverage for auto body shops in Canada

Running an auto body shop means dealing with expensive tools, hazardous materials, customer vehicles, and constant movement in the shop. Some insurance coverages are essential to operate and earn customer trust, while others are helpful add-ons that protect you from risks you might not see coming. Here's what we suggest you consider for your auto repair shop insurance policy:

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Commercial general liability (or garage liability) insurance helps protect you if your work accidentally causes third-party bodily injury or property damage to someone who isn’t your employee. It covers third-party medical costs and repairs, as well as your legal fees and settlements.

Garage keepers' liability insurance protects your customers’ vehicles while they’re in your care, custody, or control. This includes whether they're parked in your shop, stored overnight, or being test‑driven.

If you use a shop truck, parts van, or mobile unit for estimates, pick‑ups, or mobile repairs, this coverage protects your work vehicles against accidents, theft, and liability claims. Commercial auto is mandatory in Canada for all commercial vehicles. However, if your business does not operate a vehicle for work purposes, you do not need this coverage.

Commercial property insurance helps cover your building, contents, inventory, and shop equipment against fire, theft, vandalism, and other insured perils. This coverage is often paired with business interruption insurance, which helps keep cash flow going if you’re forced to temporarily close due to an insured event.

Your specialty tools and repair equipment are essential to running your auto body shop. Whether they’re in your shop, locked in a service vehicle, or stored off‑site, this coverage protects them from theft, loss, or damage caused by insured events.

Equipment breakdown insurance covers the cost to repair or replace essential shop equipment if it suffers a sudden mechanical or electrical failure. This includes paint booth ventilation systems, frame straightening machines, air compressors, welding equipment, and spray systems.

Many auto shops regularly store sensitive customer data and use connected diagnostic tools. Cyber insurance helps protect you if that data is hacked or stolen.

Pollution liability insurance helps cover any costs due to accidental pollution caused by hazardous shop materials like paint, solvents, or oil.

Crime insurance helps protect against financial loss caused by employee dishonesty, theft, or fraud.

Many auto shops regularly store sensitive customer data and use connected diagnostic tools. Cyber insurance helps protect you if that data is hacked or stolen.

Pollution liability insurance helps cover any costs due to accidental pollution caused by hazardous shop materials like paint, solvents, or oil.

Crime insurance helps protect against financial loss caused by employee dishonesty, theft, or fraud.

Let us be your resource for all things business insurance

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Why BrokerLink

Discover what sets BrokerLink apart. Our commitment to personalized service, expert advice, and comprehensive coverage options ensures you get the best protection tailored to your needs.

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Factors that affect the cost of auto body shop insurance

Insurance premiums can vary a lot between auto body shops. From the number of vehicles you repair each week to the type of services you offer, your shop’s location, and the value of your equipment, insurance companies look at many factors when setting your rates. Here are some of the biggest factors they consider:

Business location

Shops in urban areas with higher theft, vandalism, or severe weather risks often see higher premiums. This means that a Toronto shop would likely pay more in premiums than a small‑town shop due to higher vehicle theft rates.

Number of employees

More staff means more exposure to workplace injuries and potential liability claims. For example, a 15‑person repair team will generally have higher premiums than a three‑person auto repair business.

Annual revenue

The more revenue you bring in, the higher your potential liability exposure, which means higher premiums to compensate. So, for example, a high‑volume collision centre processing dozens of repairs every week would likely pay more than a small specialty shop.

Shop size and property value

Larger auto body repair shops with higher‑value buildings, equipment, and inventory typically need more coverage, and that can increase premiums. For instance, a multi‑bay facility with two paint booths will likely have higher property replacement costs than a single‑stall shop.

Type of services offered

Paint booths, welding, frame‑straightening, and mobile repair units can all increase your risk profile due to fire hazards, equipment costs, or on‑site liability. So, a shop offering on‑location repairs with a mobile spray booth may have higher coverage needs than a shop focused only on minor in‑house repairs.

Claims history

A clean claims record can help lower your premiums, whereas making frequent or costly insurance claims will generally raise your rates.

Tips to help you save on auto body shop insurance costs

Paying less for insurance doesn’t have to mean taking bigger risks. By tailoring your coverage smartly, you can protect your shop’s essentials and still avoid overspending. Here are some practical ways auto body shop owners can start saving on their insurance premiums today:

Bundle your policies (e.g., commercial property and commercial auto) for multi‑policy discounts
Increase your deductible(s)
Tell your provider if you have invested in fire prevention systems, improved ventilation, or employee safety training
Adjust your coverage limits based on your shop’s size, services, and risk profile, so you are not paying for more than you need
Protect your assets by installing security systems, lockable tool cabinets, and secure fencing to reduce theft risk
Maintain a clean claims history
Review coverage annually so your policy reflects your current business needs, and remove coverage you no longer need
Work with an insurance broker to help you compare rates

For more ways to help you save on insurance, contact BrokerLink.

Contact BrokerLink today

Are you looking for auto body shop insurance that protects your business without denting your budget? Contact BrokerLink today. Whether you run a single-bay repair shop or a multi-location collision centre, we’ll build you a tailored and affordable policy that protects every part of your operation.

You can call, email, or visit us in person at any one of our locations throughout Canada. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool, which can provide you with a competitive auto body shop insurance quote online in minutes.

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Auto body shop insurance FAQs

Have questions? Our FAQ section has the answers you're looking for. Find helpful information to guide you through your options.

Is auto body shop insurance mandatory in Canada?

Not federally, no. However, even if it’s not the law, some customers, lenders, and licensing or regulatory authorities may not let you start repairing vehicles without it. Be sure to check the requirements for your province or municipality.

How much does auto body shop insurance cost in Canada?

It depends on your shop’s size, location, services, revenue, and coverage limits. Small shops may pay a few thousand annually, while larger operations with multiple bays and services may pay more.

Can I still get an auto body shop insurance policy if I have a history of previous claims?

Absolutely. You might pay more, but a good broker can help you find the right insurance company that works with high-risk businesses and give you tips to bring those premiums back down over time.

Is equipment damage included in auto body shop insurance?

It can be, as long as you have equipment breakdown coverage or commercial property insurance.

Do I need separate coverage for mobile dent and repair?

Yes. Mobile services have different risks, especially while working at customer locations, so your policy should specifically include coverage tailored for mobile repair.

Do I need my auto body technician/collision shop certification to apply for auto body shop insurance?

Most likely. Depending on where you live, certification may be required by law to operate and is often necessary for licensing. Even if it’s not mandatory where you are, many insurance providers prefer or require it before they will insure your shop.

Is auto body shop insurance mandatory in Canada?

Is equipment damage included in auto body shop insurance?

It can be, as long as you have equipment breakdown coverage or commercial property insurance.

How much does auto body shop insurance cost in Canada?

It depends on your shop’s size, location, services, revenue, and coverage limits. Small shops may pay a few thousand annually, while larger operations with multiple bays and services may pay more.

Do I need separate coverage for mobile dent and repair?

Yes. Mobile services have different risks, especially while working at customer locations, so your policy should specifically include coverage tailored for mobile repair.

Can I still get an auto body shop insurance policy if I have a history of previous claims?

Absolutely. You might pay more, but a good broker can help you find the right insurance company that works with high-risk businesses and give you tips to bring those premiums back down over time.

Do I need my auto body technician/collision shop certification to apply for auto body shop insurance?

Vehicle Insurance

Property Insurance

Other Insurance

Auto Body Shop Insurance

What is auto body shop insurance?

Who we help

Who needs auto body shop insurance?

Why do you need auto repair shop insurance?

Types of coverage for auto body shops in Canada

Commercial general liability insurance

Garage keepers' liability insurance

Commercial auto insurance

Commercial property insurance

Tools and equipment insurance

Equipment breakdown insurance

Cyber insurance

Pollution liability insurance

Crime insurance

Commercial general liability insurance

Garage keepers' liability insurance

Commercial auto insurance

Commercial property insurance

Tools and equipment insurance

Equipment breakdown insurance

Cyber insurance

Pollution liability insurance

Crime insurance

Why BrokerLink

Our reviews

Greg Silver

Andy Rohansingh

Ian Roome

Clara Furlano

Joyce Kivuyo-Kisamo

Terry Mason

Sandi G

DANI L

Anne Langevin

Peter Ayo

Chris Gelowitz

Digital Evolution

renee king

Andrea Case

Dan Hayes

Rana Najar

Mark Houston

Katherine Bedea

Jessie hansra

Ifedapo Adeniyi

David Ford

Michelle Hawgood

Trevor Hildebrand

Morgan Adekeye

Tyler Frisby

Steven Melowsky

Steve Payne

Matt & Sav Weetman

Brooklyn Seweryn

Craig Gillis

Cheryl Trush

Jinene Shinnicks

Geoff Aiken

Tony Hynes

Christine Fedrau

amanda

Lori Coffey

Our numbers speak for themselves

Factors that affect the cost of auto body shop insurance

Business location

Number of employees

Annual revenue

Shop size and property value

Type of services offered

Claims history

Tips to help you save on auto body shop insurance costs

Contact BrokerLink today

Resources

Auto body shop insurance FAQs

Other products