Industry overview
Repair and maintenance businesses take customers' property into their care to fix it, which puts that property at the center of their risk. If an item is damaged in the shop or a repair later fails, the business can face a claim.
These firms also work with tools, equipment, and sometimes hazardous materials, and may travel to customer sites. Insurance for the sector commonly addresses customer-property exposure, workmanship-related claims, and protection for valuable tools.
Common business types
- Equipment and machinery repair shops
- Appliance and electronics repair
- HVAC and mechanical service firms
- Small-engine and tool repair
- Computer and device repair
- General maintenance and handyman services
Common risks
Customer property in care
Items left for repair can be damaged, lost, or stolen while in the shop's custody.
Faulty workmanship claims
A repair that fails can lead to claims of resulting damage or injury.
Tools and equipment loss
Valuable tools can be stolen or damaged, on-site or in transit.
On-site work exposure
Service calls at customer locations create property-damage and injury risk.
Employee injuries
Hands-on work with tools and equipment creates injury exposure.
Hazardous materials
Solvents, lubricants, and parts can create handling and disposal exposure.
Common insurance requirements
Repair and maintenance firms commonly need general liability for premises and service work, and care-custody-and-control considerations matter when handling customer property. Firms that travel need commercial auto, those with valuable tools insure them under inland marine, and operations with employees carry workers compensation.
Recommended coverages
Core Coverage
Operational Coverage
Employee-Related Coverage
How much does it cost?
There is no single price for repair & maintenance insurance — the total depends on which of these coverages you carry and the specifics of your business. As a rough guide, here are general national averages for the coverages this industry commonly needs.
- $500–$1,500 per year for many small businesses
- $300–$1,000 per year for many small businesses
- $1,500–$3,000 per vehicle per year
- $500–$3,000 per year, driven largely by payroll and job class codes
- $1,000–$3,000 per year for many small businesses
These are general national averages shown for comparison only — not a quote. Actual premiums vary widely with underwriting and depend on the factors above and the specifics of your business, including size, revenue, location, claims history, and the limits you choose. See how we estimate costs.
Hypothetical claim examples
Customer item damaged
A customer's equipment is damaged while in the shop. Coverage for property in care may help, depending on how the policy treats care, custody, and control.
Tools stolen
Tools are stolen from a service van. Inland marine coverage may help replace them, subject to deductibles.
On-site damage
A technician damages a customer's property during a service call. General liability may help respond, subject to terms.
Frequently asked questions
Is customer property in my shop covered?
Damage to property in your care, custody, or control can be limited or excluded under general liability, so it is important to review how your policy treats it.
Does general liability cover faulty workmanship?
Coverage for faulty workmanship is limited and varies by policy, though resulting damage may be treated differently. Review terms with your agent.
Are my tools covered away from the shop?
Tools that travel are commonly covered under inland marine, which addresses property away from a fixed location.
Do mobile repair businesses need commercial auto?
Yes. Firms that drive to customer sites commonly need commercial auto, since personal policies typically exclude business use.
Is a BOP suitable for a repair shop?
A BOP fits many shop-based repair businesses by bundling liability and property, though some may need additional coverage for tools or vehicles.
How do I get a quote for my business?
Call The Southern Agency at 1-800-777-1872 or request a quote online, and an advisor can help with coverage tailored to your specific business type.
All Repair & Maintenance business types
Get covered for any of the 12 business types in this industry.