Why Mechanic’s E&O Coverage Is a Must-Have for Auto Care Businesses
Running an auto care business requires more than tools, talent, and a service bay. It also takes protection—protection from the unpredictable risks that come with fixing and maintaining today’s complex vehicles. One of the most overlooked, yet critical coverages for auto repair shops is Mechanic’s Errors & Omissions (E&O) insurance.
So, what is Mechanic’s E&O, and why does your business need it?
The Hidden Risk in Every Repair
Even the most experienced technicians can make honest mistakes. Whether it’s a faulty installation, a misdiagnosis, or an overlooked detail during a routine service, these errors can lead to costly consequences. Suppose a brake line isn’t properly reconnected or an oil change goes wrong, leading to engine damage—your shop could be held financially responsible.
Mechanic’s E&O insurance steps in where general liability stops. While general liability covers bodily injury or property damage caused by your operations, it doesn’t protect you from the financial impact of professional mistakes or omissions. That’s exactly where E&O coverage becomes essential.
What Mechanic’s E&O Covers
Mechanic’s E&O helps cover:
- Repairs gone wrong – If a service error leads to further damage, E&O helps pay for the resulting repairs.
- Misdiagnosis or oversight – Miss a failing component or recommend an unnecessary fix? E&O has your back.
- Customer complaints or lawsuits – It can provide coverage for legal defense and settlements if you’re sued over a job you completed.
Without this protection, a single mistake could put your business—and your reputation—on the line.
Why Pekin Insurance a good Fit
Fortunately, you don’t have to piece together your coverage with multiple policies. Pekin Insurance offers a Businessowners Policy (BOP) designed specifically for auto care businesses. This program doesn’t just include Mechanic’s E&O—it bundles in other key coverages that address the real risks you face every day.
Here’s some of what you get with Pekin Insurance’s Autocare Services Businessowners Policy:
- Mechanic’s E&O Coverage – To provide extra liability protection for a defective product sold by you or completed work you performed in the course of your garage operations, after the vehicle has been returned to your customer.
- Garagekeepers Coverage – Protects your customers’ vehicles while in your care, custody, or control.
- Employee Tools Coverage – Provides protection for portable tools owned by your employees that they rely on while used in your garage operations.
- Property & Liability Coverage – Covers your building, business personal property, and day-to-day liability exposures.
- Business Income Coverage – Keeps cash flow going if you’re forced to shut down temporarily after a covered loss.