Bundles of tire are kept on the shelf in the warehouse.

What Types of Insurance Do You Need to Run a Tire Shop


Managing a tire shop or dealership comes with its own risks and exposures. As a tire shop owner or manager, you must protect your business financial losses or even closure by carrying a bit of financial security—namely, insurance coverage.

Not only is insurance the best way to ensure your tire shop is protected against risks that can cause significant financial losses, but it’s easier than ever to find. But what types of insurance do you need for a tire shop? Take a look at the essential insurance coverages you should consider.

General Liability Insurance for Tire Shops

Tire shops or dealerships are liable for any injuries that may occur on the premises. For example, if a customer slips and falls while in your store, you can be held liable for their medical expenses. According to the National Safety Council, falls are one of the leading causes of workplace injuries—making them a point of emphasis for businesses like yours.

General liability insurance protects your business against these claims by covering medical expenses and legal costs in the event of a lawsuit.

Property Insurance

Property insurance covers your business against damage to your property, the building, inventory, equipment, and more. The tire shop can suffer damage fire, theft, or vandalism, with the National Fire Protection Association noting that fire departments responded to an average of 353,100 home structure fires per year between 2014-2018 alone. With property insurance, you can recover the cost of repair or replacement, ensuring your business continues to run smoothly even in the face of a catastrophic loss.

Workers’ Compensation for Tire Shop Mechanics and Staff

Workers’ comp coverage is critical if you have employees working in your tire shop. Remember, workers’ comp is likely required under the law, and even if it isn’t, it’s the right thing to do.

Workers’ comp insurance covers your employees’ medical expenses and lost wages if they are injured while on the job, shielding the business from liability. According to the Bureau of Labor Statistics, there were 2.8 million nonfatal workplace injuries and illnesses in the private sector just 2019, making this sort of coverage more important than ever.

Commercial Auto Insurance

If you own a fleet of vehicles used for deliveries or service calls, you need commercial auto insurance. Commercial auto insurance protects your business against damage or injuries caused by your company vehicles. With the National Highway Traffic Safety Administration reporting 36,096 fatalities in motor vehicle traffic crashes in 2019 alone, you cannot pass up this coverage.

With commercial auto insurance, you can protect your business against liability claims that can arise from auto accidents. Plus, employees who use their vehicles for work should convert to a commercial policy to protect themselves.

Contact Liberty Woodland Hills for Help With Tire Shop Insurance

As a tire shop owner or manager, you must protect your business from unforeseen events that can lead to financial losses and insurance is a key cog in this machine. Contact Liberty Woodland Hills to learn more about business insurance for food and beverage companies and how we can help protect your tire shop. We’re happy to review your current coverage, seek out new quotes, and answer any questions you may have.

Looking for Insurance for Your Tire Dealership? Request a Free Quote.

See how Liberty can provide you and your business with great coverage and great rates.

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