Insurance for Tire Dealers 

Tire dealerships face unique risks beyond a standard retail shop. You handle heavy equipment, customer vehicles, and flammable materials — plus you often perform installations, alignments, or repairs. Specialized insurance ensures protection against property damage, customer injuries, employee accidents, and liability from service work.

Yes. At AutoRisk we specialize in Dealer Package Policies that consolidate all your necessary coverages under one streamlined program. This makes it easier to manage renewals, billing, and claims—and may reduce your total premium.

Common coverages include:

• Garage Liability Insurance – Covers bodily injury or property damage resulting from your operations, such as a customer slip-and-fall or damage during service.

• Garage-keepers Insurance – Covers customer vehicles left in your care while being serviced or stored.

• Commercial Property Insurance – Protects your shop, equipment, and tire inventory.

• Product Liability – Covers claims related to defective or improperly installed tires.

• Workers’ Compensation – Covers employee injuries (common in tire shops due to lifting and machinery use).

Yes. Commercial Property Insurance protects your tire stock from risks like fire, theft, or storm damage. You may also want business income coverage to protect against lost revenue if your shop has to close after a covered loss.

Garagekeepers Insurance protects customers’ vehicles that are left in your care for service, storage, or safekeeping. If a vehicle is damaged by fire, theft, vandalism, or collision while on your lot, this policy helps cover the cost.

Garage Liability Insurance covers bodily injury or property damage that may occur as a result of your dealership operations—whether from test drives, customer slip-and-falls, service or repair operations or accidents involving employee-driven vehicles, it’s a foundational policy for any auto dealership.

If the issue stems from a manufacturing defect, the tire manufacturer’s insurance usually applies. However, if the claim involves improper installation, balancing, or selection, your product liability and garage liability policies may apply.

Yes. If you operate service trucks, you’ll need commercial auto coverage plus possibly on-hook coverage (for vehicles being towed) and extended garage liability to protect against accidents during mobile services.

Premiums are based on:

• Size of your shop and annual revenue

• Value of tire inventory and equipment

• Services offered (sales only vs. installation/repairs)

• Employee count and payroll

• Claims history

• Safety measures in place

Some strategies include:

• Installing fire suppression and proper storage for tires

• Training employees on safe lifting and equipment use

• Keeping the shop clean and free of hazards

• Using written service agreements with customers

• Maintaining a strong claims history

See our PDF on OSHA – Click Here