Auto repair shop insurance is essential protection for every car or motorcycle repair shop owner. Many repair shop owners think that major risks are “likely not going to happen,” when in reality, incidents such as fires, compressor explosions, damage to customer vehicles, and even lawsuits due to mechanical errors are all very common. This is where having the right, comprehensive, and reliable auto repair shop insurance becomes crucial.
Choosing garage insurance isn’t easy. There are many insurance products on the market, but not all of them are suitable for your garage’s needs. This is where an official, OJK-registered insurance broker like L&G Insurance Broker is crucial. L&G helps you choose the best product, provides claims assistance, ensures the policy meets your workshop’s business risk needs, and protects you from significant losses due to poor policy selection.
If you would like to discuss further about workshop insurance or are confused about determining the most ideal product, you can have a free consultation with L&G Insurance Broker via: WhatsApp 0811-850-7773 or email halo@lngrisk.co.id.
This article will help you understand how to choose the right garage insurance, what important factors to consider, and how to ensure your garage coverage is truly safe, legal, and reliable when making a claim.
Why Should Workshops Use Insurance?
The repair shop business carries a unique and high risk profile. Unlike a regular shop, a repair shop deals directly with flammable materials, machinery, heavy equipment, and customer property. This means that the potential for loss extends not only to the business owner but also to the customers who store their vehicles.
Some reasons why workshops MUST have insurance:
- Very High Fire Risk
The use of oil, gasoline, thinner, electricity, and compressors makes workshops highly susceptible to fire. Many workshop fires are caused by short circuits or human error.
- Customer Vehicles Are Your Responsibility
If damage, loss, or fire occurs in a workshop, the business owner could face legal action. The costs could reach hundreds of millions of rupiah.
- Risk of Mechanical Error (Professional Liability)
Incorrectly installing spare parts or making workmanship errors can cause vehicle damage or cause accidents on the road.
- Risk of Theft and Damage
Workshops that are busy with people coming and going are very vulnerable to theft of spare parts, tools, and even customers’ motorbikes.
- Other Unforeseen Events
Strong winds damaging roofs, flooding, and other force majeure events can shut down operations and harm businesses.
Therefore, insurance is no longer just optional, but mandatory protection to keep your business viable, stable, and safe from major losses. With the help of a licensed broker like L&G Insurance Broker, you’ll get the right policy, rather than simply purchasing the wrong insurance product that can’t be claimed.
Types of Insurance That Are Important for Workshops
To protect your workshop comprehensively, here are some insurances that are generally required:
- Property All Risks (PAR) / Industrial All Risks (IAR)
Protecting workshop buildings, machines, work tools, compressors, and oil stocks from the risks of:
- fire
- explosion
- falling objects
- damage due to extreme weather
- other physical damage
- Public Liability Insurance
It is essential for legal protection when:
- customer slipped in the workshop area
- customer vehicle damage occurred at the location
- there is an incident that results in injury or financial loss to a third party
- Garage Keeper’s Liability / Bailee Liability
Protects against damage to customer vehicles while under the supervision of the workshop.
- Workers’ Compensation / JKK BPJS Employment
Workshop employees are vulnerable to work-related injuries. This insurance covers medical expenses and compensation.
- Machinery Breakdown Insurance
Especially for critical machines such as:
- air compressor
- lift mobil
- engine tune up
- dyno test
- automatic equipment
If the equipment breaks down, repair costs can be very expensive.
- Electronic Equipment Insurance (EEI)
Protects electronic devices such as ECU scanners, workshop computers, diagnostic tools, and others.
- Fidelity Guarantee
Protects against the risk of internal fraud such as theft of spare parts or cash manipulation by employees.
All these types of protection can be combined into one complete package through L&G Insurance Broker, who will help you choose the most efficient and appropriate product for your needs.
Important Factors When Choosing Workshop Insurance
Not all insurance policies are the same. The differences can be significant, particularly in terms of clauses, exclusions, and claims processes.
- Ensure the Product Matches the Workshop’s Real Risks
Don’t choose an inappropriate product, such as just fire insurance. Workshops carry a high liability risk, so ensure you have comprehensive coverage.
- Pay attention to the insured value (Sum Insured)
Ensure the value of the customer’s building, equipment, and vehicles is calculated correctly. If underinsured, the insurance company may pay out very little when claiming.
- Check Additional Clauses (Extensions)
For workshops, important extensions such as:
- SRCC (riots & civil commotion)
- explosion clause
- electrical short circuit
- spontaneous combustion
- professional liability
- tools & equipment
Often ignored, even though it is mandatory.
- Choose a Financially Strong Insurance Company
Use insurance that has a good rating and is recognized. A trusted broker will provide recommendations.
- Use an Official Insurance Broker Registered with the OJK
This is the key. Brokers like L&G Insurance Broker work not for the insurance company, but for you as the business owner.
Benefits of using a broker:
- Get a free risk analysis
- Products tailored to workshop needs
- Claims assistance from A–Z
- There are no additional fees (the broker is paid by the insurance company, not you)
- Prevents you from buying the wrong policy
In an industry as detailed as insurance, choosing a reputable broker is the most important step to ensuring your coverage actually works.
Tips to Ensure Your Workshop Insurance is Truly Reliable
Here’s a handy checklist to help you make the right choice:
✔ Make sure the broker or agent is registered with the OJK
Check directly on the OJK website to ensure legality.
✔ Ask for an explanation of the clause in plain language
Professional brokers are able to explain things simply, without confusing you.
✔ Prioritize liability protection
Because customer vehicle damage is often the largest source of claims.
✔ Don’t choose based on price alone
Cheap premiums often mean weak coverage or too many exclusions.
✔ Request a risk value estimation simulation
Brokers must be able to explain the potential losses if they do not have insurance.
✔ Ensure there is a claims assistance service
This is the main difference between an agent and a broker.
Agents sell police.
The broker handles the claim until it is completed.
✔ Review the policy every year
Workshop risks change following equipment developments, new investments, or the addition of services (body repair, car salon, tuning, etc.).
By following this checklist, you can ensure that your garage insurance is truly trustworthy and not just a formality.
Conclusion
Auto repair shop insurance isn’t just a formality, but a real necessity for every car or motorcycle repair shop owner. Workshop risks are diverse, ranging from fires and equipment explosions, damage to customer vehicles, employee injuries, and lawsuits that can reach hundreds of millions of rupiah. All of these can bring your business to a standstill in an instant.
Therefore, choosing reliable workshop insurance is a strategic step to ensure business security, stability, and continued growth. However, choosing the right policy is not easy. Many workshop owners end up purchasing the wrong product, lacking complete coverage, or failing to claim it due to a lack of understanding of the technical terms.
This is where L&G Insurance Broker, an OJK-registered insurance broker, comes in. L&G helps you:
- identify the overall risks of the workshop business
- choose the best insurance products from many insurance companies
- ensure the policy really suits your needs
- assisting the claims process professionally without any hassle
- giving you long-term business peace of mind
If you are serious about protecting your workshop from major risks, now is the time to consult.
📞 Free Consultation with L&G Insurance Broker through:
Whatsapp: 0811-850-7773
Email: halo@lngrisk.co.id
