What Insurance is Needed for RV Repair Businesses?
Running an RV repair business comes with unique risks. Whether you’re fixing mechanical issues, performing bodywork, or handling electrical repairs, you are responsible for valuable vehicles that often serve as homes-on-wheels for their owners.
A mistake or unforeseen accident could lead to costly claims, making the right insurance coverage key to financially protecting your RV repair business.
Let’s take a look at recreational vehicle (RV) insurance and why it’s important to have the right coverage for your specific needs.
Why business liability insurance is needed for a RV repair businesses
RVs are often large and can have custom modifications. They can also contain the owners’ personal belongings. Without proper insurance, you could face financial losses due to property damage and liability claims from customers or suppliers.
Here are some specific risks your business might encounter:
- Accidental damage to an RV in your care: If an RV is damaged while in your shop, you may be held liable.
- Property damage or injuries on your premises: A customer slipping on an oil spill could result in a lawsuit.
- Theft or vandalism: Expensive tools, RV parts, and even customer vehicles can be prime targets.
- Errors in service: A mistake in repairing an RV could lead to a lawsuit or costly claims.
General liability insurance
General liability insurance covers injuries or property damage that occur on your business premises. If a customer or supplier trips over a toolbox and gets injured, or if a piece of equipment falls and damages their RV, this policy helps cover legal fees and medical bills.
Key coverage areas:
- Third-party bodily injury
- Third-party property damage
- Legal defense costs
Errors and omissions (E&O) insurance
Also known as professional liability insurance, E&O insurance covers mistakes made during repairs. If a repair job is not completed correctly and results in further damage or an accident, you could face legal claims. This coverage helps pay for legal fees, settlements, and customer damages.
Garage keepers’ insurance
Garage keepers insurance is essential because it specifically covers damage to customer vehicles like RVs while they are in your care, custody, or control. If an RV is stolen, vandalized, or damaged due to fire, severe weather, or an accident while in your shop, this policy helps cover repair or replacement costs.
Why it’s important: Garage keepers insurance directly protects customer vehicles left in your possession.
Commercial property insurance
Your RV repair shop likely contains expensive tools, diagnostic equipment, lifts, and parts inventory. Commercial property insurance protects your building, equipment, and tools against damage from fire, theft, vandalism, or natural disasters.
What it covers:
- Repair or replacement of business property
- Coverage for tools and equipment
- Protection against theft and vandalism
Commercial auto insurance
If your RV business owns service vehicles used for mobile repairs, towing, or picking up parts, you’ll need commercial auto insurance. This policy covers accidents involving business-owned vehicles, including liability for injuries and property damage.
Business interruption insurance
If an unexpected event—such as a fire—forces you to temporarily close your shop, business interruption insurance helps cover lost income and operating expenses until you can reopen.
What it covers:
- Lost revenue during downtime
- Lease payments and employee wages
- Temporary relocation expenses
Pollution liability insurance
This type of insurance helps cover costs to clean up pollution caused by your recreational vehicle repair work. Pollution liability insurance can help pay for clean-up costs, civil fines, and emergency response expenses.
Cyber liability insurance
Many repair shops now use digital systems for invoicing, scheduling, and customer data management. If a cyberattack compromises customer information or business data, cyber liability insurance can help cover costs related to data breaches, legal fees, and notification expenses.
Tools and equipment insurance
It replaces, or repairs damaged, stolen, or lost equipment and tools, accessories, or other property that you use in your work as a recreation vehicle repair business.
Anything valued at less than $1,500 is considered a tool and anything above that limit is considered equipment.
Commercial umbrella insurance
You may want to consider commercial umbrella insurance for your RV business. This type of insurance addresses gaps in your business liability coverage. It’s used when the primary liability coverage, for example on your commercial general liability insurance or your errors and omissions insurance, has reached its coverage limit.
It’s important to know that umbrella insurance applies only to expenses related to liability issues, such as legal fees, court fees, and legal settlements.
How to choose the right RV insurance coverage
Choosing the right insurance for your RV repair business depends on several factors, including:
- The size of your shop and number of employees
- Whether you offer mobile repair services
- The value of customer vehicles you typically handle
- Your location and specific risks (e.g., flood-prone areas)
To ensure you get the best coverage:
- Assess Your Risks: Identify potential liabilities specific to your business.
- Work with an Insurance Broker: An experienced broker can help tailor a policy that fits your needs.
- Compare Quotes: Shop around for competitive rates while ensuring adequate coverage.
- Review Annually: As your business grows, update your policy to reflect new risks and assets.
Final thoughts
An RV repair business involves high-value vehicles, technical expertise, and significant risks. The right insurance coverage helps protect you from financial losses, legal disputes, and operational disruptions.
If you're unsure about which policies are best for your RV repair business, consult a Western Financial Group business insurance expert who can assess your needs and provide customized solutions. A well-protected business is a successful business!
