Last Updated: February 22, 2024, 11:12 am by TRUiC Team

Mobile Oil Change Business Insurance

Getting business insurance for your mobile oil change business is crucial; this is because you will need to protect your business’s assets against a variety of risks that could reasonably occur, such as negligence claims, accidental property damage, and indemnity requests. 

Business insurance can also be a legal requirement (depending on your state) if your business chooses to hire employees. 

We’ll help you find the most personalized and affordable coverage for your unique business.

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Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Mobile Oil Change

General liability insurance is — generally speaking — one of the most important insurance policies for mobile oil change businesses. 

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

Having said that, it is important to keep in mind that you will likely be required to purchase additional coverage in order to holistically protect your business from all foreseeable risks.

Such coverage includes: 

  • Workers’ compensation insurance — Will protect your business against liability that arises as a result of an employment law-related dispute (e.g., wrongful termination claim, etc.). 
  • Errors and omissions insurance — Will protect your business against liability that arises due to a negligent omission or act. 
  • Commercial auto insurance — Will protect your business in the event that you or an employee gets into a traffic accident during working hours. 
  • Commercial property insurance — Will cover the cost of replacing your business’s equipment in the event of damage or theft.  

You will also need to find the right business insurer for your unique needs.

As a small business owner in 2024, there are two different types available: 

  1. Online insurers (recommended) — Includes Tivly, Next Insurance, and a variety of online providers that use AI in order to offer personalized coverage.
  2. Brick and mortar insurers — Includes Nationwide, The Hartford, and a plethora of other eminent insurers that use insurance agents in order to offer coverage. 

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Cost of General Liability Insurance

On average, mobile oil change shops in America spend between $450 - $1,000 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a mobile oil change to other professional industries using the graph below.

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.

A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

Graph showing average price of general liability insurance prices per industry

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Find the Best Rate

Discover the best coverage at the lowest rate in our affordable business insurance review.

Common Situations That General Liability Insurance May Cover for a Mobile Oil Change

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Example 1: As a customer walks around his vehicle while you change the oil, he trips over your toolbox, breaks an arm in the resulting fall, and demands your business pay for his medical treatment. General liability insurance would cover his medical bills.

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Example 2: During an oil change, you accidentally spill oil over a customer’s open laptop bag — ruining her expensive laptop. She asks you to buy her a replacement. General liability insurance would cover the cost of replacing the customer’s damaged property.

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Example 3: A competitor sues you for libel. While you disagree with the accusation, you want to hire an attorney as soon as possible. General liability insurance would pay for your legal fees and any required settlement.

Other Types of Coverage Mobile Oil Changes Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:

Commercial Auto Insurance

Any vehicle you use primarily for your mobile oil change business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured but also sufficient protection for any business property you carry in your vehicle.

Professional Liability Insurance

While you strive to deliver the level of service and dependability your customers expect, there’s always a chance someone could claim your advice or professional service caused them harm. If a customer sues your business for negligence, professional liability insurance would cover your legal fees and any required settlement.

Workers’ Compensation Insurance

If you have any employees, most states will require you to carry workers’ compensation insurance for your part-time and full-time workers. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a workplace accident.

Commercial Umbrella Insurance

While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your mobile oil change:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Maintain your corporate veil.

Mobile Oil Change Business Insurance FAQ

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

Yes, you do. You will likely be legally required to purchase a commercial auto insurance policy (since your business will need to lease or purchase a company vehicle in order to operate). 

Even if this wasn’t the case, getting business insurance before you start operating is generally recommended as it is the safest way of ensuring that you will not have to face a lawsuit whilst not being insured. 

Not necessarily. Certain exceptions may be written directly into your mobile oil change insurance policy, and some perils may be entirely uninsurable.

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.