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Auto Repair

Keeping Oklahomans Moving

Insurance for Mechanics

CompSource Mutual has been protecting Oklahoma workers for more than eight decades. We can help businesses find the right coverage at a fair price due to our unmatched expertise in the auto repair industry.

Mechanics in Oklahoma face unique on-the-job risks and hazards. Get a quote for coverage that makes sense for your business. Our local team can help you understand your options.

Interested to learn more? Read on to get answers to common questions and concerns about workers’ comp in the automotive industry.

Insurance for mechanics

The automotive trade requires significant hands-on work, but isn’t among the most dangerous industries. Compared to the construction industry, mechanics see three-quarters fewer workplace fatalities, and had only a 1.7% incidence rate of nonfatal injuries and illnesses involving days away from work.

However, this does not mean that accidents do not occur. Mechanics work with small and large tools, heavy machinery, metal parts with sharp edges, and other dangerous objects. They may also handle potentially hazardous chemicals, such as asbestos brake pads or harsh solvents, which can cause health problems if inhaled or touched.

Known risks in Auto Repair​:
  • Slips, trips, and falls
  • Exposure to chemicals
  • Heavy equipment strikes
  • Motor vehicle accidents

Injuries or illnesses that occur while an employee is working are typically covered by a work compensation policy. This type of insurance can help both the employer and the employee by providing financial security and compensation in the event of a workplace injury or illness. The employee can be reimbursed for their medical expenses and days of missed work, while the employer can rest assured knowing that their employee is being taken care of.

Worker classification for mechanics

Due to the on-site nature of an auto mechanic’s work, mechanics are typically categorized as employees of the auto shop or dealership that they work for, which means that they should be protected by their employer’s workers’ compensation policy. In 2021, auto repair and maintenance companies had the largest share of mechanic employees, at 24.31% of the market, with dealerships (19.87%) and auto part shops (9.27%) in second and third place.

One of the most important factors in classifying workers is whether the company controls the manner and means of creating a product or delivering a service. Typically, independent contractors have the right to call the shots on these points: they may complete their work wherever they choose; however they choose, as long as the work gets done. For example, a mechanic working as an independent contractor may rent a garage from a larger company but use their own tools to complete repair work. Or, they may work on a specific project (e.g., fixing a particular car) and be paid for that specific work only.

In contrast, an employee has the means of their work determined by their company. The company can tell the employee where work should be completed (e.g., at the repair shop), when to show up, what cars to work on, etc. In return, the employer provides more stability and security to an employee than to an independent contractor, who may be terminated with few or no protections or notice. Employees are entitled to workers’ compensation insurance—a critical part of working a physical labor job. If an employee of the company gets injured while conducting any kind of work activity, they are permitted to file an injury compensation claim and get financial reimbursement through their company’s workers’ compensation insurance plan. If an independent contractor gets injured on the job, they are responsible for their own medical bills.

Workers’ comp insurance for mechanics

Having workers’ compensation insurance is one of the most important things you can do for your employees. In fact, it’s mandatory for almost all business types in many states, including Oklahoma. Having insurance for mechanics is a critical part of running any auto repair shop or car dealership.

Working as a mechanic is a physical job, and it comes with unique risks. The most common causes of nonfatal workplace injuries for mechanics include:

  • Sprains, strains, and tears
  • Injuries from parts and materials
  • Being struck by objects or pieces of equipment

Because mechanics work with their hands all day and are often in uncomfortable or compromising positions while working on cars, the most common body parts that become subject to injury are the hands and back. This type of work can also easily lead to injuries from overuse.

When a mechanic sustains an injury while working, they may need to take some time off of work. Days away from work can be costly to both the employee and employer. This is where workers’ comp for employers comes in. Workers’ comp insurance for mechanics provides financial assistance to the mechanic to cover medical bills and additional compensation for missed wages. This ensures that the employee can focus on recovery, and doesn’t return to work before they are fully recovered. This, in turn, helps prevent employee turnover and fosters good morale at the company.

Why CompSource Mutual

CompSource Mutual has provided workers’ compensation insurance for mechanics and auto companies for more than 85 years. We understand the needs of Oklahomans and are here to protect your workers and offer support when you need us most. Find pages of educational and support material for mechanics and auto companies, including safety videos and tips for business owners here.

Generally, no. A typical car insurance policy only covers repairs to your vehicle if they’re related to some kind of accident. You likely won’t be covered if your engine simply has a mechanical failure or other malfunction.

Employees of any company, including mechanics, typically get some benefits as part of their employment terms. Mechanics may receive benefits including health insurance, retirement plans, paid sick days, and vacation days.

Across all industries, workers’ compensation coverage usually includes: immediate medical bills; wages for days of missed work; ongoing medical services, such as physical therapy or rehab; and funeral or burial costs, in the event of a fatality.
Workers’ compensation insurance is typically based on the payroll of the company buying it. The formula is usually the specific insurance rate multiplied by every $100 of the company’s payroll. Also factored into this formula is the employee type (i.e., the kind of work they do) and the company’s past claims history. This usually means that larger companies will pay larger premiums, because they have larger payrolls and/or more employees.
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Meet Our Safety Team

Are you committed to making your workplace safer? We’re here to make it easy for you. CompSource Mutual policyholders can get advice from our safety consultants and access personalized resources – it’s all absolutely free.

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