What general liability covers when you work out of a van
General liability insurance covers damage or injury you cause to someone else's property or body while doing your job. For a mobile mechanic in California, that means if you accidentally drop a transmission on a customer's foot, spill oil on their driveway, or damage their car while it's in your care, your policy pays for medical bills, repairs, and legal costs — not your own.
This is different from workers' compensation (which covers your own injuries) and garage liability (which covers damage that happens inside a fixed shop). As a sole proprietor working out of a van, you need general liability because you're working on other people's property and vehicles, and California law does not require it, but most customers and many neighborhoods will.
The policy typically covers bodily injury, property damage, and personal injury (like if you're accused of damaging someone's reputation). It also covers your legal defense if someone sues, even if the claim turns out to be false.
Key Takeaways
- General liability insurance for mobile mechanics covers damage you cause to a customer's property or body, but not damage to your own tools or vehicle.
- California does not legally require general liability for sole proprietors, but most customers, property owners, and neighborhood associations will demand proof before letting you work.
- Premiums for mobile mechanics typically range based on your annual revenue, the types of work you do, and your claims history, and you should get quotes from at least three insurers.
- You can buy a general liability policy alone or bundle it with commercial auto insurance (which covers your work vehicle) for a lower total cost.
- Your policy should include coverage for tools and equipment left at job sites, and you should review limits annually as your business grows.
Why customers and property owners require it
Most residential customers will not let you work on their property without proof of insurance. Homeowners' insurance policies typically exclude damage caused by contractors, so if you damage their driveway or their car, the homeowner has no coverage — they can only sue you. A general liability policy protects them by ensuring there is money to pay the claim.
Apartment complexes, HOAs, and commercial properties are even stricter. Many require you to name them as an additional insured on your policy, which means the insurance company will defend them too if something goes wrong. You can add this endorsement to most policies for a small fee, and it takes about a week to process.
Even if a customer does not ask, carrying insurance protects your business. One accident — a dropped engine block, a spilled battery, a scratch during a test drive — can cost thousands in repairs or medical bills. Without insurance, that comes directly out of your pocket and can force you to close.
What California sole proprietors actually need to know about coverage limits
Coverage limits are the maximum the insurance company will pay for one claim or all claims in a year. For mobile mechanics, standard limits are $1 million per occurrence and $2 million aggregate (total per year). Some customers ask for higher limits — $2 million per occurrence — but that is less common for solo operators.
The limit you choose depends on the value of the vehicles and property you work on. If you service high-end cars or work on customer property worth hundreds of thousands of dollars, higher limits make sense. If you mostly do routine maintenance on standard vehicles, $1 million is usually enough to satisfy customers and protect yourself.
Do not confuse your general liability limit with your commercial auto limit. If you cause an accident while driving to a job, your commercial auto policy covers it, not your general liability. Many insurers offer a package that includes both, which is cheaper than buying them separately.
How to get quotes and what to compare
Call or visit websites for at least three insurers that write commercial policies in California. You will need to provide your business name, the types of work you do (engine repair, brake service, diagnostics, and so on), your estimated annual revenue, and whether you have had any claims or violations in the past five years.
When you get quotes, compare the same coverage limits across all three. A $1 million/$2 million policy from one company should cost less or more than the same limits from another — that difference tells you which insurer is cheaper for your profile. Also ask whether the quote includes the additional insured endorsement and whether there are discounts for bundling with commercial auto.
Some insurers offer discounts for completing a safety course, maintaining a clean driving record, or having been in business for more than two years. Ask about all of these. The difference between the highest and lowest quote for the same coverage can be hundreds of dollars per year.
What your policy does not cover
General liability does not cover damage to your own tools, equipment, or vehicle. If you drop your socket set or your van gets hit while parked at a job site, that is not covered. You need commercial property insurance for your tools and commercial auto insurance for your vehicle.
It also does not cover damage that happens because you did the work wrong — like if you install a part incorrectly and it fails a week later. That is a warranty or workmanship claim, and it is typically excluded. Some insurers offer an optional products liability endorsement that covers parts you sell and install, but it costs extra and has limits.
General liability also does not cover intentional acts, criminal activity, or damage from pollution or environmental contamination. If you spill oil and it seeps into the soil, that may fall under pollution exclusions depending on the policy language.
Bundling with commercial auto and tools coverage
Most insurers that write general liability for contractors also write commercial auto and commercial property insurance. Buying all three from the same company usually costs 15 to 25 percent less than buying them separately, and it simplifies billing and claims.
A typical bundle for a mobile mechanic includes general liability ($1 million/$2 million), commercial auto (covering your work van), and commercial property (covering tools and equipment in the van). Some policies also include hired and non-owned auto coverage, which protects you if you borrow a customer's car for a test drive or rent a vehicle for a job.
When you bundle, make sure the property coverage limit is high enough for your tools. If you carry $15,000 in equipment, your property limit should be at least that much. Review this annually as you add tools or equipment.
Reviewing and updating your policy as your business grows
Once you have a policy, review it every year or whenever your business changes. If you hire an employee, you will need workers' compensation insurance (California requires it once you have even one employee). If you start doing more complex work or working on higher-value vehicles, you may need higher liability limits.
Tell your insurer about any changes in revenue, the types of work you do, or the areas where you work. Some insurers charge more if you work in certain neighborhoods or on certain vehicle types. Keeping your insurer informed prevents them from denying a claim because you did not disclose something.
If you have a claim, report it to your insurer as soon as possible, even if you are not sure whether it will result in a lawsuit. The insurer will assign a claims adjuster and handle communication with the injured party or their lawyer. Do not admit fault or agree to pay anything without talking to your insurer first.
Frequently Asked Questions
Do I need general liability if I only work on my own vehicles or friends' cars for free?
If you are not charging money, you are not running a business, and general liability is not required. However, if you ever charge even one customer, you need coverage before that first job. Operating without insurance when you are running a business exposes you to personal liability — a lawsuit could take your personal assets.
What happens if a customer gets hurt and I do not have insurance?
The customer can sue you personally. If they win, the court can order you to pay medical bills, lost wages, and pain and suffering out of your own bank account, paycheck, or assets. In California, they can also go after your personal vehicle and home in some cases. Insurance protects your personal finances.
Can I get general liability if I have had a claim or accident before?
Yes, but it will likely cost more. Insurers view prior claims as a sign of higher risk. Get quotes from multiple companies — some specialize in contractors with claims history and may offer better rates than others. Be honest about your history; lying on an process can give the insurer grounds to deny a claim later.
Do I need to name the customer as an additional insured before I start work?
It depends on the customer. Residential customers rarely ask. Commercial properties, HOAs, and apartment complexes usually require it. Ask before you start — if they do, contact your insurer and request the endorsement. It typically takes a week and costs $25 to $50 per customer.
What if I work in multiple California counties?
Your policy covers you statewide as long as you disclose all the areas where you work. Some insurers charge more for certain regions (urban areas with higher accident rates, for example). Tell your insurer where you primarily work and where you travel for jobs so the quote is accurate.