Running a garage in Indiana means managing real risks every single day. From customer vehicles on your lot to employee injuries and equipment damage, the liability exposures add up fast.

At Briggs Agency, Inc., we’ve helped shop owners across the state understand what garage liability insurance Indiana actually covers and where most policies fall short. This guide walks you through the coverage types you need, the gaps to watch for, and how to build protection that fits your operation.

The Three Coverage Pillars Your Indiana Shop Needs

Why General Liability Alone Isn’t Enough

General liability covers bodily injury and property damage claims that arise from your shop’s operations-a customer slips on your floor, or your equipment damages their property while it’s in your care. However, general liability explicitly excludes damage to customer vehicles under its care, custody, or control provision, which leaves your biggest exposure unprotected. Indiana Code Title 27 defines garage liability as coverage for shops that sell, lease, repair, service, deliver, test, road test, park, or store motor vehicles. The standard ISO Garage Coverage Form CA 00 05 bridges this gap by combining general liability with auto exposure in one policy, so you don’t juggle separate policies with overlapping exclusions-the garage liability form handles the vehicle-related risks that traditional general liability won’t touch.

Garage Keepers Coverage Closes the Protection Gap

Garage keepers coverage addresses the exact gap that general liability creates by covering vehicles in your care, custody, or control while they’re being repaired, serviced, or stored at your business. When a customer leaves their vehicle with you for service, storage, or a test drive, that vehicle becomes your responsibility, and damage from negligence, theft, vandalism, or weather requires protection. Three forms exist-legal liability, direct primary, and direct excess-and they offer different approaches. Legal liability pays only if you’re found negligent, while direct primary pays regardless of fault and resolves claims faster without disputes. Most Indiana shops benefit from direct primary because it simplifies customer relationships and claim resolution; if a test-drive accident damages the vehicle, direct primary covers it without finger-pointing.

Workers Compensation Protects Your Team and Your Business

Workers compensation is the third pillar and protects your employees from injuries on the job, covering medical expenses and lost wages. Indiana requires this coverage if you have employees, and it also shields you from employee lawsuits. Workplace injuries in garages occur regularly-slip-and-fall incidents, tool-related injuries, and strain injuries from repetitive tasks happen more often than many shop owners realize. Workers comp keeps both your employees and your business finances secure when accidents happen.

These three pillars work together to address the specific exposures your shop faces, and understanding how each one fills a different gap helps you build a protection strategy that actually matches your operation. The next section examines where most Indiana shops discover gaps in their coverage-and how to spot them before they become costly problems.

Common Gaps in Garage Coverage

Liability Limits That Don’t Match Your Actual Risk

Most Indiana shop owners carry minimum liability limits of $100,000 per occurrence, which sounds reasonable until a serious accident happens. A single major incident-a test-drive collision that injures multiple people, or a fire that destroys customer vehicles on your lot-can easily exceed $100,000 in liability costs. Indiana shops handling high-value vehicles or performing complex repairs need inadequate liability limits of at least $300,000 per occurrence and $1,000,000 aggregate to match the actual risk. Without adequate limits, you face personal liability for costs above your policy cap, which can wipe out your business savings and future earnings.

Tools, Equipment, and Inventory Remain Unprotected

Shop owners often assume their garage liability policy covers tools, equipment, and inventory damage. It doesn’t. Your policy protects against liability claims, not your own property losses. A theft of diagnostic equipment worth $15,000 or a fire that destroys your lifts and tools leaves you unprotected unless you add inland marine or business property coverage to your package. These gaps mean you absorb the full cost of replacing critical equipment that keeps your operation running.

Customer Disputes and Legal Claims Fall Outside Standard Coverage

Many shops overlook the exposure created by customer disputes and legal claims that fall outside traditional liability. When a customer claims your repair caused an engine failure or disputes your work quality, they may sue for the cost of repairs elsewhere or vehicle value loss. Your garage liability policy covers bodily injury and property damage, not breach of warranty or contract disputes. Products-completed operations coverage and errors and omissions insurance protect you against these claims and the legal costs that accompany them.

The Real Cost of Coverage Gaps

These three gaps-inadequate limits, unprotected property, and uninsured contract disputes-represent the most common exposures that catch shop owners off guard.

Each one stems from a different assumption about what garage liability covers, and each one can create substantial financial exposure. Identifying your specific gaps requires an honest inventory of what you own, what you store, and what services you perform.

The next section walks you through how to assess your shop’s unique risks and select coverage that actually closes these gaps instead of leaving your business exposed.

How to Choose the Right Garage Liability Policy

Inventory Your Shop’s Operations and Exposures

Start by listing exactly what you do, what you own, and what vehicles pass through your facility. If you perform road tests or customer test drives, road testing must appear explicitly in your policy-this is non-negotiable. If you store vehicles long-term, parking and storage must be listed as covered activities. If you handle high-value vehicles or complex diagnostics, your liability limits need to reflect that exposure, not minimum state requirements. Most Indiana shop owners carry $100,000 per occurrence limits, but a single multi-vehicle accident or fire generates $300,000 to $500,000 in liability costs within minutes. The ISO Garage Coverage Form CA 00 05 that most carriers use defines garage operations broadly to cover all activities necessary or incidental to running your garage, but carriers interpret this language differently. Request a detailed coverage summary from your agent that explicitly lists your shop’s activities-repair, service, storage, test drives, delivery-and confirms each one receives coverage. Vague language like “and related activities” creates risk; demand specificity instead.

Request Clear Written Explanations of Coverage

Your agent must provide a clear written explanation of what counts as covered garage operations at your specific shop. Ask your agent to explain how the policy handles test-drive accidents, what happens if a customer vehicle is damaged while parked on your lot, and whether employees who drive customer vehicles receive coverage. If an agent cannot articulate these details in writing, find a different agent. Your insurance should match your operation precisely, and that requires someone who listens to your business, not someone selling a standard package.

Compare Quotes from Multiple Carriers

Contact three to five carriers and provide identical information about your shop’s operations, vehicle volume, and services to receive apples-to-apples quotes. When reviewing quotes, compare not just premium but coverage components: Does the policy include garagekeepers coverage, which covers vehicles in your care, custody, or control while being repaired, serviced, or stored at your business? Direct primary costs more but eliminates claim disputes and protects customer relationships. Does the policy include products-completed operations coverage to protect against defective repair claims? Are tools and equipment protected under inland marine coverage, or do you need to add that separately? What are the actual liability limits per occurrence and aggregate? A carrier quoting $1,200 annually with $100,000 limits is not cheaper than one quoting $1,600 with $300,000 limits if the lower-limit policy leaves you exposed.

Work with a Local Agent Who Understands Your Shop

A good local agent asks detailed questions about your specific services, inquires about claims history, and explains gaps in standard coverage before you purchase. Your agent should take time to understand your shop’s operations and the vehicles you handle. If an agent cannot explain why you need garagekeepers coverage or what products-completed operations covers, that agent cannot protect your business effectively. At Briggs Agency, Inc., we represent multiple top-rated carriers and compare options to show you the real trade-offs between cost and protection. We work with shop owners to build policies that match their operations precisely, not generic packages that leave gaps.

Final Thoughts

Your Indiana garage faces exposures that standard business insurance simply doesn’t address. General liability excludes vehicle damage, workers compensation covers only employee injuries, and property coverage protects your building but not the vehicles in your care. Garage liability insurance Indiana combines auto exposure with general liability in one policy, eliminating the gaps that catch shop owners off guard.

Protection only works when your policy matches your actual operation. If you perform road tests, that activity must appear explicitly in your coverage. If you store vehicles long-term, parking and storage must receive listing as covered activities. If you handle high-value vehicles, your liability limits must reflect that exposure rather than minimum state requirements, and an agent who understands your shop’s specific services can show you why direct primary garagekeepers coverage costs more but eliminates claim disputes and protects customer relationships.

We at Briggs Agency, Inc. represent multiple top-rated carriers and work with shop owners across Indiana to tailor policies that match your operation. Contact us to review your current coverage, identify gaps, and build protection that actually fits your business.

The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or insurance advice. Coverage options, terms, and availability may vary. Please consult with a licensed professional for advice specific to your situation.
Artificial intelligence may have been used to generate text and images in some blog articles.

Running a garage means managing more than just vehicles and tools-you also need to protect your business from unexpected liability and property risks.

At Briggs Agency, Inc., we’ve helped countless shop owners navigate garage insurance coverage options and find policies that actually match their operations. The right coverage can be the difference between a manageable claim and a business-threatening loss.

What Coverage Types Does Your Shop Actually Need

Understanding Commercial General Liability

Garage insurance isn’t one-size-fits-all, and many shop owners discover coverage gaps only after a claim happens. Commercial general liability covers third-party bodily injury and property damage claims that arise from your operations-a customer slips in your waiting area, or an employee damages a client’s personal property. However, standard general liability policies often exclude work performed on customer vehicles, which is why garage-specific liability matters. This coverage protects you when faulty workmanship, a loose drain plug, or a misinstalled part causes damage after the vehicle leaves your shop. Making it more important than ever to have precise coverage that matches your actual exposures rather than overpaying for protection you don’t need.

Garage Keepers Liability: Protecting Vehicles in Your Care

Garage keepers liability forms the second essential layer of protection. This coverage protects customer vehicles while they remain in your care, custody, or control-whether parked in your bay, on your lot, or during a test drive. It covers fire, theft, vandalism, collision, and severe weather damage regardless of whether your shop is legally at fault. You’ll choose between direct primary coverage, which pays claims regardless of fault and speeds settlement, or legal liability coverage, which pays only if your shop is negligent and typically costs less. Direct primary is the stronger choice for most shops because it removes disputes with customer insurance companies and builds customer trust.

Business Property and Equipment Insurance

Business property and equipment insurance protects your own tools, diagnostic equipment, lifts, compressors, and building improvements. Many shop owners underestimate this exposure; a single bay fire or theft can eliminate thousands in specialized equipment. Set your coverage limits based on a current inventory of your shop’s assets, not on what you paid years ago (equipment values change). Annual policy reviews catch gaps as your services expand or equipment ages.

Moving Forward With Your Coverage Strategy

The right combination of these three coverage types creates a foundation that addresses the major risks your shop faces daily. Each layer addresses a different exposure, and gaps in any one area can leave your business vulnerable. Your next step involves evaluating your specific operation to determine which coverage options fit your situation best.

Key Factors to Consider When Selecting Garage Insurance

Size and Type of Your Operation

Your shop’s annual revenue, number of service bays, and employee count directly determine your coverage needs and premium costs. A solo operator running one bay faces vastly different exposures than a ten-person shop with multiple lifts and a parts inventory. Commercial lines premiums are rising, making it essential to right-size your coverage rather than overpay for unnecessary limits or underpay and create gaps.

Start with your actual annual revenue and payroll-most insurers base garage insurance premiums on these figures plus your claims history. A typical single-location repair shop pays between $4,000 and $10,000 annually for a complete program that includes garage liability, garage keepers, commercial property, and workers’ compensation, though this varies significantly by location, services offered, and risk profile.

Location matters considerably. If you operate in a high-density area like the Seattle metropolitan area where traffic congestion and severe weather increase collision and weather-related claims, you’ll pay higher premiums than shops in rural regions. The types of services you perform also matter enormously-a tire shop handling only tire sales and installation carries less exposure than a full-service transmission or engine rebuild operation where post-repair failures create significant completed operations liability.

Test Drives and Vehicle Operations

Shops that perform test drives on public roads need hired and non-owned auto coverage, which adds to your premium but is non-negotiable if employees regularly operate customer vehicles. This coverage protects you when an employee test-drives a customer’s car and causes an accident-your garage liability policy typically won’t cover this exposure without the proper endorsement. When you evaluate coverage, discuss with your insurance professional how the policy responds to your specific activities.

Number of Employees and Contractors

The number of employees and independent contractors working in your shop shapes your workers’ compensation costs and liability exposure significantly. Each additional employee increases your payroll base, which directly impacts workers’ compensation premiums in most states-this coverage is mandatory if you have employees and typically costs $1,500 to $4,000 annually depending on payroll and job classification.

If you use independent contractors for specialized work like custom upfitting or bodywork, confirm whether your garage liability policy covers their work or if you need separate endorsements or contractor liability coverage. Many shop owners assume their garage policy automatically covers subcontractors, then discover a coverage gap after a claim arises.

Customer Volume and Premises Exposure

Premises liability-slip-and-falls, customer injuries on-site-becomes a real exposure as your customer volume grows. A shop with five employees handling 50 customer vehicles weekly faces different daily risk than a solo operation handling 10 vehicles, so your coverage limits should reflect your actual transaction volume and foot traffic rather than industry averages. This assessment directly influences which coverage options you’ll need and at what limits, setting the stage for evaluating the specific types of vehicles and services your shop handles.

Common Coverage Gaps That Cost Shop Owners Money

Most shop owners face their coverage shortfalls the hard way-after a claim gets denied or partially paid. The Insurance Information Institute reported that commercial lines premiums rose 7.1 percent in 2024, which means cutting coverage to save on premiums creates dangerous exposure. Inadequate liability limits rank as the most common mistake we see at shops across the region. Many shops carry minimum limits of $300,000 to $500,000 per occurrence, which sounds substantial until a serious injury or major property damage claim arrives.

Why Liability Limits Matter More Than You Think

A customer’s permanent disability from a shop accident, or a fire that spreads to an adjacent business, can easily exceed $1 million in damages. If your policy maxes out at $500,000 and the judgment is $1.2 million, you’re personally liable for the gap-potentially threatening your business and personal assets. The fix requires honest assessment of your worst-case scenario. A ten-person shop performing engine rebuilds and transmission work should carry minimum limits of $1 million per occurrence and $2 million aggregate, not the lowest available option. Calculate appropriate limits by considering your annual revenue, the types of vehicles you service, and the dollar value of potential post-repair failures.

Hired and Non-Owned Auto Coverage: A Frequently Overlooked Exposure

Hired and non-owned auto coverage represents the second major gap, particularly for shops that perform test drives or road tests. Your garage liability policy does not automatically cover accidents when employees operate customer vehicles on public roads. If an employee test-drives a customer’s car and causes a collision, injuring another motorist, your garage policy likely denies the claim. You need a specific endorsement or separate hired and non-owned auto coverage, which typically costs $300 to $800 annually depending on your vehicle volume and employee count. Many shop owners skip this coverage thinking it’s included, then face a six-figure claim with no protection.

Equipment and Tools: The Hidden Asset Gap

The third gap involves underinsuring tools, diagnostic equipment, and shop improvements. Shops accumulate expensive assets over time-alignment machines, tire machines, diagnostic computers, lifts-yet many owners never adjust their property insurance limits to match current replacement costs. A single electrical fire can destroy $50,000 in equipment, but if your property policy only covers $20,000, you absorb the loss. Conduct a physical inventory of your equipment at least annually, photograph it, and confirm your property coverage matches current replacement value, not what you paid five years ago. This simple step prevents thousands in uninsured losses when disaster strikes.

Final Thoughts

Selecting the right garage insurance coverage options requires understanding how commercial general liability, garage keepers liability, and business property insurance work together to protect your shop. Each coverage type addresses a distinct risk, and gaps in any area expose your business to significant financial loss. The most common mistakes happen when shop owners underestimate liability limits, skip hired and non-owned auto coverage for test drives, or fail to update property insurance as equipment values change.

Your garage insurance needs shift as your business grows, adds services, or changes operations. Annual policy reviews catch these shifts before they become problems, and rising commercial premiums make this process even more important. Review your limits against your worst-case scenarios, confirm that all your actual activities are covered, and adjust your deductibles based on what your shop can realistically absorb out-of-pocket.

Finding the right garage insurance provider means working with someone who understands your specific operation, not just selling you a standard package. Contact us at Briggs Agency, Inc. to discuss your garage insurance needs and get a quote that reflects your actual business-our experienced local agents take time to understand your services, your employee count, your location, and your risk profile, then build a program that addresses your real needs.

The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or insurance advice. Coverage options, terms, and availability may vary. Please consult with a licensed professional for advice specific to your situation.
Artificial intelligence may have been used to generate text and images in some blog articles.

Running a restaurant in Indiana means navigating workers compensation requirements that protect your team and your business. At Briggs Agency, Inc., we’ve helped countless restaurant owners understand their obligations and avoid costly mistakes.

Workplace injuries happen fast in kitchens and dining rooms, but the right preparation and compliance practices can make all the difference. This guide covers what Indiana requires, common injuries you’ll encounter, and practical steps to keep your staff safer.

What Indiana Actually Requires for Restaurant Workers Compensation

Coverage Is Non-Negotiable

Indiana mandates workers compensation coverage for any restaurant with employees-no exceptions, no minimum payroll threshold. If you have even one person on staff, you need coverage. The Indiana Department of Labor enforces this requirement strictly, and violations carry real consequences. Operating without coverage exposes you to fines, criminal liability, and personal asset seizure if an employee gets injured. Restaurants that lapse on coverage face penalties exceeding $10,000, which is why compliance matters from day one.

Classification Codes and Premium Calculation

Your classification code determines much of your premium. The National Council on Compensation Insurance assigns code 9082 to most full-service restaurants, but your actual code depends on the specific work your employees perform. Misclassifying a line cook as a dishwasher can result in underpaying for months, then facing a substantial bill at renewal when the audit catches the error.

Indiana restaurants typically pay between $2 and $6 per $100 of payroll, though rates vary significantly based on your experience modification rating. Your experience modification rating reflects your actual losses compared to expected losses for your business size and type. If you’re new to the industry, you may start with little or no rating, but claims accumulate quickly in restaurants where slip-and-fall and cut injuries are common.

Payroll Accuracy and Family Members

One detail that many owners miss: you must include family members working in the restaurant in your payroll calculations. Failing to cover a spouse or adult child who works shifts can leave them without benefits if injured and may trigger state fines.

Accurate payroll budgeting for the year ahead prevents costly surprises. Underreporting payroll leads to an end-of-year audit bill that catches many owners off guard, while overreporting ties up cash unnecessarily.

Regional Risk Factors

Indiana’s location along the Ohio River and seasonal hiring patterns create additional risk factors that push premiums higher than national averages, particularly during summer months when new seasonal staff join your team with minimal experience. Understanding these local pressures helps you anticipate costs and plan your budget accordingly. The specific injuries that plague Indiana restaurants-and how to prevent them-shape both your claims history and your long-term premium trajectory.

What Restaurant Injuries Actually Cost Your Business

The True Price of Common Kitchen and Dining Room Injuries

Cuts, burns, and slip-and-fall incidents dominate Indiana restaurant injury claims, and the financial impact extends far beyond the initial medical bill. AmTrust data on restaurant injury costs and frequency shows that slips, trips, and falls consistently rank as the costliest injuries. Burns in kitchens typically run $3,000 to $8,000 per incident depending on severity and depth, while cuts requiring stitches average $1,800.

These numbers explain why injury frequency matters more to your premium than severity: multiple small claims raise your experience modification rating faster than one large claim, which means your costs compound year after year if you don’t address the root causes.

Hidden Costs from Repetitive Strain

Repetitive strain injuries from standing, lifting, and gripping appear regularly in restaurant claims but often go unreported because employees treat minor pain as part of the job. Wrist strains, shoulder injuries, and lower back problems from improper lifting technique add up quietly, then surface when someone finally seeks medical care and files a claim that sticks with your record.

Indiana’s 83 million visitors in 2024 who spent $16.9 billion on dining mean higher foot traffic in your restaurant, which directly increases slip-and-fall exposure during peak service hours when floors get wet and staff move faster.

How Workers Compensation Covers These Costs

Workers compensation covers medical expenses, surgical care, hospitalization, prescription medications, and rehabilitation for all these injuries, plus it replaces 60 to 66 percent of lost wages while the employee recovers. This wage replacement continues for the entire recovery period, which for serious injuries can stretch months or longer. Your premium reflects the actual cost of these claims, so reducing injuries directly reduces what you pay at renewal.

Prevention Strategies That Lower Your Premiums

A restaurant that stays claim-free for three consecutive years qualifies for premium discounts up to 20 percent, which means a $5,000 annual policy might drop to $4,000. The key to accessing those discounts is prevention: heated entry mats at doors eliminate moisture that causes slips during winter and humid months, documented spill-cleanup procedures ensure staff respond consistently to hazards, and lifting training teaches proper technique that prevents back injuries.

Near-miss reporting systems catch hazards before someone gets hurt, which keeps your claims history clean and your premiums manageable. These prevention measures work because they target the specific injuries that plague Indiana restaurants most frequently. Understanding which injuries pose the biggest risk in your operation allows you to target prevention where it matters most and build the safety culture that protects both your team and your bottom line.

How to Stop Injuries Before They Happen

Train New Staff on Real Hazards, Not Generic Safety

Preventing injuries in your restaurant requires moving beyond generic safety posters and implementing systems that actually work. Formal safety training during onboarding is non-negotiable, but the content matters more than the checkbox. New hires need specific instruction on slip prevention, proper lifting mechanics, and how to use equipment safely-not a 15-minute video they forget by their second shift.

Training should cover the exact hazards in your operation: if your kitchen has a fryer station, teach oil burn prevention and proper protective equipment; if your dining room has tile floors, explain spill response procedures and why non-slip footwear is mandatory. Seasonal staff in summer require extra attention because new employees drive injury frequency higher when they lack experience. Conduct refresher training quarterly rather than annually, and make it brief and focused on recent near-misses or claims your restaurant has experienced.

Maintain Equipment and Work Stations Consistently

Equipment maintenance prevents breakdowns that create unsafe conditions. A failing walk-in cooler forces staff to jury-rig storage solutions, a worn oven door becomes a burn hazard, a loose floor mat becomes a trip hazard. Schedule equipment inspections monthly and document them; when something breaks, repair it immediately rather than working around it. This approach reduces downtime and keeps your experience modification rating stable.

Create a near-miss reporting system that treats hazards discovered before injury as wins, not failures. If a server notices a loose railing before someone falls, that’s a report worth celebrating because it prevents a claim that would raise your premiums.

Respond to Injuries Promptly and Strategically

Incident response matters as much as prevention because how you handle an injury affects both your employee’s recovery and your claims history. Report injuries to your carrier promptly-even minor treat-and-release incidents count toward your frequency, so delaying a report doesn’t help your premium. Implement a return-to-work program that brings injured employees back on modified duty as soon as medical clearance allows; light-duty tasks keep your employee engaged and reduce the wage replacement costs your carrier pays.

Indiana employers must follow ADA guidelines when making accommodations, but reasonable modifications like moving an injured line cook to prep work temporarily or assigning a server with a sprained ankle to host duties protect both the employee and your premium. Document everything: the injury description, medical treatment received, time away from work, and the modified duties assigned. This documentation demonstrates that you take safety seriously and helps your carrier understand your risk management practices when they review your account at renewal.

A restaurant that reports promptly, manages claims actively, and brings employees back to work efficiently shows carriers that you’re serious about risk management, which translates directly to lower renewal quotes and access to those 20 percent discounts available after three claim-free years.

Final Thoughts

Restaurant workers compensation in Indiana protects your team and your business, but compliance alone won’t control costs or keep your operation running smoothly. The real value comes from treating safety as a business priority, not just a regulatory checkbox. Your experience modification rating compounds over time based on claim frequency, and prevention strategies directly reduce both injuries and premiums-a restaurant that stays claim-free for three years can access discounts up to 20 percent, which means the investment in safety training, equipment maintenance, and incident response systems pays for itself many times over.

Proactive risk management demonstrates to your carrier that you take safety seriously, which influences renewal pricing and your access to competitive rates. When you report injuries promptly, implement return-to-work programs, and document your safety practices, you build a claims history that reflects your commitment to protecting your employees. This approach also reduces turnover because employees feel safer and more valued when you invest in their wellbeing.

We at Briggs Agency, Inc. understand the unique risks Indiana restaurants face, from seasonal hiring spikes to regional weather patterns that affect property exposure. Our local agents can review your current coverage, explain how your premiums are calculated, and identify gaps that leave you exposed. Contact us today to discuss how we can help you build a restaurant workers compensation Indiana strategy that fits your operation and budget.

The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or insurance advice. Coverage options, terms, and availability may vary. Please consult with a licensed professional for advice specific to your situation.
Artificial intelligence may have been used to generate text and images in some blog articles.

E-bikes and e-scooters are easily becoming one of the most popular fads used among kids, teens, and even adults. With these battery-powered motors, they reach between 10-25 mph with some higher-performance models even reaching up to 40 mph. While they are fun and convenient, they also raise concerns regarding safety especially among younger, inexperienced riders.

Is Insurance Required?

While insurance is not legally required for e-bikes and e-scooters, it is highly recommended. However, where they fall upon under liability is where it gets tricky.

Since their range of speeds and power can differ, their classifications can also differ based on insurance company. In most cases, they will be considered as a standard bicycle. Therefore, they would be treated as personal property under a homeowner’s policy. However, some policies contain motorized vehicle exclusion which can limit or completely deny coverage depending on many things such as:

• Speed
• Motor wattage
• Vehicle classification
• Where the incident occurred
• How the e-bike or e-scooter was being used

On the other hand, some of these e-bikes and e-scooters may fall closer to a motorized vehicle. For an e-bike, the federal cap is 20 mph and 750 watts. Anything that is not considered a Class 1, Class 2, or Class 3 will be subject to a motorized vehicle.

Once this threshold has been met, the e-bike may be legally required to registration, insurance, and a motorcycle license. Since laws vary by state, it is important to understand your local regulations.

Indiana Law Regulations

For Indiana, the law limits e-bikes to motors of 750 watts or less. If they were to exceed those limits, it may be legally classified as a motorized vehicle.

As for safety requirements, Indiana does not require helmets to be worn under Class 1 and Class 2 bikes. However, rules are slightly stricter for Class 3 e-bikes. Any riders or passengers under the age of 18 must wear a properly fitted helmet approved by safety standards, and individuals under the age of 15 are not able to operate the e-bike.

In general, Class 1 and Class 2 e-bikes are allowed to be driven anywhere that regular bicycles are permitted. This includes trails, parks, and other local bike paths. Class 3 e-bikes face more restrictions. Overall, it relies on local rules regarding e-bike access.

As for e-scooters, they must meet the following:

• Must weigh under 100 pounds
• Can have no more than three wheels
• Must include handlebars and a standing platform
• Cannot exceed 20 mph

Like Class 1 and Class 2 e-bikes, e-scooters are not subject to helmet requirements and are generally expected to follow the same traffic laws as bicycles.

For both e-bikes and e-scooters, Indiana requires the following:

• Obey traffic signs and signals
• Cannot ride on interstate highways
• Should ride near the right side of the road when appropriate
• Must have reflectors and a white light visible from 500 feet when riding at night

Why You Need Insurance

As the popularity of e-bikes and e-scooters continues to rise, so does the number of accidents. Within the last year, there was reportedly 80% more e-bike and e-scooter injuries treated at hospitals with accidents increasing by roughly 45% each year. For a lot of these accidents, riders face head injuries, fracturs, and other serious conditions. Many say that this is linked to the limited regulation of these high-powered e-bikes and e-scooters and adoption by young, inexperienced drivers.

While your homeowner policy MAY cover theft, damage, or limited liability protection, it will not cover any medical expenses. Rather, health insurance would be applied. Overall, there are a lot of potential gaps in coverage regarding e-scooters and e-bikes under a homeowner’s policy due to classification of the electrical device and exclusions under your policy.

As for an auto policy, e-bikes and e-scooters will not be eligible as they are not registered motor vehicles.

How to Ensure You’re Insured

Many companies have been introducing e-bike and e-scooter insurance as an addition to a homeowner’s policy. Larger companies such as Progressive, State Farm, and Farmers Insurance have had this addition. Under this coverage, the following may be available:

• Comprehensive – damages other than collision (theft, vandalism, etc.)
• Collision – if you hit another object
• Liability – injury or property damage to others
• Medical payments – medical expenses for you and passengers
• Roadside assistance – breakdown, dead battery, and other needs of transportation
• Replacement parts – manufactured parts for repair

Tips for Staying Safe

If you are considering purchasing an e-bike or e-scooter, it is best to make sure you are staying protected at all times, insurance and all! Here are some tips to make sure that you are safe:

Always wear a helmet

Even if the law does not require you to wear one, helmets greatly reduce the risk of head injuries.

Follow local traffic laws

Treat e-bikes and e-scooters like any other vehicle on the road by obeying traffic lights and signals.

Avoid riding distracted

Never text or use your phone while driving.

Supervise younger riders

Kids and teens may not fully understand stopping distances, vehicle acceleration, and other traffic patterns. Make sure they are properly educated and supervised.

Understand the speed and power prior to riding

Many accidents occur because riders underestimate the speed and power of their electrical vehicles. Practice in a safe area before riding in more trafficked areas.

Use lights and reflective gear at night

Visibility is crucial! Make sure that you can be seen at all times and weather conditions.

Talk to One of Us!

When considering purchasing a e-bike or e-scooter, it is essential that you speak to your agent to understand where coverage can be applied and any gaps that may be hiding.  Contact one of your local agents today at Briggs Agency by calling (219) 769-4840.