Garage Keepers and Garage Liability Insurance

Auto garage and repair shops are entrusted with keeping the property of their customers safe while it is in their control.  Garage Keepers and Garage Liability insurance policies are designed to help you protect your customer’s property and your business in the event of accidents, injuries or property damage.   These two types of insurance complement each other and ensure that you don’t have gaps in coverage.

Garage Keepers Insurance policy protects you if a customer’s vehicle is damaged while it is at your business.  This coverage is not included in a standard garage liability policy.

It protects customers’ vehicles from damages while in your possession or control as a result of:

  • Fire
  • Theft
  • Extreme weather
  • Vandalism at your place of business

It does not cover damage that occurs from faulty workmanship or parts and insufficient warranties.  Basic garage keepers excludes the contents in customers’ vehicle including in glove box, trunk and non-factory stereo equipment, etc.  

Garage Liability Insurance is designed to cover bodily injury or property damage cause by an accident arising out of garage business operations.  

It provides coverage for:

  • Third party injuries
  • Property damage caused by equipment owned by the business
  • Liability claims such as discrimination and employee dishonesty
  • Products manufactured or sold by the shop that cause damage to a customer’s vehicle

If a customer slips and falls at your shop, this coverage will help pay for any legal defense if they decide to sue and help pay for any medical bills the customer had due to the injury.  It will also help pay for damages if a vehicle owned by the business causes a collision with another automobile or structure which damages a third party property