Garage Keepers Liability

Garage Keepers Liability Insurace

Garage keepers liability is designed to mitigate the risks of businesses that provide towing, car repair, or auto body shop services. These businesses face exposures related to assuming temporary responsibility of valuable property and sometimes being required to house that property for extended periods of time. If you operate an auto service business where you store customer vehicles in a garage or on a lot, it’s important to keep yourself protected with the right insurance. Request a free rate comparison through our LaunchPad quote tool, and we will connect you to a qualified agent that can tailor customized coverage to fit your needs.

What is Garage Keepers Liability?

Garage keepers liability is a form of bailee’s coverage, which means that it falls under the category of care, custody, and control (CCC) insurance. A bailee is any party that assumes custody of property they do not own, like a repair shop or a coat check. As a form of bailee’s coverage, garage keepers liability grants financial protection for customer vehicles in the event of:

• Theft
• Vandalism
• Weather damage
• Fire
• Damage due to negligence
• And more

This coverage is in effect while the vehicle is being parked, stored, or actively worked on. It is a critical form of coverage for any auto service business seeking to have a truly comprehensive insurance plan.

Garage Liability vs Garage Keepers Liability

Garage liability and garage keepers liability are often purchased together as the latter expands the coverage provided by the former. In short, garage liability is designed for commercial risks related to garage ownership and operations including accidental bodily injuries and property damage with coverage for those events extending to vehicles owned by the business. Importantly, that coverage does not apply to customer vehicles, which is where garage keepers liability comes in. Garage keepers liability has its own limitations and typically excludes:

• Damage caused by bad parts or faulty workmanship
• Theft by an owner or employee of the business
• Audio equipment not permanently installed
• Radar and communication equipment not permanently installed
• Tools, CDs, and other items that may be held in compartments

Businesses may also want to supplement with on-hook towing insurance and other policies important to the auto service industry. If you’re shopping for auto business policies, our service team can help you better understand your options and get your questions answered. Fill out the free quote request form today and find the best prices for your insurance plan.