Insurance for Parking Lots and Garages

When a customer parks in your parking lot or garage, a bailment is in progress. Bailment is the legal relationship where the bailor (owner of the car) transfers physical possession of the car to another person or entity or the bailee (parking lot or garage). When the car is parked in your parking lot or garage, the bailee is responsible for loss or damage of the car.

Parking lots and garages are often overlooked by property owners. Often, parking lot owners don't have security inside which leaves it open many liability risks. Most of these are due to the lack of security and not properly protecting employees and customers. This makes parking lots and garages prone to criminal activity. In fact, roughly 80 percent of criminal acts occur in parking lots and garages. Many assaults or other crimes are committed when people are getting in and out of their vehicles.

Make sure to have adequate lighting in your parking lot or garage and enough security and surveillance that your customers will feel safe. Protect your parking lot business from hazards like traffic accidents and slips and falls by using prominent signage that is easy to remember. Keep the place clean, as an unkept or dirty appearance makes it vulnerable to offenders as they think that your parking lot is unattended.

Garage Liability insurance protects your business from the outcomes that could arise as a result of theft, property damage and physical injury in your garage. It does not cover accidents and damage to cars that have been brought to your garage, as there is a separate insurance for that, but it covers the vehicles that your business owns.