Garage Keepers Liability Insurance

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What is Garage Keepers Liability and do I need it?

Garage Keepers Liability insurance is an optional coverage endorsement meant to protect only your customers’ vehicles or goods from damages while under your care, custody, control or possession.

Garage Keepers Liability insurance is vital for small businesses dealing with automotive services. This includes the following, but not limited to, auto repair shops, service stations, towing companies, automotive body shops, vehicle detailing, maintenance companies, carwash hubs and many more. As long as your company deals with attending, servicing, repairing, parking or storing customer’s vehicle, obtaining a Garage Keepers Liability insurance is a must to safeguard the financial interest of your business.

What does Garage Keepers Liability cover?

In a nutshell, Garage Keepers Liability coverage aims to protect your business and your customer’s vehicle if something unlikely happens while it is under your possession. Additionally, this policy is comprehensive meaning it will provide diverse coverage other than collision or overturn.

Garage Keepers Liability offers three primary forms of protection:

  1. Legal Liability – the most common coverage form that protects the customer’s vehicle due to insured negligence. A great example would be if your mechanic accidentally broke the car while fixing it or damaged it while performing a test drive.

  2. Direct Primary – if the damage happens to be from theft or extreme weather loss, the direct primary coverage steps in to protect your client’s automobile. Regardless of who is at fault, as long as the vehicle is kept protected, this will cover damages.

  3. Direct Excess – this works almost the same as with direct primary coverage in the sense that who is at fault doesn’t matter. But instead of paying the full amount, it will only pay in excess of the cost collectible under the owner’s policy.

How much does Garage Keepers Liability insurance cost?

Like other insurance policies, determining the exact price of Garage Keepers Liability will depend on your business and degree of coverage. Several factors will affect the amounted premium such as the type of vehicles you service, the location of your business, and the number of vehicles you commonly attend to in a day. But on the average, this policy will cost anywhere from $1,000 to $1,300 annual. Premium rates range from $800 being the cheapest, up to $2,000 for auto dealers who need more protection.

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What are the “limits” of a Garage Keepers Liability insurance?

Keep in mind that not everything is covered by Garage Keepers Liability insurance. It does not protect damages caused by faulty workmanship or insufficient warranties. Contractual obligations are equally not covered along with defective parts and if the vehicle is stolen by the insured.

All contents present in your customer’s vehicle are likewise subject to exclusion. This includes the following but not limited to:

  • Stereo equipment that is not permanently installed
  • CDs, DVDs and trunk/compartment items
  • Telephone, mobile radios, and scanners unless permanently installed
  • Radar detection equipment

If you want to extend your Garage Keepers Liability coverage to include personal client items in the protection, there is an option to incorporate it into the endorsement policy as an act of goodwill.

Business Insurance

Running a business is challenging enough without having to worry about lawsuits, employee injuries or property damage. Having the right insurance gives you the peace of mind to focus on what matters - running your business.

The coverage you need depends on the type of business you run. A restaurant owner needs to be covered against customers possibly getting food poisoning while an accountant needs to be covered against calculation errors. CoverWallet's intelligent assessment system will identify the insurance you need based on your specific business, get you a policy that fits your budget, and do it all in less time than you think.

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