Garage Liability & Garagekeepers Insurance
Garage liability and garagekeepers insurance are specialized commercial coverages designed for businesses in the automotive industry — including auto dealerships, repair shops, body shops, service stations, parking operations, and similar businesses that work on, store, or sell vehicles. Standard commercial general liability policies do not adequately address the unique liability exposures of automotive operations, and a specialized garage program is typically required to provide complete protection.
Garage Liability Coverage
Garage liability insurance functions similarly to commercial general liability but is specifically designed for automotive operations. It covers:
- Premises and operations liability — bodily injury and property damage claims arising from your business premises and day-to-day operations
- Products and completed operations — claims arising from repair work performed or parts sold by your business
- Auto liability for covered autos — liability arising from the operation of vehicles in connection with your business, including dealer plates, test drives, and vehicles being moved on your premises
- Customer vehicles being operated — liability when your employees drive customers' vehicles as part of service or delivery operations
Garagekeepers Coverage
Garagekeepers coverage is a separate but complementary protection that covers physical damage to customers' vehicles while they are in your care, custody, or control. When a customer's car is damaged while at your shop — whether from fire, theft, vandalism, or a collision on your premises — garagekeepers coverage pays for that damage. Without it, a repair shop or dealership could face significant out-of-pocket liability for damage to customers' vehicles that occurs on their lot.
Industry Considerations
The automotive industry encompasses a broad range of operations — franchise dealerships, independent repair shops, body shops, tire stores, quick-lube operations, car washes, towing companies, and parking facilities — each with different liability and property exposures. The number of vehicles on the lot, the value of customer vehicles in your care, the types of services performed, and the number of vehicles operated by employees all affect how garage liability and garagekeepers coverage should be structured. Etowah Insurance Group has experience working with automotive businesses and can help you build a program that addresses the specific exposures of your operation.
