Garagekeepers Insurance

Shop owners who operate towing companies, garages, and auto repair shops are not only trusted to protect and possibly fix their customers’ vehicles, but also to keep the property safe while it’s in their control, including transport. But as we all know, accidents can happen anywhere. For that, both garage liability insurance and garagekeepers insurance are needed to help protect your customers’ property and your business.

Fortunately, independent insurance agents are here to eliminate the hassle of searching on your own by walking you through a hand-picked selection of top insurance policies to cover both your business and your employees. They'll help your business get equipped with all the garagekeepers insurance and garage liability insurance it needs. But first, let’s discuss why you need protection and what coverages you should consider.

The Difference Between Garagekeepers and Garage Liability Insurance

A basic garage liability insurance policy is designed to cover third-party bodily injury or property damage caused by an accident during garage business operations. Garage liability coverage is typically purchased by automobile dealerships and auto repair shops, among other businesses. This insurance provides coverage for:

Third-party injuries
Third-party property damage caused by equipment owned by the business
Liability claims like 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 on an oil spill at your shop, this coverage will help pay for your business's legal defense if you get sued and cover any medical bills for the customer's injury. Garage liability insurance can also help pay for damages if a vehicle owned by the business causes a collision with another automobile or structure, damaging a third party's property.

Contrastingly, a garagekeepers insurance policy protects you if a customer’s vehicle is damaged while at your business. Garagekeepers liability insurance is usually sold with a garage liability policy, but it’s still a separate contract.

What Does Garagekeepers Insurance Cover?

Garagekeepers insurance, sometimes referred to as garage keepers insurance, is designed to protect businesses against damage to customer vehicles while they're under your care, custody, or control. This coverage is not included in a standard garage liability insurance 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
Other accidental damage to the vehicle (like a collision)

A garagekeepers insurance policy can compensate customers for damage or destruction to their vehicles while in your business's possession. Say an employee accidentally breaks a headlight while pulling a customer vehicle into the garage or a customer's vehicle gets stolen because an employee fails to properly lock up at night. Garagekeepers insurance can compensate each of these customers for the cost of vehicle damage and theft.

What's Not Covered by Garagekeepers Insurance?

Garagekeepers insurance doesn't cover damage that occurs from faulty workmanship, parts, or insufficient warranties. Basic garagekeepers liability insurance excludes coverage for the contents of your customers' vehicles, like items in their glove box or trunk and any non-factory stereo equipment.

You can, however, add an endorsement to your garagekeepers policy to extend coverage to personal property kept inside customers' vehicles. This isn’t typically necessary, but it can boost your reputation if a client's vehicle and/or its contents are damaged or destroyed.

Who Needs Garagekeepers or Garage Liability Insurance?

Any business that works with customer vehicles can benefit from having garagekeepers insurance and garage liability insurance. Garage liability insurance and garagekeepers insurance aren’t just recommended for auto repair shops but also for:

Service stations
Car dealerships
Car washes
Tow truck operators
Auto body shops
Detailing operations
Auto glass installers

Oil change and lube shops
Vehicle painting and pinstriping operations
Sound repair and installation shops
Emissions testing sites
Vehicle interior restoration shops
Any business that uses valet services

If your business falls into any of these categories, talk with a local independent insurance agent to get set up with the proper garage liability insurance and garagekeepers insurance today.

How to Reduce Garagekeepers Insurance Claims

Filing insurance claims can be a time-consuming process for your business, and it's not guaranteed you'll get the compensation you're expecting. That's why taking measures to reduce the risk of garagekeepers and garage liability claims in the first place is wise. You can help reduce your business's risk of having to file an insurance claim by:

Installing video surveillance equipment to deter theft and vandalism
Ensuring proper lighting illuminates your business at night
Ensuring vehicles are stored indoors overnight with locked fencing surrounding your property
Developing fire prevention policies, ensuring extinguishers and smoke detectors are up-to-date and functioning, and installing a sprinkler system
Hiring qualified employees with good driving records
Ensuring each of your employees is covered by the insurance policy or policies

The greater the effort you make to reduce your business's chances of ever having to file garagekeepers or garage liability claims in the first place, the more time you can spend focused on running a successful company for years to come.

How Much Does Garagekeepers Insurance Cost?

Your business's policy costs can vary depending on the type of work you do and more. The cost of garagekeepers insurance may differ based on several factors, including:

Annual company revenue
Business type, size, and location
Business operations
Coverage limits chosen

Deductible amount
Coverage options chosen
Prior claims history

A garagekeepers policy with a higher limit and a lower deductible will have higher premiums than one with a lower limit and a higher deductible, though it may have the protection you need.

Also, adding an endorsement, like coverage for a customer's personal property kept inside a vehicle, will increase the premiums you pay. An independent insurance agent can help you find the most affordable garagekeepers insurance near you.

Why Work Together with an Independent Insurance Agent?

Independent insurance agents can help you find the ideal garage liability or garagekeepers insurance policy for your business. They'll identify your unique company's risks and find a policy that includes the right amount of coverage at a great rate. And down the road, your agent can also help you file business insurance claims and update your coverage.

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