Garage Liability & Garage Keepers Liability

Generally speaking, garage liability insurance is purchased by someone who owns a repair shop, or some other auto service center. It typically covers liability for the premises and operations, products and completed operations. So, if you are the owner of a service center and someone who applied for employment claimed discrimination, or a customer slipped and fell or claimed faulty parts or service, you would be covered.

Garage liability insurance also covers automobiles owned by the business, but it does not cover customers' cars that are left in the care of the shop. That sort of coverage is known as garage keepers' insurance. Garage keepers' insurance is usually sold with garage liability policies, but it is still a separate contract.


Garage keepers liability insurance is coverage which designed for business owners who offer towing services, operate service stations, auto repair and body shops. It protects a customer’s vehicle when the company is keeping it at a covered location for parking or storing, or to perform service. This provides coverage to customer’s vehicles left inside the shop fo...r damage due to the insured’s legal liability (for example, the customer must prove the insured is negligent). For this type of coverage, comprehensive coverage includes specific causes of loss such as explosion, fire, theft, lightning, or vandalism. It also specifically covers any charge incurred on the building, any faulty products used for repair or service during daily operations, and any work completed on the building. Although the business owner’s personal vehicles are covered in the policy, the customer’s vehicles that are left inside the shop are excluded. Also helps promote a client’s business by promoting an air of professionalism.

Companies need coverage besides garage keepers liability insurance. Assets like tools and machinery that travel to roadside locations must be covered by inland marine insurance. Property insurance also covers materials that are located in the garage, as well as the building itself.

The options of garage keepers liability insurance are comprehensive. This means anything other than collision or overturn, specified causes of loss such as fire, lightning, or explosion; theft; or mischief or vandalism, and collision or overturns. This coverage is needed because of the “care, protection or control” exclusion in the liability section of the policy. Because the basic policy coverage is based on the “legal liability” of the insured for damage to customer’s vehicles, the customer must prove that the insured was inattentive for the damages.

It should be noticed that garage keepers liability insurances are different from garage liability insurance which covers property damage and bodily injury resulting from the operations of an auto garage.