What is Garage Keepers Insurance?

garage keepers

A garage keepers insurance policy protects you if a customer’s vehicle is damaged while it is at your business. Also, this coverage is not included in a standard garage liability policy.  It is an optional coverage for business owners who offer towing services or operate service stations. 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.

Why do I need Garage Keepers Insurance?

Garage keeper insurance provides protection in case a vehicle is damaged by fire, theft, vandalism or collision. Whether one car or a garage full of cars is damaged while in your care, the total amount covered by Garage keepers insurance is based on the limit you choose.

What Does Not Garage Keepers Insurance Cover?

It does not cover damage that occurs from faulty workmanship or parts or insufficient warranties. Basic garage keeper insurance excludes coverage for the contents of your customers’ vehicles, such as the items in their glove box or trunk and any non-factory stereo equipment. You can, however, add an endorsement to your garage keepers policy to extend coverage to personal property kept inside customers’ vehicles. This is not necessary to avoid any liability exposure, but it does encourage goodwill and will bolster your reputation in the event a client’s vehicle and its contents become damaged or destroyed.

Which Businesses Require Garage Keepers Insurance?

Many people are unsure whether they need garage keeper insurance or not. Therefore, we have provided a list of businesses who may need it for their protection.

  • Service stations
  • 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