Garage and Garage Keepers Liability Insurance
Protect Your Auto Business from Every Angle
As an automotive business owner, whether you’re a dealership, repair shop, body shop, or specialty garage, you’re responsible for your own vehicles, your customers’ vehicles, and the people who interact with your business daily. Garage Insurance is designed to protect you from a range of risks that could threaten your operations, your reputation, and your bottom line. At Refine Risk, we help you build a coverage system that keeps you on the road to success.
Why Garage Insurance Matters
Accidents happen, even in the best-run garages. A mechanic might damage a customer’s car on a test drive. A fire could destroy your garage and the vehicles stored inside. Or a client might slip and fall while dropping off their car. Without the right insurance, a single incident could result in catastrophic financial losses.
Garage Insurance bridges the gap between standard business auto policies and the unique needs of the automotive industry.
What’s the Difference Between Garage Liability and Garage Keepers?
Understanding the distinction between these two essential coverages is critical:
Garage Liability Insurance
Garage Liability combines elements of a business auto policy with general liability coverage, including products and completed operations. It protects your business from third-party claims of bodily injury or property damage caused by your garage operations, such as:
- A mechanic test-driving a vehicle who causes an accident with another driver.
- A customer slipping on an oil spill in the service area.
Garage Liability covers these third-party injuries and damages but does not cover the customer’s vehicle itself while in your care.
Garage Keepers Insurance
Garage Keepers coverage fills the gap left by the “care, custody, or control” exclusion in Garage Liability. It protects your business if a customer’s vehicle is damaged while left in your care for repairs, servicing, or storage. For example:
- A fire damages a customer’s car stored overnight.
- A test drive results in an accident that totals the customer’s vehicle.
- A vehicle is stolen from a secure lot.
Key Features of Garage Liability Insurance
Garage Liability is structured under the Garage Coverage Form (CA 00 05), with:
- Section II – Liability Coverage
- Covers bodily injury and property damage arising from garage operations.
- Covers owned and non-owned autos used in the garage business.
- Includes a broad definition of garage operations, including activities “necessary or incidental” to the business.
- Excludes coverage for vehicles in your care, custody, or control—this is where Garage Keepers steps in.
Key Features of Garage Keepers Insurance
Garage Keepers Insurance protects vehicles in your custody during repair, service, or storage. It can be written in three ways:
- Legal Liability: Covers damage to a customer’s vehicle if the damage results from your negligence (e.g., improper repair or unlocked vehicle stolen).
- Direct Primary: Covers the customer’s vehicle damage regardless of negligence (e.g., hail damage, even if you followed proper storage procedures).
- Direct Excess: Also covers customer vehicles regardless of negligence, but pays only after any other collectible insurance is applied.
Common Risks in Auto Businesses
- A mechanic damages a customer’s vehicle on a test drive.
- Fire, theft, or vandalism in your lot or repair facility.
- Slips, trips, or falls involving customers or employees.
- Negligent repairs leading to further vehicle damage.
- Damage to vehicles from weather events like hail or flooding.
How Garage Insurance Could Have Helped: Real-World Example
Imagine a customer leaves their car with your shop for a routine brake replacement. A mechanic takes the car for a test drive to ensure everything’s working properly—but in the process, causes an accident that injures another driver and totals the customer’s car.
- Garage Liability would cover injuries and damages to the other driver and their vehicle.
- Garage Keepers would cover the customer’s car that was totaled while in your care.
Without both coverages, your business could be liable for hundreds of thousands of dollars in legal fees, settlements, and repairs—all of which could threaten your financial stability.
Who Needs Garage or Garage Keepers Insurance?
If you operate an automotive business in NY, NJ, or CT, Garage Insurance is essential:
- New and used car dealerships
- Repair shops and body shops
- Specialty garages and classic car restorers
- Tow truck and roadside assistance companies
- Parking garages and storage lots
Cost Factors for Garage Insurance
Premiums depend on several factors:
- Number of vehicles in your inventory or in your care
- Annual revenue and number of employees
- Services offered (e.g., repair vs. sales)
- Location and security measures
- Claims history and risk management practices
Our team works with top national and regional carriers to build the most cost-effective, comprehensive coverage for your unique needs.
Serving Tri-State Area Automotive Businesses
From Manhattan dealerships to repair shops in Newark to storage facilities in Stamford, Refine Risk understands the local regulations, business challenges, and insurance needs of the Tri-State area. We build coverage systems that empower your growth, protect your investments, and support your long-term goals.
Why Choose Refine Risk?
- Local expertise in the automotive industry
- Access to top national garage insurance carriers
- Customized protection systems, not cookie-cutter policies
- Advisors who focus on your legacy, not just the next sale
How to Get Started on Your Garage Insurance Quote
Protect your business, your customers’ vehicles, and your peace of mind. Call our office today or complete the form below to get started on a personalized Garage Insurance quote. Let’s build a system that keeps your business running strong mile after mile.