Insurance Coverage for Garage Keepers: What You Need to Know

Running a business that handles customers’ vehicles carries serious responsibility. Whether you operate an auto repair shop, a valet service, or a car dealership, your customers trust you with one of their most valuable assets—their vehicle. That’s why it’s important to have the right insurance coverage in place. Garage keepers insurance helps protect your business, your employees, and the vehicles in your care.

Here’s a breakdown of the key insurance coverages garage keepers should consider:

1. Garage Liability Insurance

Garage liability insurance is the foundation of protection for your business. It covers third-party claims for bodily injury or property damage that happen during your daily operations. For example, if a customer slips and falls in your shop or if a vehicle causes damage during a test drive, this coverage helps pay for legal costs, medical bills, and any court-awarded damages. It protects your business from major financial setbacks.

2. Garage Keepers Liability Insurance

This policy is essential. Garage keepers liability insurance protects customers’ vehicles while they’re in your care, custody, or control. It covers damages from events like fire, theft, vandalism, and collisions. If you offer repairs, car washes, or valet parking, you need this protection. Without it, you could be responsible for expensive repairs or even the full value of a totaled car.

3. Garage Keepers Physical Damage Insurance

Some businesses face higher risks of damaging customer vehicles. Garage keepers physical damage insurance steps in to help. It pays for physical damage caused by accidents, natural disasters, or criminal activity. If a fire breaks out or a car gets hit while moving inside your garage, this coverage helps cover the cost of repairs or replacement. It’s especially valuable for busy repair shops and high-volume operations.

4. Business Property Insurance

You’ve invested in tools, equipment, office furniture, and your building. Business property insurance helps protect all of it. It covers losses caused by fire, theft, vandalism, storms, and other risks. If a break-in happens or a storm damages your roof, this policy helps cover the cost of repairs or replacing stolen and damaged items. It keeps your business running even after unexpected events.

5. Workers’ Compensation Insurance

If you have employees, you need workers’ comp. It’s not just smart—it’s legally required in most states. This coverage helps pay for medical treatment and lost wages if a worker gets hurt or sick on the job. Whether someone strains a muscle while lifting an engine or suffers a burn from hot equipment, workers’ comp protects your staff and shields your business from lawsuits and penalties.

6. Business Interruption Insurance

Accidents and disasters don’t just cause damage—they also stop your business from operating. Business interruption insurance covers your lost income if you’re forced to close temporarily. It helps with rent, payroll, and other regular expenses while you recover. If a fire shuts your garage down for weeks, this coverage helps you stay afloat during repairs.

Why This Coverage Matters

Garage keepers face unique risks every day. A single accident, theft, or lawsuit could drain your resources and harm your reputation. With the right insurance, you can handle these risks and keep your business secure.

At Combined Insurance Service LLC, we help garage owners find the right protection for their operations. Call us at 816-847-1911 to get started with a customized policy built for your business.