Garage Keepers Insurance

Garagekeepers insurance is a type of insurance coverage designed for businesses that provide services to automobiles, such as auto repair shops, body shops, towing services, and service stations. This insurance protects the business owner’s liability for damages to customers’ vehicles while they are in the care, custody, and control of the insured business.

What does Garagekeepers insurance do?

• Coverage Scope: Garagekeepers insurance typically covers damages to customers’ vehicles caused by fire, theft, vandalism, collision, or other specified perils while the vehicles are on the business premises for service or repair.

Types of Coverage:

• Legal Liability Coverage: Protects the business if it is found legally responsible for damage to customers’ vehicles.
• Direct Primary Coverage: Provides coverage regardless of whether the business is legally liable for the damage.
• Limits and Deductibles: Like other insurance policies, garagekeepers insurance will have coverage limits (the maximum amount the policy will pay) and may include deductibles (the amount the business is responsible for before the insurance coverage kicks in).
• Customer’s Property: It’s important for the business owner to clarify whether the coverage extends to personal property left in the customer’s vehicle, such as belongings or aftermarket accessories.
• Exclusions: Policies may have exclusions, and it’s crucial to understand what is not covered. Common exclusions may include intentional acts, employee theft, and certain environmental events.
• Risk Assessment: Insurers may consider factors such as the type of services offered, security measures in place, and the business’s history of insurance claims when determining premiums.
• Legal Requirements: In some locations, garagekeepers insurance may be a legal requirement for businesses that operate in the automotive services industry.

Contact Us

For businesses that work on or store customers’ vehicles, having garagekeepers insurance is essential to mitigate the financial risks associated with potential damages or losses to customers’ property while in the business’s care. Call ISE Insurance Services today to see how we can help with your garagekeepers exposure.