Garagekeepers Legal Liability Insurance
Businesses that store, tow, or service customer vehicles need reliable protection for the items in their care. Whether you're running a busy repair shop, managing a tow lot, or renting garage space, safeguarding your client's property is important to maintaining trust and avoiding costly claims. Learn more about how this coverage works, who needs it, and how to get a policy with Progressive Commercial.
When you're ready, you can get a quote online or call us to talk to an expert agent.
What is garagekeepers legal liability insurance?
Garagekeepers legal liability insurance protects you if a customer's vehicle is damaged by fire, theft, vandalism, or collision while in your possession. This optional coverage is designed for business owners who offer tow truck services or operate service stations. It's a good idea if you use a covered parking lot, storage facility, or service location to house your clients' cars.
Storage location insurance in Texas and Virginia
In Texas and Virginia, garagekeepers legal liability coverage is called storage location insurance, but it offers the same protection for customer vehicles in your care. In these two states, if you ask for garagekeepers legal liability insurance, you'll get on-hook towing insurance instead, which only applies when a customer's vehicle is being towed. It's important to understand this difference so you can make sure you get the right coverage.
Who needs garagekeepers legal liability insurance?
Businesses that tow, stow, or service vehicles should consider storage insurance to cover their customers' autos. Professions that benefit from this coverage include:
- Auto mechanics
- Auto detailers
- Garage owners
- Car dealerships
- Towing companies
If you rent your garage or service lot, your landlord might require this coverage to protect both their property and your business. You can start an online quote for garagekeepers liability insurance with Progressive Commercial today.
What does garagekeepers insurance cover?
Garagekeepers legal liability helps pay for damage you're responsible for when a customer's car is in your possession. For example, if an employee accidentally dents a vehicle stored in your garage, this coverage would pay for the repair.
It can also help with damage to the vehicle caused by things outside your control, such as theft, vandalism, fire, or certain weather conditions. Personal items inside the vehicle are not included, so if they go missing, the customer's auto insurance would be responsible.
Garagekeepers liability insurance limits, deductibles, and other details
When you get a garagekeepers legal liability policy, you can set maximum limits to determine the coverage available to you on a per-occurrence basis.
Whether one car or an entire garage full of vehicles is damaged, the amount your garagekeepers insurance pays depends on the coverage limit you choose. Your available options vary by state, but most policies offer a maximum limit of $2,500 per occurrence.
You'll also choose a per-vehicle deductible, which is typically $500. You pay the first $500 to repair or replace each vehicle, and your insurance company pays the rest.
Learn more about commercial auto deductibles.
Garagekeepers legal liability coverage: real-world scenario
You're called to tow a broken-down car. The mechanic's shop is already closed, so you keep the car in your own garage overnight. Unfortunately, your garage is broken into, and your customer's car is vandalized.
Garagekeepers legal liability insurance helps pay to repair the damage to the customer's car, up to the limit on your policy.
Garagekeepers legal liability insurance requirements
It's important to understand how garagekeepers legal liability works so you can make sure your business has the right protection for the places you operate and the vehicles you handle. Keep these key points in mind when buying coverage:
- If you have more than one garage, parking lot, or storage location, each one will need its own insurance.
- Garagekeepers legal liability must be purchased as part of a package that includes liability insurance and on-hook towing insurance.
What does garagekeepers insurance cost?
Garagekeepers liability insurance costs will vary, based on the risks your business faces. Your premium will be influenced by the following factors:
- Location
- Number of service locations
- Size of business
- Coverage type
- Claims history
- Insurance limits
You can save with Progressive Commercial by taking advantage of insurance discounts, including multi-policy savings.
Common questions about garagekeepers legal liability insurance
Do I need garagekeepers insurance if I rent my garage?
Yes, most landlords will expect you to have this insurance coverage for customer vehicles that are stored or serviced on the property. It helps make sure you're both protected if any damage or loss happens on-site.
What's the difference between garagekeepers insurance and general liability?
Garagekeepers insurance specifically safeguards customer vehicles that are in your care, custody, and control. General liability protects you if you accidentally damage property that isn't part of the vehicle service you're providing.
Is garagekeepers legal liability required by law?
Garagekeepers coverage is not legally mandated, but it's a recommended protection for any business that handles and stores customer vehicles because it covers a gap in a business's general liability policy.
Get garagekeepers legal liability insurance with Progressive Commercial
We're the #1 auto insurer in America* and a leader in business insurance, offering specialized coverage for tow trucks, garages, and other small businesses that store vehicles. Call today to speak with an insurance expert or start an online quote to get the protection you need.
