Garage Liability Insurance Coverage Explained

What is Garage Liability Insurance?

Garage Liability Insurance covers the legal liability of franchised and non-franchised automobile, truck, truck-tractor, motorcycle, recreational vehicle, and trailer dealers for claims of bodily injury (BI) and property damage (PD) from business operations. Garage Liability Insurance includes two separate insuring agreements, “who is an insured” provisions and “limit of insurance” provisions—one dealing with garage operations involving the ownership, maintenance, or use of autos and the other dealing with all other garage operations.

What is Garage Insurance?

Garage Insurance offers wide-ranging financial protection for automotive businesses. Like a garage liability policy, it covers legal liability coverage for bodily injury, property damage, and physical damage to a customer’s vehicle in the business’s care (often through Garage Keepers Liability insurance).

What Businesses Does Garage Liability Insurance Cover? 

We recommend Garage Liability coverage to businesses in the automotive industry that deal with customer vehicles and face potential legal liabilities as part of their operations. These include:

  • Car Dealerships: Places that sell new or used cars, motorcycles, trucks, etc.
  • Service Stations: Businesses that offer fuel, maintenance, and minor repair services.
  • Repair Garages: Workshops that provide more extensive repair services, from engine work to vehicle bodywork.
  • Body Shops: Specialized repair garages that focus on the body and aesthetic parts of the vehicle.
  • Towing Services: Companies that tow vehicles may also store these vehicles temporarily.
  • Parking Garages and Lots: Places that offer parking services, where vehicles are temporarily kept under the business’s care.
  • Car Washes: While primarily offering cleaning services, they also temporarily control a client’s vehicle.

Any businesses directly involved in the care, custody, or control of customer vehicles are susceptible to risks and liabilities that Garage Liability Insurance protects.

What Does Garage Liability Insurance Cost?

The cost of Garage Liability Insurance is influenced by several factors unique to each business, making it a tailored solution rather than a one-size-fits-all approach.

These factors can include:

  • Size of your operation
  • Types of services you offer
  • Number of employees
  • Volume of customer vehicles you handle
  • Location of your business

Additionally, the level of garage coverage you select—ranging from basic liability to comprehensive policies that include Garage Keepers insurance and other endorsements—will also affect your premiums.

What Does Garage Insurance Cover?

Although general liability exposures of garage automobile risks can be covered under commercial general liability insurance, specific exposures common to garage risks are excluded and left unprotected. Specifically, these exclusions remove any coverage for automobile damage left for repair, service or storage with the Insured. Garage automobile insurance policies are designed to cover exposures specific to garage risks, including those excluded by other policies. Common coverage to garage automobile policies is the following;

  • Third-party liability
  • Accident benefits
  • Loss of or damage to owned automobile
  • Uninsured motorist coverage
  • Legal liability for damage to a customer’s car while in the care, custody or control of the Insured

Like other automobile insurance policies, various endorsements can be added to ensure coverage is as complete as possible for the operation’s specific needs.

Get Aligned With Appropriate Garage Insurance Coverage with ALIGNED Insurance

Your garage operations require a solution covering every facet of your automotive business. ALIGNED Insurance is at the forefront of delivering customized Garage Liability Insurance explicitly tailored for businesses involved with customer vehicles—sales, service, or storage.

At ALIGNED Insurance, we specialize in helping companies like yours get comprehensive business insurance tailored to their unique needs. To learn more about how garage liability insurance coverage can protect your business, please contact us and speak with an ALIGNED insurance advocate. Or, get your quote today!

More About ALIGNED Insurance

ALIGNED specializes in delivering insurance and risk management solutions exclusively to Canadian businesses. Through our 11 points of differentiation and expertise, we deliver unmatched value to our growing portfolio of clients from all industries that range from small to large organizations.

We offer all of the following products:

Management Liability:
Business auto policy
Casualty insurance
Liability insurance
Motor carrier policy
Board Insurance / Directors and Officers (D&O) Insurance
Employment Practices Liability (EPL) Insurance
Fiduciary Liability Insurance

Property Insurance – Including Business Interruption & Extra Expenses
Machinery Breakdown/Boiler & Machinery Insurance
Course of Construction (COC)
Wrap-Up Liability Insurance
Commercial General Liability / CGL Insurance
Pollution Liability Insurance
Commercial Automobile & Fleet Insurance
Umbrella Liability Insurance
Cyber, Hacking & Privacy Liability Insurance
Crime/Fidelity/Employee Theft Insurance
Professional Liability/Errors & Omissions (E&O) Insurance
Kidnap & Ransom Insurance
Representations & Warranty Insurance
Trade Credit

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