Parking Lot Liability Insurance

Cars and trucks are extremely valuable assets and a lot of responsibility, which means they must be protected at all costs. Just like how motorists have auto insurance policies, parking lots, garages, and repair shops must also make sure the vehicles on their premises and in their care, custody and control are protected. That’s where parking lot liability insurance comes in along with a number of specialized insurance coverages for the parking industry. Keep reading to learn all there is to know about this niche business insurance that is custom built to meet the needs, prefernces, contractual obligations and budget of each parking lot owner or operator.

Parking Lot Liability Insurance
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What is parking lot liability insurance? 

Parking lot liability insurance, is a broad and commonly used term that in reality is atleast two separate insurance policies and products.  The first is garage liability insurance, which is a type of insurance designed with automotive based businesses, such as parking garages and parking lots in mind because unique exposures are created by operating a parking lot due to the business taking the care, custody and control of the customers vehicles from a legal responsibility perspective.  This specific exposure is also explicitly excluded in a commercial general liability, which is why the creation of the “garage auto” insurance product/policy was needed.  Separate and distinct parking garages and parking lots definitely still need commercial general liability insurance to cover the risk of bodily injury or property damage (excluding vehicles) to third parties.  A common parking lot commercial general liability claim would be a slip and fall.  Ultimately, parking lot liability insurance aims to protect automotive businesses from the risks that come with operating a business that involves vehicles. If structured correctly it can specifically cover most liability exposures associated with the daily operations or a parking based business.  With parking lot liability insurance, your insurance policy can help cover the costs of the lawsuit, as well as any potential medical expenses, settlements, judgements, damage caused to vehicles while they are parked at your business etc.

What Type Of Insurance Do Parking Lots Need?

Parking lots need a variety of specialized automotive based business insurance products that protect them from risk. Without a properly structured parking lot liability insurance program, a third party lawsuit or natural disaster could easily force you into financial ruin, bankrupting your operation and impacting your professional reputation.

Your parking lot liability insurance policy can be as comprehensive or as basic as you want it to be, but typically includes some or all of the following insurance products/policies:

  • Commercial general liability insurance: This projects your automotive business against claims of third party bodily injury (e.g. if a customer slips, falls, and breaks their ankle in your parking lot) or property damage (damage to a customer’s vehicle)
  • Commercial property insurance: This type of insurance protects your parking garage and the physical assets at the lot like structures, gates, payment processing machines etc. against insured perils like fire, flood, or theft.
  • Garage liability insurance: This type of insurance protects you against liability for physical damage to vehicles in your care, custoday and control.

Additional coverages parking based businesses may wish to include in their parking lot liability policy include:

Please note that parking lot liability insurance does not cover the belongings in a customer’s vehicle, such as clothing, money, electronics, or other items as those would be insured under customers personal insurance policies. 

Who needs parking lot liability insurance? 

Any parking based business, whether it be a parking garage or an auto body shop, would be wise to invest in parking lot liability insurance. This type of insurance provides specialized financial protection against the risks of automotive operations, including third party bodily injury and property damage. Other examples of businesses that might benefit from parking lot liability insurance are service stations, emissions testing centres, muffler repair shops, tow truck operators, oil change and lube shops, car dealerships, and automotive detailing shops. 

What are the benefits of having parking lot liability insurance? 

The main benefit of parking lot liability insurance is that it will protect you from the risks associated with operating an automotive business, from someone injuring themselves in your parking lot to a fire damaging your booth/equipment to allegations of responsibility for damage caused to customers vehicles. Without it, you would be left to pay for these unexpected cost of medical expenses, vehicle repairs, and legal fees out of pocket.

Get ALIGNED with the best Parking Lot Liability insurance on the market. 

You can call us at +1-866-287-0448. Click Here To Get A Quote or contact one of our Parking Lot Liability Insurance experts for information or with any questions you may have.

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