What this coverage is
Garage liability insurance combines liability protections tailored to automotive businesses. It commonly addresses third-party bodily injury and property damage arising from garage operations, including the use of vehicles in the course of business.
Automotive businesses often pair garage liability with garagekeepers coverage, which helps protect customers' vehicles left in their care, custody, or control. Together they address exposures that standard general liability and auto policies may not fully cover.
Who commonly needs it
Businesses that sell, service, repair, store, or park vehicles for customers commonly carry garage liability and garagekeepers coverage.
Where this coverage commonly fits
Operational — coverage tied to how a business physically operates day to day — its property, vehicles, and equipment. Garage liability commonly fits automotive businesses that service, repair, or sell customer vehicles.
- Auto and vehicle dealers
- Repair and body shops
- Service and maintenance garages
- Valet and parking operations
- Towing and recovery businesses
What it may cover
- Third-party bodily injury from garage operations
- Third-party property damage from garage operations
- Liability from the use of dealer or service vehicles
- Customers' vehicles in your care, via garagekeepers coverage
- Legal defense costs for covered claims, subject to terms
What it typically excludes
- Faulty workmanship guarantees beyond covered damage
- Damage to your own buildings and equipment
- Employee injuries, which workers compensation addresses
- Intentional or criminal acts
- Liability above selected limits
Hypothetical claim scenarios
These illustrative examples are for general understanding only. Coverage depends on the specific policy terms, conditions, and exclusions.
Test-drive accident
An employee causes an accident during a customer test drive. Garage liability may help respond to the third-party claim, subject to policy terms.
Damage to a customer's car
A customer's vehicle is damaged by fire while stored at the shop. Garagekeepers coverage may help with the covered loss, subject to terms.
Customer injury on the lot
A visitor is injured on the dealership lot. The liability coverage may help respond to the resulting claim and defense costs.
What commonly affects cost
- Type of automotive operation
- Number of vehicles handled and lot size
- Garagekeepers limits and valuation basis
- Employee driving records and safety practices
- Claims history and selected limits
How much does it cost?
Pricing for garage liability insurance varies widely from business to business, so the only reliable figure is a quote tailored to your operation.
- Garage Liability InsuranceVaries by location, vehicles, and operations — a quote is required
These are general national averages shown for comparison only — not a quote. Actual premiums vary widely with underwriting and depend on the factors above and the specifics of your business, including size, revenue, location, claims history, and the limits you choose. See how we estimate costs.
Industries where this coverage is common
Coverage needs vary business to business — most companies consider this protection regardless of industry. These are simply the industries where we see it most often.
See how this coverage works in your industry
A few examples from the business types we cover — this coverage applies well beyond the industries shown here.
Don't see your business type? Browse all industries we cover — coverage recommendations are tailored to every operation.
Frequently asked questions
What is the difference between garage liability and garagekeepers?
Garage liability commonly addresses your liability to third parties from operations, while garagekeepers helps protect customers' vehicles in your care, custody, or control.
Who needs garage liability insurance?
Auto dealers, repair shops, service garages, valet operations, and towing businesses commonly carry it because of the unique vehicle exposures they face.
Does it replace commercial auto coverage?
Garage policies are tailored to automotive businesses and can address many auto exposures, but the right structure depends on your operation. Review with your agent.
Are customers' vehicles covered?
Customers' vehicles in your care are commonly addressed through garagekeepers coverage, which can be written on different bases such as direct or legal liability.
Does garage liability cover employee injuries?
No. Employee work-related injuries are generally handled by workers compensation, not garage liability.
How do I get a quote for this coverage?
Call The Southern Agency at 1-800-777-1872 or request a quote online, and an advisor can help tailor coverage to your business.
Related coverages
- Crime Insurance Coverage for losses from employee dishonesty, theft, forgery, and fraud.
- Liquor Liability Insurance Liability coverage for businesses that sell, serve, or furnish alcohol.
- Environmental Liability Insurance Coverage for pollution conditions and environmental cleanup liability.
- Motor Truck Cargo Insurance Coverage for freight and cargo hauled by motor carriers.