Garage Liability and GarageKeepers Insurance

Do you own one of the following: general auto shop, auto body shop, tune up shop, quick lube shop, paintless dent repair, mobile windshield repair, brake and muffler shop, accessory and undercoating, tire shop, motorcycle repair, boat repair, RV repair, mobile detailing, full service car wash, truck, tractor and trailer repair.... All of these are examples of a business that needs insurance. Coverage for these businesses can be complicated but Denver Insurance is here to help!

Garage Liability is the basic policy and provides coverage for bodily injury and property damage that happen in the insured’s business. The policy provides coverage for Non-Owned and Hired Auto. Examples of incidents that could potentially be covered under Garage Liability include:

  • Failure to tighten a lug nut, which leads to an accident. Damage to the other person’s car and their injuries could be covered under Garage Liability.

  • A customer trips on an extension cord in the repair shop.

Garage Liability excludes property damage for property in the shop owner’s control, care or custody. But there is an option to add coverage for your customer's vehicles. It's called GarageKeepers coverage.

In the simplest of terms, GarageKeepers coverage offers coverage to the customer’s vehicle if it is damaged while in the control and care of the shop. A few examples could include:

  • Hail damage

  • Another driver hitting the customer’s vehicle

  • Accidents that occur while a shop employee test drives the customer’s car.

  • Theft of a customer’s car

GarageKeepers options:

(1) Direct primary, (2) Direct Excess and (3) Legal Liability

(1) Direct Primary is the best coverage. The shop owner does not need to be at-fault for this coverage to pay. This coverage will be primary to any other insurance (usually the customer’s insurance).

(2) Direct Excess will cover damage to the customer’s vehicle that is not covered by the customer’s auto insurance i.e. deductible, damage above limits.

(3) Legal Liability will pay for losses to the customer’s vehicle when the garage is legally obligated (at-fault).

Your business is your livelihood! Contact Denver Insurance to make sure that you are properly insured. We serve the Front Range and all of Colorado.