Garage Keepers Liability

This optional coverage is designed for business owners who offer towing services or operate service stations. It protects a customer’s vehicle when you are keeping it at a covered location for parking or storing, or to perform service.

Limits and Deductibles

Whether one car or a garage full of cars damaged while in your care, the total amount covered by Garage Keepers insurance is based on the limit you choose.

Per-occurrence limit

The per-occurrence limit is the total amount of coverage you’ll have for every car under your care that is stolen or damaged in a single incident. It’s basically the total cost of damage for one event that your insurance will cover.

You can select from a variety of options depending on your state, but the typical maximum available limit is $2,500 per occurrence. You also must select a per-vehicle deductible, which is typically $500.

Per-vehicle deductible

The per-vehicle deductible is the amount you’d pay out-of-pocket for each vehicle impacted by an event, before your insurance coverage would take over and cover the rest of the claim.

Exceptions and restrictions

• If you have more than one storage location, each location must be listed and documented separately and will be issued its own insurance.

• You also must purchase Liability insurance and On-Hook Towing insurance to obtain Garage Keepers Legal Liability coverage.
This coverage is typically purchased as an add-on to an existing garage liability policy, which is similar to a general liability policy.