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Garage repair shop insurance covers situations where your client’s vehicles get damaged while it’s under your care

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Help safeguard your business with garage repair shop insurance.

As useful as standard business insurance policies may be, they aren’t always adequate for the specific risks that a garage repair shop faces. What sets your business apart from others is that you work on and store your customers’ vehicles. This exposes your business to many risk factors, but having a garage repair shop insurance policy in place may help protect your business.

Running a garage repair shop requires trust and responsibility. As garage owners, you’re not just fixing vehicles, you’re safeguarding your customers’ prized possessions. Garage repair shop insurance, also known as garage insurance, helps protect your business from financial losses due to accidents, injuries, or property damage.

What is Garage Liability Insurance?


Garage liability insurance goes beyond property damage and bodily injury.

Garage liability insurance is a specific type of coverage designed for businesses like auto repair shops. Garage liability insurance covers situations where a customer’s vehicle gets damaged while it’s under your care.

Garage liability coverage can include:


Imagine a mechanic accidentally scratches a car door during repairs. Garage liability insurance would cover the repairs.

Theft or vandalism

If someone breaks in and steals a customer’s car from your shop, this insurance would help cover the loss.

Natural disasters

A bad storm rolls through and damages a customer’s car parked at your shop. Garage liability insurance would kick in to pay for repairs.

Remember: Garage keepers liability insurance is separate from general liability insurance, which protects your business

from slip-and-fall accidents or other customer injuries on your premises.

What Additional Coverage Can Be Added to Garage Liability Insurance?


business covered by garage liability insurance

While garage liability insurance (or garage keepers liability insurance) covers the core risk of damage to customer vehicles, you can customize your protection further by adding optional specialty coverages:

Pollution Liability

Running a repair shop involves handling hazardous materials like oil, antifreeze, and solvents. Accidents can happen, and spills can occur. Pollution liability insurance covers the costs associated with cleaning up spills and preventing environmental damage.

Towing and Storage

Imagine a situation where a customer’s car needs to be towed due to an accident or because repairs leave it inoperable. Towing and storage coverage reimburses you for the expenses of towing and storing the vehicle until it can be retrieved.

Loss of Business Income

A major event like a fire or storm could force you to close your shop for repairs. Loss of business income coverage provides financial assistance to help cover your expenses and keep your business afloat during this downtime.

Tools and Equipment Coverage

Your shop relies on specialized tools and equipment. This coverage protects them from damage due to theft, fire, or other covered perils.

Cyber Liability

In today’s digital world, even repair shops can be vulnerable to cyberattacks. Cyber liability coverage can help with costs associated with data breaches or cyber extortion attempts.

These are just a few examples, and the specific coverages available may vary depending on your insurance provider. It’s important to discuss your specific needs and risk factors with an agent to determine the best combination of coverages for your garage repair shop. Contact us to share your needs with our agents.

Who Needs Garage Liability Insurance?

Garage liability insurance is a must-have for any business that stores, repairs, or transports customer vehicles. This includes a wider range of businesses than you might initially think.

Here’s a breakdown of who should seriously consider garage liability insurance:

Auto Repair Shops , Oil Change Shops, and Body Shops

This is the classic example. Any garage business that fixes vehicles needs this insurance to protect themselves from customer car damage while in their care.

Tire Dealerships

Whether you’re just changing tires or offering additional repair services, garage liability protects your business if a customer’s car is damaged during the service.

Tow Truck Operators and Towing Companies

The very nature of towing involves handling customer vehicles. Garage liability safeguards your business in case of accidents during towing or while a vehicle is in your storage yard.

Auto Detailing Services

Even seemingly minor services like car washing can lead to accidental damage. Garage liability provides a safety net for such situations.

Valet Parking Services

You’re entrusted with customers’ vehicles while they dine or shop. Garage liability protects your business if a car gets damaged under your care.

Emissions Testing Stations and Auto Glass Installers

These businesses handle customer vehicles during inspections or installations. Garage liability insurance is essential to cover any potential damage.

In short, if your business derives income from working with customer vehicles, garage liability insurance is a smart financial decision. It protects your business from significant financial losses and demonstrates professionalism to your customers.

How Much Does Garage Liability Insurance Cost?

The cost of garagekeepers liability insurance varies depending on several factors, including:

  • Location of your shop: Insurance companies consider areas with higher crime rates or more traffic accidents to be riskier, potentially leading to higher premiums.
  • Size and value of your typical repairs: If your shop specializes in high-end vehicles or complex repairs, the potential payout for a damage claim could be higher, reflected in your premium.
  • Your claims history: A history of past claims will likely increase your premium as you’re seen as a higher risk.
  • The amount of coverage you choose: Higher coverage limits (the maximum amount the insurance company will pay per claim) naturally come with a higher premium.

   What is garagekeepers liability insurance?

Garagekeepers liability insurance helps protect your customers’ vehicles under your care, custody, and control if they are damaged due to negligence.

    What types of specialty coverage can be added?

Depending on the operations of your repair shop you may want to consider coverage options such as body shop, repair shop, muffler shop, transmission repair, and tow truck insurance.

Protection from claims of faulty repairs.

You should also consider professional liability coverage that protects you against claims for damage to a car caused by mistakes and/or omissions by your staff. In extreme circumstances, this could include not just the cost of fixing the flawed repairs, but also costs that arise from a crash that’s blamed on the faulty repair.

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Garage/Repair Shop
Commercial General Liability / Garage Liability
Risk Factor

Your repair shop may be susceptible to many risks, such as claims due to bodily injury, property damage, personal injury, and more. For example, if a customer accidentally trips and falls while on the premises of your repair shop, you can become exposed to a potential lawsuit and held financially responsible for any injuries that result from the accident.


Commercial general liability insurance is an absolute necessity for every repair shop. This type of protection provides broad coverage for premises, operations, completed operations and advertising, and personal injury. It will also pay to defend any covered lawsuit or action regardless of its merit. Coverage can be purchased as a separate policy and can be tailored to your specific needs.

Commercial Property Insurance
Risk Factor

When a gas tank explosion causes an uncontrollable fire, your commercial property and everything within it can suffer a significant loss. This can have a detrimental effect on your repair shop business.


Commercial property insurance can help protect the property your business owns or leases, including things like equipment, inventory, furniture, and fixtures. Whether you own your building or lease your workspace, commercial property insurance can be purchased separately or can be combined with other necessary coverage to protect your business’ physical assets.

Property of Others - Garagekeepers
Risk Factor

The nature of your business means you’re responsible for valuable cars, trucks, and other automobiles. As a repair shop owner, you’re trusted to safeguard vehicles belonging to others. This responsibility brings with it potential liability of being held financially responsible for property damage caused to these vehicles while in your care, custody, and control.


You should purchase physical damage coverage, referred to as garagekeepers coverage, designed to help you protect your customers’ property and your business in the event that accidents, injuries, or property damage occurs. This protection covers the costs that arise from unfortunate and unforeseeable events, not bad workmanship, faulty parts, or warranties.

Inland Marine and Equipment Floater
Risk Factor

You’re constantly moving your tools from one area of your repair shop to another, exposing your business to potential loss due to damage or theft. And without your specialized tools and equipment, your repair job may come to a screeching halt.


You can purchase special equipment insurance designed to protect your tools and equipment on the move. The policy will cover equipment for a variety of losses, including fire, explosion, vandalism, theft, collision with other equipment or objects, and overturning.

Workers' Compensation
Risk Factor

If one of your employees receives an injury or becomes ill due to a work-related occurrence, you are required by law to have the proper coverage in place.


Workers' compensation protects your employees should a job-related injury or sickness occur during the course of employment. This coverage is required by law and may vary by area, so be sure that you understand your obligations for all physical locations where your business operates in and all physical locations where you hire your employees.

Business Auto Insurance
Risk Factor

As a repair shop owner, you have many exposures associated with your business vehicles–owned or leased. With a fleet of cars, trucks, vans, or other types of vehicles used in the course of business, a single accident can potentially put your business in financial jeopardy.


Business auto insurance provides coverage for vehicles owned or leased by a repair shop and provides coverage for bodily injury, property damage, and other exposures, and could include comprehensive and collision coverage as well.

Commercial Umbrella / Excess Insurance
Risk Factor

Losses and lawsuits are quite common in the repair shop business, and settlements can be substantial. If your business is found to be responsible for damage or injury, you could be facing a large liability loss that exceeds the basic limits of your standard policy.


You should consider purchasing a commercial umbrella insurance policy which provides higher limits, typically between $2,000,000 and $10,000,000, and often broadened coverages. Coverage is extended over various policies, including general liability insurance, business auto, and directors and officers liability insurance.

Coverage for your garage and lost income.

Remember to also look for coverage for lost income. If you have a fire break out at your garage, it’s not much use having an insurer pay all the costs of rebuilding the workshop if you lose all your customers in the meantime and your cash flow is irretrievably damaged. Having coverage for lost income may help your business survive a devastating loss so you can carry on.

Are you looking for garage repair shop insurance to help safeguard your business and your investment? Contact us to go over your coverage needs and options.

Find Your Coverage

We’re here to help you explore your coverage options.

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Contact Dream Assurance

Overland Park, KS

9300 West 110th Street Suite 275
Overland Park, KS 66210

Overland Park, KS

7500 College Boulevard
Overland Park, KS 66210

Email Us
 309-726-4412 fax

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