Garage Insurance

Discover the importance of garage insurance and learn how it can help safeguard your business from various risks.

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Garage Insurance

As a business owner, you understand the importance of protecting your assets and investments. One critical aspect of safeguarding your company is having the right insurance coverage. This article will focus on garage insurance, specifically designed to address the unique risks faced by businesses operating in the automotive industry. Read on to discover the different types of liabilities covered under this insurance and how it can help protect your firm.


Types of Coverages Under Garage Insurance

Take a look at some coverages that are recommended for this industry:

1. Commercial Property Insurance

When you run a garage business, maintaining your physical business-owned assets is vital to its success. Commercial property insurance offers protection against damage or loss to your garage structure, equipment, tools, and inventory. For example, if a fire damages your shop or your tools are stolen, this coverage can help you cover the damaged or stolen property costs and get your business back on track.

2. Garage Liability Insurance

Garage liability insurance is a type of coverage designed to protect auto repair shops and garages from liability claims arising from third-party bodily injury or property damage due to the operations. Garage liability is unique in that it covers third-party liability arising from using a customer's auto left for service when test driving and injuries and property damage liability occurring on the premises. If a mechanic test-driving a vehicle runs a stop sign and hits another auto, this policy would cover the damage to that auto and bodily injury liability for the other driver involved. The vehicles left for service would be covered by Garage Keepers Legal Liability coverage. This insurance provides financial protection and legal defense for liability claims and lawsuits filed by third parties in relation to garage operations.

driver repair broken car on the road after a car accident

3. Garage Keepers Legal Liability Insurance

Garage keepers insurance is specifically designed to help protect businesses that are responsible for customers' vehicles left for service or repair. Whether you own an auto repair shop or a valet parking service, this coverage helps provide financial protection in case a customer's vehicle is damaged or stolen while under your care. If, for example, a vehicle is vandalized or involved in an accident while at your shop, garage keepers insurance can help cover the costs of repairs and other damages.

4. Workers' Compensation Insurance

Workers' compensation insurance is crucial for any business with employees, including garage owners. This coverage provides benefits to employees who get hurt at work or suffer an occupational disease. Suppose one of your employees gets injured while operating machinery in your auto repair shop or develops a health condition due to exposure to hazardous chemicals. In that case, workers' compensation insurance can help cover their medical expenses and a portion of their lost wages.

Benefits of Garage Insurance for Your Business

Ensure the protection and continuity of your business operations with these comprehensive benefits:

Business Continuity:

Unexpected events may disrupt your business operations and have a significant financial impact. Garage insurance helps safeguard your firm's financial stability by covering property damage, liability claims, and other unforeseen circumstances. This lets you focus on running your business without worrying about potential financial setbacks.

Customizable Coverage:

The insurance can be tailored to meet the specific needs of your business. It's advisable to assess your risks and select coverage options accordingly, ensuring you have the optimum protection for your operations and assets.

Professional Support and Guidance:

With this insurance, garage owners can access professional support and guidance from licensed insurance agents. They can help you navigate the complexities of insurance policies, assist with claims processes, and provide appropriate advice to ensure your business is adequately protected.

Garage Insurance Costs

Here are some useful pointers to help you gain a clear understanding of the costs associated with obtaining this insurance:


The primary cost is the premiums you pay to the insurance company. Premiums are calculated based on various factors, such as the size of your business, the type of services you offer, the value of your assets, your claims history, and the coverage and limits you choose. Premiums can vary significantly depending on these factors and the specific insurance provider you select.


Garage insurance policies often come with deductibles. A deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in. Typically, higher deductibles result in lower premiums, but it also means your business will bear a greater financial burden in the event of a claim. Consider your financial capabilities when selecting the deductible amount that works best for your garage.

Coverage Limits:

Insurance policies have coverage limits, representing the maximum amount the insurance company will pay for a claim. Higher coverage limits generally mean higher premium payments. It's important to carefully assess your company's needs and determine appropriate coverage limits to protect your assets adequately.

Policy Endorsements:

Depending on your business needs, you may require additional policy endorsements to enhance your coverage. These endorsements typically come at an extra cost. Examples of policy endorsements include adding coverage for hired and non-owned vehicles, business interruption, extending coverage to additional locations, or adding coverage for new services or operations.

Key Takeaways

Owning a garage business in the US comes with its own risks and liabilities. Garage insurance helps offer comprehensive coverage to protect your business from unexpected events that can have a significant financial impact. By purchasing different types of coverage, such as garage liability and garage keepers' legal liability insurance, you can mitigate potential risks and focus on growing your business.

Need help finding tailored garage insurance coverage? Talk to the licensed agents at today at 855-600-2384. Explore more options on the Insurance Advisor website and request comprehensive quotes, easy payment options, and helpful resources to guide you in choosing insurance for your garage.

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