This is How Garage Keepers Insurance Covers You When You’re Not There

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This is How Garage Keepers Insurance Covers You When You’re Not There

By Zuma Insurance Services | June 20, 2018

Garage Keepers Insurance


If you run a business that involves taking care of cars, chances are you have some sort of garage liability insurance in addition to your regular business insurance policy. Garage liability is important for those times when your shop is open and a customer is hurt while on the premises. However, it is possible for things to go wrong after you and your employees are done for the day, and one way to protect yourself and your business is by making the investment of a garage keepers insurance policy from Zuma Insurance.

Garage Liability Insurance

What is Garage Keepers Insurance?

Garage Keepers Insurance is meant to go a step further than regular garage liability insurance and help protect businesses who have a customer’s car for servicing or other reasons. Like other types of insurance, the level of protection is related to who is at fault for the damage. While garage liability covers injuries to customers, garage keepers insurance is for damage to the vehicle while in the business’s care. In addition to auto repair shops, other businesses that may want garage keepers coverage include:

  • Hotels or restaurants that provide valet services
  • Tow truck drivers
  • Car dealerships and more

If your business takes responsibility of other people’s vehicles, garage keepers insurance is something to consider.

garage keepers liability

Levels of Coverage to Consider

There are three main levels of coverage with garage keepers insurance. These include:

  • Garage Keepers Liability
  • Direct Primary
  • Direct Excess

Of these, the most common is garage keepers liability. This type of insurance offers coverage for a vehicle that gets damaged when it is in the care of a business that has treated the vehicle negligently in some way. For example, if a valet driver drove recklessly while parking a car, or an auto mechanic fails to properly secure a vehicle after business hours and the car is damaged, are covered under garage keepers liability insurance.

Direct Primary coverage covers the same types of situations as liability, but does so regardless of fault or negligence. For example, things like storm damage, or damage that happens to the vehicle, despite every precaution to prevent damage, is covered under this level of garage keepers.

Direct Excess coverage is similar to direct primary, except that it considers whatever qualifying coverage may be available, from either the business or the vehicle owner, and subtracts that coverage before beginning payment on a claim.

Protection for a Budding or Thriving Business

Starting up an auto repair shop isn’t easy, and neither is sustaining such a business, regardless of your business savvy or skills as a mechanic. You may vow to be careful, and try to get by with minimal insurance coverage, but in doing so you may lose peace of mind in knowing you are protected against situations out of your control.

Takeaways for Garage Keepers Coverage

  • There are different levels of coverage options to meet your needs and budget
  • Helps keep your business protected against employee negligence and/or natural disaster
  • Something to consider at any stage of your business

At Zuma Insurance in Montebello, CA, our experience in helping customers with their insurance needs for auto repair shops, contractor insurance, as well as other business insurance types helps us to analyze the needs of each business specifically, while keeping in mind the level of risk they face and helping them to find good policy terms within their budget. Whether your auto repair shop is just getting off the ground or is a raving success in your neighborhood, having the right coverage at the right time can make the difference between staying strong or going under.

If your insurance policy for your California auto repair shop doesn’t yet include garage keepers insurance, it may be time to reconsider your options. To learn more about what we can do for you, contact Zuma Insurance today.