What Does Garagekeepers Insurance Cover?

If you own an auto repair shop, body shop, dealership or any business that takes temporary custody of customers’ vehicles, you may carry a risk that standard commercial auto policies may not adequately address. When a customer hands you their keys, you take on a duty to care for that vehicle. Garagekeepers insurance can offer financial safeguards if something goes wrong with a vehicle in your custody or control.

The Core of Garagekeepers Insurance

Garagekeepers insurance can be beneficial if a customer’s vehicle is damaged or stolen while in your possession. Coverage can apply to vehicles you do not own but are temporarily in charge of, such as for service, repair, storage or sale.

Legal Liability vs. Direct Primary

Legal liability coverage can apply when you are found legally responsible for the damage. If the cause is outside your control, a customer may be left without a payout.

On the other hand, direct primary coverage can cover the payout regardless of fault. A hailstorm is nobody’s fault, but direct primary may still cover the customer’s vehicle. It can be the stronger option if you want to maintain your reputation and relationships with your customers.

Protect Your Shop and Your Customers

A single incident involving a high-value vehicle may create a financial burden that disrupts your entire operation. Garagekeepers insurance can close that coverage gap and help your business stay on solid financial footing.

Contact INM Insurance Services, Inc. to review your coverage options and find a policy that fits your operations. We proudly serve businesses in Huntington Beach, CA.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.