Garage Keepers Liability Coverage

Companies in the business of storing customer vehicles need to be protected. Picture this scenario: you are a tow truck driver who is called to tow a car in the middle of the night. Since the mechanic’s garage is closed at this time, you must store the car in your shop for the night. A few hours later, someone breaks into your shop and vandalizes the customer’s vehicle. Garage Keepers Liability coverage is designed to offer protection for business owners who offer towing services or operate service stations, similar to the scenario described above. This coverage protects customer vehicles while they are kept at the business location for parking, storage or to perform maintenance or services in the event of fire, theft, vandalism, explosion or lightning.

  • Automotive and motorcycle dealers
  • Service stations
  • Restaurants, hotels and special event operations with valet parking
  • Private parking lots and structures and airport parking lots
  • Car washes
  • Other businesses that accept custody or control of vehicles belonging to others for a fee

Limits and Deductibles

Determine coverage limits by considering the average value of vehicles in your care multiplied by the average number of vehicles in your care at any given time. For instance, if the average value of your customers’ vehicles is $30,000 and you tend to have 10 vehicles on hand, then you should select a limit of $300,000. You must select a per-vehicle deductible (generally $500) that is to be paid by you in case of a damaging incident. Then, the insurer covers the remaining amount, up to your limits.

Potential Exclusions

Please contact Market Financial Group for a no obligation policy review to analyze if your policy contains the following exclusions: contractual obligations, theft by the insured, defective parts or faulty work, loss to sound reproducing equipment, unless it is permanently installed, loss of CDs and tapes, loss to sound receiving equipment (CBs, mobile radios and telephones), unless it is installed in the dash or console, and radar detection equipment

Market Financial Group, can help you every step of the way. Contact us today to get started +1 888 459 3301.

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