Understanding Garage Insurance


Garage liability insurance or garage insurance is an umbrella type policy providing businesses within the automotive industry day-to-day coverage. This insurance enables car-focused organizations to add an extra layer of security to their general liability policy. Garage insurance includes compensation for injuries and property damage from direct garage operations that most commercial liability insurance cannot cover.

The business owner must verify that the garage insurance is not a replacement of their basic business liability insurance but an extension.

Garage insurance includes coverages for customer injuries and other liabilities depending on the chosen limits of the policy. This insurance primarily consists of an employee dishonesty provision for theft or vandalism committed by a worker of a customer’s car. Companies can also upgrade this policy to premium by adding autos used for business conduct, such as courtesy vans and delivery trucks. Moreover, protections against damaged parts or products by the business and faulty parts installed on a client’s vehicle can be added.

If garage insurance is new to you, it is also essential to know that this insurance does not offer coverage for the following:

  • tools
  • building
  • personal or business property of the policyholder
  • vandalism
  • stolen vehicles
  • damage from naturally occurring events (e.g., hail)
  • accidents to the customer’s cars onsite for service

On the other hand, garage insurance is different from garage-keeper insurance. The latter covers the property damage incurred when the client’s car is under the policyholder’s care. Garage-keeper coverage includes protection from damages during road test drivers while storing the vehicle during non-working hours. It also compensates for vandalism and theft of a customer’s car.

A reputable insurance provider can help you understand how garage insurance coverage works and its importance. ISU Armac, a California-based insurance company, can assist clients with insurance, including garage coverages. Call us at (760) 241-7900 or email info@isu-armac.com to inquire.