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What is Garage Keepers coverage?

Updated: Nov 23, 2022

If you own an auto shop or garage in Texas, then your business needs a proper auto shop/garage policy.

This includes:

  • Dealers

  • Auto Repair

  • Body Repair Shop

  • Paint Shop

  • Etc.

Below is a guide that will help navigate what types of insurance your business needs.

Garage Liability

Garage Liability serves as your primary source for insuring the liabilities of running your business.

However, this can leave a large gap in your operations and that is where Garage Keepers comes in. This is an optional coverage to General Liability policy that is designed for the auto industry.

GarageKeepers

GarageKeepers is an option to a general liability policy that helps cover your customer's vehicle when it is in your care and custody. The would cover damages to vehicles when you are at fault. Coverage applies like a regular auto policy with a deductible per vehicle, and coverage amounts are adjustable per auto and per lot.

Garage Keepers: Legal Liability vs. Direct Primary

Legal Liability is a type of GarageKeepers policy that helps cover claims you are liable for: damaging the customers car, etc. You are legally liable to pay as it is your fault.

Direct Primary is the beefed up version of the Legal Liability GarageKeepers option. Essentially Direct Primary covers you no matter if it’s your fault or not, and the vehicle is in your possession at your lot. These are two specific things: weather and theft. If a car is on your lot and weather damages, or someone steals this is technically not your fault. However, since it is on your lot, the client may want to sue or want to file a claim against you. This covers everything legal liability does PLUS those not-at fault incidents

The main thing about direct primary is that it is designed to help retain customers. Also direct primary covers two additional things that are typically not included with legal liability (these factors are hard to be legally liable for, therefore not included unless you have direct primary): Weather and Theft. These are the two factors that apply to this option the most.


TexPro Insurance partners with some of Texas’ best garage insurance companies. Please contact us, and we will help you every step of the way.

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