What is a Garage Keepers Insurance Add-On Policy?
You might not describe yourself as a “garage keeper,” but that’s the name the insurance industry uses for people in your position. Garage keepers insurance is an add-on (also known in garaging insurance as an endorsement) that can be included with a business owners policy or BOP (also called property & liability insurance) or other types of insurance.
A garage keepers insurance policy provides protection in situations where a customer’s vehicle is under your care, custody, control, or possession. In other words, that legal phrase means they’ve handed you the keys and the car is either awaiting service, being serviced or tested, or awaiting pickup by the customer.
With garage keepers insurance, if the car is damaged during that period, the endorsement to your business owners policy can protect your business. And, of course, that means it protects your customers, too.
In this guide, we’ll explain everything you need to know about garage keepers coverage, including what it does and doesn’t cover, the differences in some of the policies, and, of course, the all-important garage keepers insurance cost, so you know what you’ll pay for your coverage.
Let’s dive into the specifics of garage keepers insurance. But first, it’s helpful to know a little about property and liability insurance.
Understanding Property and Liability Insurance in General
Property and liability insurance (i.e., a business owners policy) provides coverage that’s a combination of general liability insurance and commercial property insurance. This includes property damage, bodily injury, an owned or leased space, and more. It’s common for small businesses to get these essential coverages in one policy. It just makes life easier for the business owner or decision-maker responsible for the company’s financial protection.
Combining these two important kinds of protection provides multiple advantages, including:
So, having property and liability insurance is beneficial, even if you don’t add a garage keepers insurance endorsement.
What is Garage Keepers Insurance and What Does Garage Keepers Insurance Cover?
A garage keepers insurance endorsement to your business owners policy has two different components, both of which biBerk covers. The first is legal liability. It protects your business if one of your employees makes a mistake that causes damage to a customer’s vehicle. Imagine that a mechanic accidentally scrapes the side of a customer's car while backing it out of a bay. The repair cost can be covered by a garage keepers endorsement.
Direct primary garage keepers coverage is the second component. It addresses damage that results from severe weather or theft. As long as you attempted to protect the vehicle prior to the incident, you may be covered. For example, let’s say strong winds topple a tree and it falls on your building, damaging the service area and some cars parked there. Your garage keepers insurance may cover the vehicle repairs.
These aspects of a garage keepers insurance coverage add-on to a business owners policy work together to protect your business whenever you’re in possession of a customer’s vehicle.
Garage Liability vs. Garage Keepers Insurance
The name garage liability insurance sounds like garage keepers insurance, but it’s not the same thing. Garage liability insurance is designed to cover bodily injuries or property damage caused by the operation of a garage business. In other words, a garage liability insurance policy is not focused on customer vehicles you have in your possession, but on your operations more generally.
A common example used to explain the difference between garage keepers insurance and garage liability insurance is a situation where your mechanic is working on a customer’s car, takes it out for a test drive, and is at fault in an accident that injures another driver and damages their vehicle. Garage keepers insurance covers damage to the car your employee is driving (the customer’s vehicle), while garage liability insurance covers costs associated with the accident and resulting liability (settlements, judgments, court costs, etc.). That concept is new to some garage business owners and can be a little confusing, so don’t hesitate to contact us for clarification!
What Does a Garage Keepers Insurance Add-On Cost?
You’ve decided you need garage keepers insurance but want to know what to budget for it. A few factors affect the cost of a policy. Where is your business located? What’s your annual revenue? What are the types and numbers of vehicles you repair or service? These are the kinds of things we’ll need to know to price your policy.
When you contact biBerk for a quote, we’ll ask you all the pertinent questions to make sure we give you an accurate quote that suits the needs of you and your business. If you have any other questions about this type of policy, you can talk to our qualified and friendly insurance experts. They’ll be more than happy to answer them!
Where You Purchase Your Business Owners Policy and Garage Keepers Insurance Matters
Having a business owners policy and garage keepers add-on coverage backed by the right company is important. You and your customers will want to know that your insurer has your back.
biBerk is part of Warren Buffett's Berkshire Hathaway Insurance Group with millions of satisfied customers, more than 75 years of insurance experience, and $38 billion in paid claims in 2020. That means we’ve got the experience and financial resources to protect you and your business properly.
There’s more to insurance coverage than just searching for the best garage keepers insurance cost. The last thing you want when a customer’s car is damaged is to learn that your insurance company can’t cover and support you the way you thought they would. When it comes to finding garage keepers insurance companies that care, you’ll learn that we stand by you if the unexpected happens.
Garage Keepers Insurance: Peace of Mind for Business Owners and Other Stakeholders
Garages are active environments where risks are ever-present and mistakes can and do happen. Even the most cautious team member can accidentally damage a vehicle. If they do, who’s going to pay for the repair? With garage keepers insurance, the expense may be covered by your policy.
That reassurance is important to you, as a business owner, but the fact that you have adequate insurance coverage is also essential to other stakeholders. Take a vehicle fleet manager who uses your services, for example. They want to know that if an incident occurs, your garage keepers insurance will handle it promptly and fully—whether one vehicle or several are damaged.
A company’s risk management expert or insurance advisor will also be glad to learn that your business has garage keepers insurance. First, it simply shows that you’re a responsible owner who cares about the well-being of your customers and your company. Second, like a fleet manager, a risk expert or insurance advisor will appreciate that you’ve taken steps to ensure incidents get handled the right way.
So, while your garage keepers policy is designed to protect your customers and your company, it also can open the door to (or, at least, support) future business opportunities. People talk, and when they hear that an incident occurred with one of your customers but you stepped up and handled it professionally, they’re likely to share that information.
It’s best if vehicles in your care don’t get damaged, of course! But if they do, having insurance from a reputable provider says a lot about your business and you as the owner.
Don’t wait. Get the garage keepers insurance you need today so you’re ready for the unexpected.