What Does Garage Keepers Insurance Cover


Garage keepers insurance covers clients who own towing businesses, auto shops, or car dealerships. When third parties park in a client’s garage to get repairs on their cars or vehicles, your client may want to purchase a different insurance for those vehicles. Whether they worry about damaged or stolen vehicles, having garage keepers insurance can help them with various issues. Knowing exactly what this insurance covers is one way for clients to plan ahead for the future and for you to assist them in finding the right choice.

Finding Ways to Benefit from Garage Keepers Insurance

Owners of towing businesses, auto shops, and detailers could benefit from this coverage when fires or other incidents happen without warning. According to Consumer Reports, fires contributed to over $1.1 billion worth of car damage from 2014 to 2016. Garage keepers insurance can fulfill your client’s need for protection for all the vehicles in their care as a business owner.

With so many options, understanding what you need to know about garage keepers insurance at Cochrane can seem like a tricky question to answer. However, they may want to get a few types of coverage. Garage liability insurance is sometimes a hybrid policy that includes general liability.

Understanding Per-Occurrence or Per-Vehicle Rates

When a client works in car repair, they may have dozens of vehicles in their shop at one time. They can get a per-vehicle deduction to reduce the financial risk of storing that many vehicles. This deduction outlines what they would need to pay out of pocket if any incident occurs before relying on insurance to pay for the rest of the damage.

The garage keepers insurance that Cochrane offers also has a per-occurrence limit, the total amount the insurance will cover for one incident. It covers every car under their control and custody.

Understanding Legal Liability Coverage

Garage keepers coverage at Cochrane extends to legal liability coverage. This kind of insurance protects your clients when an employee breaks or damages a part of a vehicle. The damage can range from a broken window to a more serious incident. Cochrane’s garage keepers insurance helps to fill in for property damage to a customer’s vehicle, which is something typical garage liability insurance may not cover.

Understanding Direct Excess Coverage

Direct primary coverage focuses on protecting stolen or vandalized vehicles in any scenario. However, direct excess coverage only occurs once your client’s customer has exceeded their auto insurance limit. This method of coverage for garage keepers insurance may even cover the whole of the claim if your client’s customer does not have any auto insurance.

Picking the Right Garage Keepers Insurance

There are a few scenarios where this policy does not cover your client, such as replacing the personal property within the vehicle or when the claim happens because of a bad repair job. Talking honestly with your client about what garage keepers liability insurance they need can help them understand why this kind of insurance can help safely cover their customers’ vehicles.

About Cochrane & Company

For more than six decades, Cochrane & Company has been proudly at the forefront of the insurance industry. Our experience has enabled us to innovate in powerful ways, reimagining the E&S market, and providing technology solutions that make it easy to do business with us. Licensed in all 50 states, we proudly serve clients across the nation, providing personalized and powerful solutions to help you become an even better partner for your clients. Speak to one of our experienced professionals today by calling (855) 967-0069.


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