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Garagekeepers Legal Liability Insurance
Garagekeepers Legal Liability insurance provides protection in case a vehicle is damaged by fire, theft, vandalism or collision.
Garagekeepers Legal Liability coverage is an optional coverage designed for business owners who offer towing services or operate service stations. It protects a customer's vehicle when you are keeping it at a covered location for parking or storing, or to perform service.
In Texas and Virginia, Garagekeepers Legal Liability coverage is called Storage Location insurance. In these two states only, On-Hook Towing insurance is then called Garagekeepers Legal Liability coverage.
Who needs garagekeepers legal liability insurance?
If your business offers towing or service station services, Garagekeepers Legal Liability coverage is for you because it protects you when you are storing customers' vehicles.
Limits, deductibles and other details
You must select limits for Garagekeepers Legal Liability coverage, which will determine the maximum amount of coverage available to you on a per-occurrence basis.
Whether one car or a garage full of cars is damaged while in your care, the total amount covered by Garagekeepers insurance is based on the limit you choose. You can select from a variety of options depending on your state, but the typical maximum available limit is $2,500 per occurrence.
You also must select a per-vehicle deductible, which is typically $500. This means you would pay the first $500 to repair or replace each vehicle, and your insurance company would pay the remainder.
Garagekeepers legal liability coverage example
You're called to tow a broken-down car late at night. The mechanic's garage is already closed, so you store the car in your shop overnight. Unfortunately, criminals break into your garage and vandalize the customer's car.
Garagekeepers Legal Liability insurance would pay to repair the damage caused to the customer's car, up to the limit you select.
Exceptions and restrictions
If you have more than one storage location, each location must be listed and documented separately and will be issued its own insurance.
You also must purchase Liability insurance and On-Hook Towing insurance to obtain Garagekeepers Legal Liability coverage.