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What Is Garage Keepers Insurance?

Garage keepers insurance is a specialty insurance coverage designed to protect any business that owns and operates a garage, from losses tied to the customer vehicles it services.

This type of policy is different from a garage liability insurance policy, which covers property damage or bodily injuries resulting from an accident related to garage operations, similar to many commercial general liability policies.

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What Does Garage Keepers Insurance Cover?

A standard garage keepers policy typically includes three primary types of coverage:

Legal Liability

Legal liability is a type of coverage that is most often included in garage keepers’ insurance policies. This protects customer vehicles following damages that result from carelessness by the insured party (your business).

For instance, legal liability coverage would help pay for damages that occur after one of your employees tries to fix (or test drive) a client’s car. By law, this employee would be responsible or “liable” for the damage.

Direct Primary

Direct primary coverage protects customer vehicles regardless of who is at fault for damages. In the event of a loss not caused by the insured (e.g. losses due to theft or weather-related incidents), direct primary coverage will pay for said loss. Following incidents of theft, customers have no need to file claims and can rest assured that their vehicles are always protected.

Direct Excess

Direct excess coverage isn’t always offered in garage keepers’ insurance policies but can be extremely useful in some cases. Similar to direct primary, this coverage protects an insured party from losses to customer vehicles no matter who is liable.

However, direct excess is different from direct primary coverage because if an insured isn’t responsible for a loss, it will pay for damages above the policy’s coverage limits. Direct excess is most helpful in cases where customer vehicles sustain severe damages due to unprecedented events. For instance, should a fire destroy both a customer’s truck and your automotive business and the former carries comprehensive coverage for his vehicle, direct excess may help pay for any damages above the limits of the customer’s policy.

Garage Liability

Garage liability insurance is a policy that covers bodily injury or property damage caused by an incident out of garage operations. The policy refers to the ownership, maintenance or use of locations for garage business operations. This kind of coverage also includes the ownership and use of the autos, as well as maintenance. This kind of insurance is helpful to car dealerships who are looking to cover all autos on their lots, including cars being worked on in their mechanical garages.

Garage Insurance

If your business sells, services, stores, or parks automobiles, your general liability insurance coverage may not be enough to protect you from lawsuits. Car dealerships, body repair shops, and gas stations are specialty businesses with special insurance needs. By combining parts of a commercial general liability policy with parts of a business auto policy, garage insurance guards against the unique risks associated with your automotive business including claims for injuries, mistakes, or property damage resulting from work you have done or unknowingly defective parts that you may have installed.

Who needs Garage liability insurance coverage?

Businesses that offer service station or towing services need garage keepers liability coverage as it protects you when you are storing a customers vehicle. Garage Liability Insurance is a liability insurance product created for people who regularly and temporarily have possession of other people’s vehicles. It was designed to cover costs associated with unfortunate and unforeseeable events, faulty parts or warranties.

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  • Wagley Agency LLC
  • 2054 I49 N Frontage Road
  • Grand Coteau, LA 70541
  • Call Us: 337-345-4410


Wagley Insurance Agency is the best! We have been insured through it for our business and personal insurance needs for many years. It has been so awesome having an insurance agent who is prompt, knowledgeable, efficient, and friendly and always finding us the best deal. Our agent, Andrew Wagley, is always there to give great advice and helping us to have the right coverage that we need. Also, our commercial account manager, Robert Smith, has just been incredible to work with over the years! He always responds timely to questions or needs I have. He is very polite and truly cares about his clients.

Jeanne from Duson, LA

I have always been able to count on the staff at Wagley Agency to handle all my insurance needs. Every time that I have an issue, they go above and beyond in getting it resolved! Wagley Agency is the insurance company to be with!

Connie Harvey from Baton Rouge, LA

Managing a small non profit business I have to wear a lot of hats. One of my least favorite duties is obtaining the required insurance coverage for the facility. With Wagley Insurance Agency, we always get coverage options, a competitive price and outstanding service rolled into one package. Andrew Wagley and Robert Smith do an awesome job making the initial application and yearly renewal process seamless and stress free.

Faye Simpson, Alexandria, LA

Our company has always been able to count on the staff at Wagley Agency to handle our Insurance needs. The support we receive is second to none~ Efficiency and Dependability are words to best describe our experiences…. Wagley Agency truly exceeds our expectations in an Insurance Agency

Tonya & Tammy, Opelousas, LA

Wagley insurance company has been phenomenal and providing me my insurance needs and I would recommend them they are very personal and professional excellent company

Becky in Denham Springs, LA