If you own or operate an auto service business—such as a repair shop, gas station, car wash, or parking garage—then garage liability insurance is a must. This type of policy protects your business from financial losses related to bodily injury or property damage caused by your operations or employees.
Even a small accident on your premises can result in expensive lawsuits. Garage liability insurance helps ensure you don’t have to pay those costs out of pocket.
What Does Garage Liability Insurance Cover?
Garage liability insurance provides coverage for:
- 🧍 Bodily injury: If a customer is injured on your property or due to your services
- 🚘 Third-party property damage: If your employee damages a customer’s vehicle or other property
- ⚖️ Legal fees: Costs associated with defending your business in court
- 🏥 Medical expenses: If someone is injured because of your operations
📌 Important: Garage liability insurance does not cover damage to your own business property or vehicles. For that, you need separate policies like garagekeepers insurance or commercial property insurance.
Is Garage Liability Insurance Required?
That depends on your location and type of business. Many states require it for businesses that operate in the automotive service industry. Even if not legally required, it’s a smart investment because:
- Auto services face a high risk of accidents and lawsuits
- Legal defense costs alone can bankrupt a small business
- Many vendors, landlords, and financial lenders require proof of insurance
💡 Pro tip: Check your local regulations and consult with an insurance agent to understand your obligations.
How Much Does Garage Liability Insurance Cost?
Garage liability insurance typically costs between $500 and $5,000 per year, depending on:
- Business size and revenue
- Services offered (e.g., oil changes vs. body repair)
- Location and number of employees
- Coverage limits and deductibles
You may be eligible for discounts if you have a good claims history or bundle it with other commercial policies.
Final Thoughts
If you’re in the business of servicing vehicles or operating a facility where cars are present, garage liability insurance is a critical form of protection. It shields you from expensive lawsuits, medical claims, and third-party damages, helping keep your business secure.
🛠️ Don’t wait for an accident to realize how valuable this insurance is. Speak to a licensed insurance agent today to get a customized policy that fits your business needs and budget.