Commercial Insurance
Garage Liability
Liability coverage for repair shops and service businesses, including work on customer vehicles.
What It Is
Garage liability covers injuries and property damage arising from a garage business’s premises and operations, including certain auto exposures, such as employees moving or test-driving customer vehicles. Some markets now cover these businesses with general liability plus auto coverage instead of a garage policy, so the right structure depends on your operations and markets.
What It Typically Covers
- Injuries to customers and visitors at your shop
- Property damage caused by your operations
- Certain auto liability exposures tied to your garage operations
- Legal defense against covered claims
Common Gaps to Watch For
- Damage to customers’ vehicles in your care usually needs garagekeepers coverage.
- Faulty work itself is often excluded, though resulting damage may be covered.
- Your own trucks used for towing or service calls need auto coverage.
- Employee injuries belong to workers’ compensation.
Who Usually Needs It
Repair shops, service centers, and other businesses that work on vehicles.
What Underwriters Consider
- Services offered and revenue
- Number of employees
- Whether you road-test or move customer vehicles
- Towing operations
- Claims history
Questions to Ask
- Should my shop have a garage policy, or general liability plus auto?
- Am I covered when employees drive customer vehicles?
- Do I need garagekeepers coverage?
- How does my policy treat faulty work?
All coverage is subject to policy terms, conditions, and exclusions.
Last reviewed: November 1, 2026
If You Win, We Win.
Every business deserves an agent who understands its operation, represents it honestly, and stays engaged after the policy is bound.
Licensed in Illinois.