What is garage liability insurance and what are some of the costs? What can alter the cost? What companies provide this type of insurance?

Thanks for your help!

Danny Williams


Generally speaking, garage liability insurance is purchased by someone who owns a repair shop, or some other auto service center. It typically covers liability for the premises and operations, products and completed operations. So, if you are the owner of a service center and someone who applied for employment claimed discrimination, or a customer slipped and fell or claimed faulty parts or service, you would be covered.

Garage liability insurance also covers automobiles owned by the business, but it does not cover customers’ cars that are left in the care of the shop. That sort of coverage is known as garage keepers’ insurance. Garage keepers’ insurance is usually sold with garage liability policies, but it is still a separate contract.

The cost of garage liability insurance varies according to a number of criteria, including the limits and deductibles selected, the location and size of the business to be insured, the number of employees and locations that a business maintains and any pre-existing history of loss that the company might have.

To purchase garage liability insurance you’ll need to visit an insurance agency in your area. But some of the carriers who offer garage liability through agents include
Universal Underwriters Insurance Company,
Liberty Mutual Insurance Company and
Ohio Casualty Insurance Company. Their sites may help you to find the coverage you’re looking for.

DAVID FLORIAN is an established member of the American Academy of Actuaries with more than 10 years of actuarial experience. Florian is a registered Series 7 and Series 63 insurance representative licensed in life, health, annuity, auto and personal lines in 51 jurisdictions.