Why Garage Keepers Liability Matters
When customers leave their vehicles at your shop, they’re placing their trust—and often their most valuable asset—in your hands. Whether you’re doing repairs, maintenance, or diagnostics, that vehicle’s safety becomes your responsibility until it’s back with its owner.
But even the most careful shop owners can face unexpected events. A fire in the service bay, a break-in overnight, or vandalism in the lot can cause serious damage. Without the right insurance, your business could be left covering thousands in repair or replacement costs.
That’s where garage keepers liability insurance becomes essential. It’s one of the most important forms of protection an auto repair shop can have, offering peace of mind that both your customers and your business are financially protected.
How Coverage Protects You
Unlike standard general liability insurance, which only covers injuries or property damage to third parties, garage keepers liability specifically protects customer vehicles while they’re in your care, custody, or control. That means if a client’s car is damaged while parked, being test-driven, or even stored at your shop overnight, this coverage can step in to help pay for repairs or replacement.
Typical covered scenarios include:
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Fire or explosion in your garage or service bay
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Theft or vandalism of vehicles under your supervision
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Extreme weather damage such as hail or flooding
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Employee accidents involving a customer’s car
There are also several types of coverage to consider:
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Legal liability coverage protects you when you’re found legally responsible for damage.
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Direct primary coverage protects customer vehicles regardless of who is at fault.
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Direct excess coverage pays only after the customer’s own insurance limits are exhausted.
Choosing the right version depends on how your shop operates and the level of protection you want to provide.
At MPL Risk, we help auto repair and body shops compare policy types, evaluate shop risks, and select the most cost-effective options. We ensure your garage keepers liability limits align with the number and value of vehicles you typically store, so you’re never underinsured when it matters most.
With the right coverage in place, you safeguard your reputation, maintain customer confidence, and protect your business from the unexpected. Garage keepers liability insurance isn’t just about compliance—it’s about keeping your business running smoothly, even when accidents happen.
