If your business has a garage, then you should have garage insurance coverage. Just like auto repair shops, auto detailing businesses, car rentals, and car wash businesses, you’ll find this insurance very useful.
Your garage may be covered under your existing business/property insurance policy, depending on how it’s underwritten by your carrier. However, if it isn’t, then you will need to purchase an additional garage insurance policy to ensure that the actual location where cars are stored is covered.
In this article, we’re going to take an in-depth look at garage liability insurance coverage for small businesses. We’ll start by taking a look at some of the most common types of garage liability insurance. Then, we’ll go over the average garage liability insurance cost. Finally, we’ll give you a brief overview of some of the best garage insurance companies on the market. Let’s take a look!
Garage liability insurance is a specialty coverage carriers underwrite for businesses in the automotive industry. Visitors and clients might get hurt or have their belongings broken due to an accident happening within your garage’s premises. It’s also possible for you or an employee to inflict damages while providing a service. Garage liability insurance protects you from this exposure by covering:
Third-party personal injury claims-When the operations of your business’s garage inflicted cuts, burns, lacerations, and other injuries to third parties, garage liability insurance will kick in to cover medical expenses
Third-party property damage-Garage liability insurance will provide refunds to affected third parties whose properties got damaged due to the activities your employees are carrying out in the garage
Understand that garage liability insurance only caters to property damage claims and personal injury claims. And so, it’s smart for you to get other types of liability insurance coverage.
Many other types of liability coverage are available for your business’s garage but the most common is a general liability insurance policy. Similar to garage liability insurance, the role of general liability insurance is to protect you in the event that a third party files a personal injury claim or property damage claim. But general liability insurance is more comprehensive; it can also protect your business from other claims filed by customers, visitors, and other third parties through the following optional policies:
Advertising injury coverage-Advertising injury coverage will prevent financial losses by covering settlements, administrative costs, and other legal expenses when third parties sue for slander, libel, copyright infringement, and other similar offenses
Products and completed operations coverage-Products and completed operations coverage will mitigate financial losses if a client files a claim because the services your business’s garage provided caused personal injuries or property damage
Of course, different types of garages will need to purchase different types of coverage and may require different insurance policy aggregate limits. For example, auto dealer liability insurance policies may need higher coverage than a simple garage-keeping business that doesn’t have customers coming in and out of a public office building all day.
Employees working in your business’s garage might be negligent and commit mistakes while providing a service. A client who sustains losses because of this can file a claim against your business. To be protected against such peril, decide to get professional liability insurance. Professional liability will provide compensation and cover legal expenses if your business is sued for:
Breach of confidentiality
Violation of fair dealing
Violation of good faith
If you own an auto detailing garage, mechanic shop, or even an auto dealership, there’s a good chance that you have some expensive tools and equipment in your garage. Unfortunately, this can often be an easy target for thieves. Thankfully, you can typically purchase a comprehensive theft insurance policy for your tools in the event that they’re stolen. The higher the values of the tools you’re insuring, the more you’ll typically pay in premiums.
You might find theft coverage lackluster as it only kicks in when the tools in the garage become stolen. If you’re looking for something more comprehensive, then go for equipment and tools insurance. Equipment and tools insurance will recoup losses or provide immediate replacements if the tools in your garage become damaged or lost due to theft, usage, fire, vandalism, and other covered perils.
Consider covering your business’s garage with commercial property insurance. If something happens to the garage, commercial property insurance sees to it that you don’t sustain significant financial losses. Commercial property insurance shields you against:
Garage damage-When your business’s garage becomes damaged due to fire, theft, vandalism, extreme weather, and other covered perils, commercial property insurance will provide the money you can use to cover repair expenses
Garage destruction-If fire or extreme weather destroys your business’s garage, commercial property insurance will finance reconstruction costs and sees to it that business operations can continue as if nothing happened
The commercial property insurance for your business’s garage comes with equipment and tools coverage. This will recoup losses if the equipment and tools become damaged or lost due to fire, theft, vandalism, and other covered perils while in the premises of the garage.
Commercial property insurance doesn’t protect your garage against earthquakes, floods, and mudslides. You need to purchase endorsements or other insurance policies to have protection against these perils.
You have to shoulder expenses if the vehicles of other persons stored in the garage, which are currently under your custody, become lost or damaged due to fire, theft, vandalism, and other covered perils. In connection, commercial property insurance doesn’t take care of the possessions of third parties stored in your business’s garage. The same is also true for general liability insurance.
Garage keepers insurance takes care of this loophole. This insurance will help you reimburse parties whose possessions got damaged or lost while in your business’s garage due to fire, theft, vandalism, and other covered perils. Note that this insurance doesn’t cover damage due to faulty workmanship.
Employees working in your business’s garage must be covered by workers' compensation insurance. The coverage of workers' compensation insurance takes effect when at least one employee sustains a work-related injury or disease. Workers' compensation insurance helps pay for the following:
Medical treatment/procedure-Common injuries employees sustain while working in your garage are cuts, burns, lacerations, contusions, and fractures. They might also contract a disease. In connection, workers' compensation insurance will pay for the surgeries, therapies, and other medical treatments/procedures your employee needs to fully recover
Hospitalization-Workers compensation insurance sees to it that your employee enjoys adequate medical care upon sustaining a disease or injury due to work. It will pay bills if ever hospitalization is required
Medication-Workers compensation insurance provides the money your employee can use to buy the medicines prescribed by the attending physician
Rehabilitation-If your employee sustains a severe injury that calls for rehab, workers compensation insurance will finance therapist fees, rehabilitation equipment expenses, and other costs
Lost income compensation-Your employee might request a leave upon sustaining cuts, burns, lacerations, or a disease. In this situation, workers' compensation insurance will cover lost wages on your behalf. It provides your employee a weekly allowance equal to two-thirds or 67% of the average weekly wage
Death benefits-Workers compensation insurance will cover funeral expenses if an employee dies from a work-related injury or disease. Dependents will also receive cash assistance from the policy
Workers' compensation insurance is required as soon as one or more employees are working in your business’s garage. This insurance covers part-time employees, full-time employees, and contractors. Failure to get workers' compensation insurance is subject to stiff fines and penalties.
Workers' compensation insurance for businesses having garage operations has employer’s liability insurance as an inclusion. Employer’s liability insurance will cover attorney fees, administrative costs, compensatory payments, and other legal expenses if an employee, who sustained a work-related injury or disease, decides to sue for negligence. If you’re in a state where employers with workers comp are provided an exclusive remedy, then there’s no need to get employer’s liability insurance.
Employment practices liability insurance will cover expenses if an employee sues your business for sexual harassment, discrimination, wrongful termination, and other violation of employee rights.
Operations in the garage might get halted by unexpected events. As a result, your business will lose a significant amount of income. And even though income isn’t generated, you have to cover operational costs. This is why it’s smart for you to get business interruption insurance. This garage business insurance will cover employee wages, loans, taxes, and other expenses while your business isn’t generating revenue. Coverage applies for 30 days but you can extend the duration to 360 days through an endorsement.
An employee or a group of employees might commit a crime against your business. As protection against this peril, insurance companies underwrite employee dishonesty insurance. Employee dishonesty insurance will recoup losses if employees or an employee commits the following:
Destruction of money and other securities
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Mechanics may be required to pay higher premiums for mechanic liability insurance coverage. This is because auto mechanic work typically presents a higher-than-average risk of damage, both to customers and the vehicles they place in your care. So whether your employee scratches a vehicle, a customer trips over an air hose, or your hydraulic lift malfunctions and drops a car, your liability insurance policy will ensure that you don’t have to pay for the damage out of your own pocket.
If you run an at-home garage workshop, you’ll still need to make sure the area where you store and work on vehicles is insured. The price of your premiums for garage workshop insurance will typically vary, depending on the neighborhood you live in, how many cars your garage holds, and if you’ve installed any safety measures in your workshop (such as cameras, security systems, flood lights, keypad entry, etc.).
Garage dealers insurance is a type of insurance policy designed for car dealers that have an onsite garage. Car dealers often have a garage where they keep nicer cars at night, work on their customers’ cars, or perform warranty repairs and servicing. Garage insurance for car dealers protects this. It’s important to make sure that your garage space is insured - especially if you’re keeping clients’ cars.
Garage liability insurance for auto dealer is the most basic level of coverage that you’ll need to look into. As we talked about earlier, liability insurance prevents you from being financially liable if your client’s car is damaged while in your possession. This could cover minor scratches to large engine repairs, depending on the damage that was sustained.
By now, you’re probably wondering how much garage insurance cost. Well, assuming that you go with a general liability insurance policy for your garage, you’ll pay around $113 per month or $1,356 per year in premiums for a $1,000,000/$2,000,000 general liability coverage.
Based on our research and consumer data obtained from policyholders, these are the average rates that most small business owners pay for their garage liability policy from different providers.
|Insurance Provider||Average Monthly Rate||Average Annual Rate||Best for|
|CoverWallet||$105.70||$1,268.4||Garage insurance quotes comparison online|
|Geico||$108||$1,295||Commercial garage insurance for auto dealers|
|State Farm||$110||$1,324||Small auto detailing businesses or repair shops|
|Progressive||$122||$1,463||Garage liability insurance for used car dealers and mechanics|
As always, these are just average rates. Your own rates could be considerably cheaper or a bit more expensive. Insurance providers take a range of different factors into account when deciding on the rate they’ll charge you, including:
Personal credit history.
Previous insurance claim history.
The city and state you’re doing business in.
Your gross annual revenue.
Whether you’re a previous customer of the insurance company.
The average dealer garage insurance cost is $155 per month or $1,860 per year for a $1 million general liability coverage included in a garage insurance policy. Smaller dealers may pay closer to $1,000 per year, while larger dealers may pay closer to $2,300 per year. It all depends on your specific business and its risks.
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Now that you know a little more about how garage liability coverage works and the average cost of coverage, we figured that we would give you a quick overview of four of the market’s top garage insurance providers: Geico, Progressive, CoverWallet, and State Farm. Read the reviews below to know the pros, cons, and yearly $1 million garage liability insurance cost of each of these companies.
Click the "Get Quotes" button on this page to get the best coverage. After you complete the quote generation form, it’s likely that at least one (if not all four) of these insurance companies will contact you with a quote. That being said, it helps to know a little bit of the background of each, so you can make the most informed buying decision. Let’s check them out!
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No hidden charges.
Has garage insurance for car dealers, mechanics, and other related businesses.
CoverWallet doesn’t underwrite the garage insurance policies available by customers.
CoverWallet sells the garage liability insurance of its partners. This insurance company allows you to pay premiums online, add landlords or clients as additional insureds, get a certificate of insurance for free, and manage your policy via the CoverWallet app. Additionally, CoverWallet has an online quotes comparison platform that helps you find other carriers providing comprehensive garage liability insurance at the most reasonable rates.
Best For: Garage liability insurance quotes comparison online.
Average Cost: $1,268.4 per year.
Insuranks Rating: 5/5
Great customer service ratings.
Discounts for loyal, long-standing customers, and bundling.
Claims are usually handled fast and fairly.
Phone wait times can be somewhat slow.
If you need used car dealer liability insurance or you need to insure your small mechanic’s garage, Progressive is an excellent choice. They’ve received positive customer service ratings, and are well known for providing amazing deals and discounts for loyal customers or customers who bundle policies together. Claims are generally handled quickly and efficiently, and insurance payouts are typically more than fair.
Best For: Garage liability insurance for used car dealers and mechanics.
Average Cost: $1,463 per year.
Insuranks Rating: 4.5/5
Easy to get in touch with about claims.
Decent rates for small business garage insurance.
Outstanding customer service.
Not as many discounts and deals as other major insurers.
Whether you need a small or large garage insurance policy, State Farm has you covered. State Farm is the largest insurance company in the United States and has developed a reputation for providing exceptional customer service. They specialize in providing affordable small business insurance across the central U.S. states as well as the east and west coast. With offices and agencies in almost every major city, it’s incredibly easy to get in touch with a representative about a claim.
Best For: Small auto detailing garages or repair shops.
Average Cost: $1,324 per year.
Insuranks Rating: 4.5/5
Has offices around the country so getting in touch with agents is easy.
Good customer service ratings.
Handling small business claims can be somewhat tedious.
If you need commercial garage insurance, then Geico is more than happy to provide you with a comprehensive policy at an affordable rate. Geico is the nation’s second-largest insurance company, and although they’ve received some complaints when it comes to handling claims, they have decent customer service and better-than-average rates. You’ll also be able to save big by bundling your Geico garage insurance policy with other Geico policies that you may have, such as home and auto.
Best For: Commercial garage insurance for auto dealers.
Average Cost: $1,295 per year.
Insuranks Rating: 4/5
Searching for, “garage liability insurance near me?” Well, look no further! To get your free garage liability insurance quote, simply click ‘Get Quotes’ below. All it requires is for you to enter a few basic details about your business, follow the process and you’ll start receiving customized quotes from some of the country’s top commercial insurers!
Comparing garage insurance quotes online is the best way, by far, to ensure that you’re getting a great deal. This allows you to compare garage insurance providers side-by-side to see which offers the best coverage for your commercial needs at the best rate.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
It really can't get any better than this... wow