Image of a car in a garage

Garage Policy Insurance in Washington: Guarding Your Pack with Liability & Garagekeepers Coverage

Running an auto repair shop, dealership, towing service, or detailing business in Washington means taking responsibility for more than just your own operation—you’re also guarding your customers’ vehicles. That’s where a garage policy comes in.

A garage policy is a specialized form of business insurance designed for companies that work with customer vehicles. It has two main parts:

  • Garage Liability Insurance – Protects your business from claims involving injuries or property damage caused by your operations.

  • Garagekeepers Insurance – Protects customer vehicles while they’re in your care, custody, or control.

Together, these coverages form the backbone of protection for auto businesses across Washington. Let’s break them down.

What Is Garage Liability Insurance?

Garage liability insurance is chosen instead of a standard general liability (GL) policy because GL policies contain exclusions for auto-related businesses. In other words, if your shop uses, sells, services, or parks vehicles, a regular GL policy won’t protect you.

Garage liability fills that gap by covering:

  • Bodily Injury: If a customer slips and falls in your shop.

  • Property Damage: If an employee accidentally damages someone’s property during work.

  • Legal Defense Costs: If your business is sued over a covered claim.

  • Use of Non-Owned Vehicles: Protects you when moving or test-driving a customer’s car in the course of business.

  • Dealership Operations: For dealers, it can extend to the use of vehicles owned by the dealership.

Think of garage liability as the shield protecting your operations and your people while they’re behind the wheel, while garagekeepers (the other half of a garage policy) is the guardian watching over customer vehicles themselves. Both are needed to cover the full range of risks auto businesses face.

What Is Garagekeepers Insurance?

Garagekeepers insurance is more specialized—it’s the guardian watching over customer vehicles while they’re in your possession. It covers physical damage to cars that are stored, repaired, parked, or detailed on your premises.

Coverage options include:

  • Collision: Damage caused by crashes while in your care.

  • Comprehensive: Theft, vandalism, fire, or weather damage.

  • Specified Perils: Fire, theft, or other listed events.

Two Forms of Garagekeepers Coverage:

  • Legal Liability Coverage: Pays only if your business is legally responsible for the damage.

  • Direct Primary Coverage: Pays regardless of fault, offering broader protection.

A strong garage policy ensures your business never gets left exposed to the elements—just as a wolf pack thrives with protection on every side

Building Your Den: Who Needs This Coverage?

Just as a wolf’s den is a safe place for its pups, your business is a secure haven for your customers' vehicles. This coverage is critical for any business that shepherds customer vehicles, including the alphas of the pack:

  • Auto Repair Shops: Protecting the vehicles you're trusted to heal.

  • Body Shops: Guarding vehicles as they are transformed.

  • Car Dealerships: Safeguarding your herd of inventory and service vehicles.

  • Detailers & Car Washes: Protecting your pack as they are groomed.

  • Towing Companies: Ensuring safe passage for vehicles in your care.

Because these businesses regularly handle high-value assets, having the right coverage helps prevent costly claims.

Why a Garage Policy Is Essential for Washington Auto Businesses

  • Financial Protection: Avoid paying costly claims out-of-pocket.

  • Customer Confidence: Show customers their vehicles are guarded while in your care.

  • Legal Compliance: Some contracts and state requirements mandate certain coverage.

  • Peace of Mind: Protects against both everyday risks and uncontrollable events like theft or storms.

Choosing the Right Coverage

When structuring your garage policy, consider:

  • Coverage Limits: Higher limits may be needed for luxury or high-value vehicles.

  • Deductibles: Balance affordability with manageable risk.

  • Policy Exclusions: Make sure your biggest risks are actually covered.

  • Form of Garagekeepers Coverage: Decide between legal liability (lower cost) and direct primary (broader protection).

Protect Your Pack With Hood Insurance Agency

At Hood Insurance Agency, based in Lynnwood, WA, we specialize in helping Washington auto businesses protect their pack. We’ll tailor a garage policy with the right balance of garage liability and garagekeepers coverage so your operation, your customers, and your reputation stay safe.

Because at the end of the day, protection isn’t just a policy—it’s a principle.