Garagekeepers Insurance and Garagekeepers Liability Insurance for Washington Business Owners 

If you own an auto repair shop, dealership, body shop, towing service, or car detailing business in Washington, you need to understand garagekeepers insurance and garagekeepers liability insurance. These specialized policies protect your business from financial losses if a customer’s vehicle is damaged while in your care. In this guide, we’ll cover the key differences between these policies, who needs them, and how to choose the right coverage for your business. 

What is Garagekeepers Insurance? 

Garagekeepers insurance covers physical damage to customer vehicles while they are in your custody, care, or control. This coverage is essential for businesses that store, park, or service vehicles, helping to protect against unexpected repair or replacement costs due to damage. Unlike general liability insurance, which covers third-party injuries and property damage, garagekeepers insurance specifically addresses damage to customers’ vehicles while on your premises. 

What is Garagekeepers Liability Insurance? 

Garagekeepers liability insurance is a form of garagekeepers coverage that protects your business when you are legally responsible for damage to a customer’s vehicle. For example, if an employee accidentally scratches a car during a repair or a vehicle is damaged due to negligence, garagekeepers liability insurance covers the repair costs. 

Key Differences: 

• Garagekeepers Insurance – Broad protection for customer vehicles in your care. 
• Garagekeepers Liability Insurance – Covers damages when your business is legally responsible. 

Who Needs Garagekeepers Insurance and Garagekeepers Liability Insurance? 

These coverages are critical for businesses that handle, service, or store customer vehicles, including: 

• Auto Repair Shops – Protects against accidental damages while repairing vehicles. 
• Body Shops – Covers vehicles undergoing collision repairs or painting. 
• Car Dealerships – Safeguards vehicles left on your lot for service or appraisal. 
• Detailers & Car Washes – Covers potential damages during cleaning or detailing. 
• Towing Companies – Protects vehicles transported or stored on your property. 

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

What Does Garagekeepers Insurance Cover? 

Garagekeepers insurance typically includes protection against: 

• Collision – Covers damages if a customer’s vehicle collides with another object while in your care. 
• Comprehensive – Protects against theft, vandalism, fire, and natural disasters.
• Specified Perils – Covers specific risks like theft, fire, and severe weather. 

Types of Garagekeepers Insurance Coverage: 

• Legal Liability Coverage – Covers damages only when your business is legally responsible. 
• Direct Primary Coverage – Provides broader protection, covering damage regardless of fault. 

Why Garagekeepers Insurance is Essential for Washington Businesses 

1. Financial Protection – Avoid costly out-of-pocket expenses for vehicle damage claims. 
2. Customer Trust & Reputation – Customers feel secure knowing their vehicles are protected. 
3. Legal Compliance – Some contracts and state regulations require garagekeepers liability insurance. 
4. Coverage for Uncontrollable Events – Protects against weather damage, theft, and vandalism. 

Garagekeepers Liability vs. General Liability Insurance 

General liability insurance does not cover damages to customers’ vehicles. If you run an auto service or dealership, you likely need both policies to ensure full protection. 

• General Liability Insurance – Covers third-party injuries and property damage related to your business operations. 
• Garagekeepers Liability Insurance – Covers damages specifically to customer vehicles while in your care. 

Choosing the Right Garagekeepers Insurance for Your Business 

When selecting the best policy, consider: 

• Type of Coverage – Legal liability (cheaper) vs. direct primary (broader protection). 
• Coverage Limits – Higher limits for businesses handling luxury or high-value vehicles. 
• Deductibles – Balance between affordable premiums and manageable out-of-pocket costs. 
• Policy Exclusions – Ensure your policy covers the risks most relevant to your business. 

Get Expert Garagekeepers Insurance in Washington With Hood Insurance Agency

At Hood Insurance Agency, we specialize in business insurance for auto service providers, repair shops, and dealerships throughout Washington. Our agency is based in Lynnwood, WA, and we have extensive experience helping businesses across the state secure the right coverage.