Glossary
Garagekeepers coverage, defined
Protection for a repair shop, body shop, dealer or valet operator against damage to customers' vehicles while they are in the business's care, custody or control.
In practice
Ordinary liability forms exclude property the insured holds for others, so the shop needs this form to answer for a car stolen from its lot or dented on the lift. It is written on one of three bases. Legal liability pays only when the shop was negligent. Direct primary pays regardless of fault, without involving the customer's own policy. Direct excess pays regardless of fault but only above what the customer's policy pays. Most customers expect the shop to make them whole, so direct primary is the version that avoids arguments. The limit is set per location to the value of vehicles typically on hand, with a deductible per vehicle.
A worked example
Suppose a hailstorm damages eight customer cars on a body shop's lot. Under a direct primary form with a $250,000 limit and a $500 deductible per vehicle, the shop's carrier pays each owner's repair without asking who was at fault. Hypothetical figures.
Applies to: Commercial Auto Insurance