Auto garage liability insurance helps protect automotive businesses from claims involving bodily injury, property damage and vehicle-related accidents arising from garage operations. Coverage may respond if a customer is injured at your shop, an employee damages another person’s property while test-driving a vehicle or your business is held responsible for an accident involving a covered vehicle used during repair, service, parking or dealership operations.
This coverage is designed for many types of Colorado automotive businesses, including auto repair shops, body shops, tire stores, oil change facilities, brake and transmission shops, detailing businesses, service stations, vehicle dealerships, restoration shops, mobile mechanics, towing companies and businesses that install automotive parts or accessories. A garage policy can combine liability protection for the premises and business operations with coverage designed around the vehicles your business owns, operates or services.
How Much Does Auto Garage Liability Insurance Cost in Colorado?
Small Colorado automotive businesses with limited payroll, modest revenue and favorable claims histories may pay approximately $1,500 to $4,000 per year for garage liability coverage. Established repair shops, body shops and multi-bay service facilities often pay around $3,500 to $10,000 per year. Dealerships, towing operations, high-volume repair facilities and businesses with multiple drivers, significant test-driving exposure or previous losses may pay $10,000 to $25,000 or more annually.
A broader garage insurance package that includes garage liability, garagekeepers coverage, commercial property, business income, tools and equipment, commercial auto and workers’ compensation may cost approximately $4,000 to $12,000 per year for a smaller automotive business. Larger shops, dealerships and towing businesses may pay $12,000 to $40,000 or more depending on their operations and coverage needs. The final premium depends on annual revenue, payroll, number of employees, driver records, types of services performed, customer vehicle values, number of vehicles kept overnight, building size, location, coverage limits, deductibles and prior claims.
What Is the Difference Between Garage Liability and Garagekeepers Insurance?
Garage liability and garagekeepers insurance protect against different exposures. Garage liability generally covers claims involving your premises, business operations and certain vehicle use associated with garage operations. For example, it may respond if a customer slips inside the shop or an employee causes an accident while test-driving a vehicle after completing repairs.
Garagekeepers insurance is designed to protect customers’ vehicles while they are in your business’s care, custody or control. Depending on the selected coverage form, it may help pay for customer vehicle damage caused by collision, fire, theft, vandalism, severe weather or another covered event. Many Colorado repair shops, body shops, dealerships, parking businesses and towing companies need both garage liability and garagekeepers coverage to address these separate risks.
Which Carriers Offer Auto Garage Liability Insurance Coverage?
Castle Rock Insurance and its specialty partners work with commercial insurance carriers and specialty programs that may offer garage liability coverage for Colorado automotive businesses. Depending on your services, business size and underwriting eligibility, coverage may be available through carriers and programs such as Progressive Commercial, Travelers, Nationwide, Liberty Mutual, Zurich, Sentry, Federated Insurance, Auto-Owners, AmTrust, Berkshire Hathaway GUARD, Great American, EMC Insurance, West Bend, Markel, Philadelphia Insurance Companies, USLI, Kinsale, Nautilus and other admitted and specialty commercial insurance markets.
Because automotive businesses can have significantly different exposures, there is no single carrier that is best for every garage. A mechanical repair shop, used-car dealership, collision center and towing company may each require a different policy structure. Castle Rock Insurance and its specialty partners compare available markets to help businesses find the right combination of garage liability, garagekeepers, commercial property, business income, commercial auto, workers’ compensation, pollution liability and umbrella coverage.
Get an Auto Garage Liability Insurance Quote Today
Whether you operate a small repair shop, growing body shop, vehicle dealership or specialized automotive service business, the right garage insurance policy can help protect your customers, employees, property and daily operations. Castle Rock Insurance and its specialty partners make it easy to compare auto garage liability insurance options from multiple commercial insurance carriers. Contact us today for a personalized quote and let us help you find the right protection for your Colorado automotive business.
