General Liability vs. Garage Keepers Insurance for Auto Repair Shops - Redline Insurance Agency

General Liability vs. Garage Keepers Insurance for Auto Repair Shops

When it comes to insurance for auto repair shops, navigating through the various options can be as complex as diagnosing a mysterious engine noise. Two key types of insurance stand out for their importance: General Liability Insurance and Garage Keepers Insurance. While both are essential in providing a safety net, they serve different purposes and protect against different risks. Let's break down the differences to help auto repair shop owners make informed decisions about their insurance coverage.

General Liability Insurance: Your Basic Armor

General Liability Insurance acts as the first line of defense for your auto repair shop. It's akin to the basic armor that protects against the common threats every business faces. This coverage is broad and primarily safeguards against claims of bodily injury or property damage that occur as a result of your business operations.

What Does it Cover?

  • Bodily Injury: If a customer slips and falls in your shop, general liability can cover their medical expenses.
  • Property Damage: If your employee accidentally damages a customer's property (e.g., breaking a window), this insurance can cover the costs.
  • Advertising Injury: Protection against claims of slander or copyright infringement in your advertisements.

Garage Keepers Insurance: Specialized Protection

Garage Keepers Insurance, on the other hand, offers a specialized form of coverage tailored for businesses that handle customers' vehicles. Think of it as a specialized tool in your kit that’s designed for a specific job. This insurance is crucial for auto repair shops, as it covers the cost of damages to a customer's vehicle while it is under your care, custody, or control.

What Does it Cover?

  • Physical Damage: Covers damages to customer vehicles due to fire, theft, vandalism, or collision while in your possession.
  • Comprehensive Coverage: Protects against damages from non-collision incidents, such as weather damage or theft.

Which One Do You Need?

The straightforward answer is both. Relying solely on General Liability Insurance leaves a significant gap in your protection, especially concerning the vehicles you are servicing — which is where Garage Keepers Insurance comes into play. Together, these policies provide a comprehensive safety net, ensuring that both your business operations and the customer vehicles you work on are well-protected.

Making the Right Choice for Your Shop

When choosing insurance coverage, consider the specific risks associated with your auto repair shop. Factors such as the services you offer, the value of the vehicles you handle, and the size of your operation can influence the type and amount of coverage you need. Consulting with an insurance professional who understands the automotive industry can provide personalized advice and ensure you have the right protections in place.


In the fast-paced world of auto repair, accidents and unexpected events can happen. Having both General Liability and Garage Keepers Insurance ensures that whether it's a slip and fall in your lobby or a mishap in the garage, your business has the coverage it needs to recover swiftly and keep your doors open. Investing in comprehensive insurance coverage is not just about protecting your business; it's about ensuring peace of mind for you and your customers.

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