Glossary

Garagekeepers coverage

Coverage for damage to customers' vehicles while they are in your care, such as at a repair shop, parking lot, car wash or valet stand.

Also called: garagekeepers, garagekeepers liability, customers' autos coverage

Garagekeepers coverage pays for damage to a customer's vehicle while it is in your care, custody or control. Repair shops, tire dealers, car washes, parking garages and valet operations all hold other people's cars, and ordinary policies leave that exposure out. The CGL excludes property in the insured's care, custody or control, and business auto forms exclude it too.

It is written inside the ISO garage coverage form (CA 00 05). The key choice is how it responds. Legal liability coverage pays only if you are legally liable for the damage. Direct coverage, available as comprehensive, specified causes of loss or collision, pays for the damage to the customer's auto regardless of fault, and can be primary or excess over the customer's own insurance. Direct coverage costs more but avoids arguments over who was at fault, which matters when the customer is standing in your lobby.

Check four things: the limit per location, since a lot full of cars can produce a large single loss from hail or a fire; the deductible; whether the coverage reaches autos away from your premises, such as road tests and valet runs; and whether the garage liability section is included for your operations. The guide on garage liability and garagekeepers coverage covers all of this, and the care, custody and control entry explains the exclusion it answers.

Last reviewed October 10, 2026

In the index now

Related terms

Care, custody and control A liability policy exclusion for damage to other people's property that the insured has in its possession or charge, such as a customer's car or goods. Bailee A person or business holding someone else's property temporarily, such as a repair shop, dry cleaner or warehouse, with a duty to care for it and return it. Commercial general liability (CGL) The standard business policy for claims that your operations, premises or products injured someone or damaged property, usually on ISO form CG 00 01. Business auto policy (BAP) The commercial policy covering liability and physical damage for vehicles a business owns, hires or borrows, with covered autos chosen by numbered symbols.

Related guides

Bailee coverage: insuring customers' property in your care Bailee's customers coverage pays for customers' property held for service or repair. Legal liability vs direct forms, the processing exclusion, valuation, gaps. Care, custody and control: why the CGL won't pay for property you hold The CGL excludes damage to property in your care, custody or control. Who gets caught, where courts disagree, and which policies fill the gap. Garage liability and garagekeepers coverage How garage liability and garagekeepers coverage protect repair shops, dealers, valets and parking operators, and where the CGL and auto policy fall short.

Related insurers

Argo Group and Farm Family (Clearbrook) Brookfield's U.S. P&C arm: Argo specialty casualty, E&S, garage and Rockwood comp through brokers, plus Farm Family farm and small business cover. Auto-Owners Insurance Lansing, Michigan mutual that sells only through independent agents in 26 states; a top-10 U.S. writer of commercial package, commercial auto and fire. COUNTRY Financial Bloomington, Illinois insurer founded by farmers in 1925; sells farm, small business and workers' comp coverage through its own reps in 19 states. Federated Insurance Minnesota mutual founded in 1904 that sells property, casualty, life and bonds directly to businesses in select industries, backed by 500+ trade associations. Shelter Insurance Missouri mutual selling auto, home, farm and small business policies through exclusive agents in 14 states; Haulers and AmShield use independent agents.

Related industries

Auto dealer insurance What new and used car dealers need: garage liability, dealers open lot physical damage, garagekeepers, state dealer bonds, floorplan lender terms and cyber. Auto repair shop insurance What repair shops and body shops need: garage liability, garagekeepers for customers' cars, property, pollution, workers' comp and tools. Tow truck insurance What tow operators need: auto liability, on-hook cargo coverage, garagekeepers for storage lots, workers' comp, and the state and municipal insurance minimums.