Catastrophes can happen and businesses cannot afford the financial loss that comes with catastrophes, particularly if they are storing or repairing customer property which is not their own. Garagekeepers legal liability insurance sold by commercial insurance wholesalers and brokers is a type of insurance that can provide coverage against financial loss due to damage of customer property in their care. Some ways customer property can be damaged under liability insurance can include fire, collision, or theft. For example, if an auto repair shop has a customers vehicle in their garage and fire damages the car, the garage keepers policy can repay the loss to the limit set by the policy. Examples of companies that might benefit from garage keepers insurance might include auto repair shops, towing services, or service stations.
Garagekeepers insurance generally operates on a per occurrence basis, which means the loss must have occurred during the policy period. The insured business can usually set the limit of coverage as high or as low as they wish. The number of vehicles or other property damaged does not impact the payment value of this type of coverage, only the total value of that property. Two states, Texas and Virginia, call this type of insurance storage location insurance and use the term garage keepers insurance specifically for towing insurance. Garagekeepers insurance can be obtained through any licensed commercial insurance agent or commercial insurance wholesalers broker.