Garage Liability · Limits up to $5 Million
Garage Liability Insurance for Florida Dealers and Shops
Garage liability pays when your business hurts someone or damages their property: on the lot, in the bays, on a test drive or after a repair leaves your shop, with limits up to $5 million.
What is garage liability insurance and what does it cover?
Garage liability insurance is the liability policy for businesses that sell, repair, service, park or store vehicles. It pays for injuries and property damage your operation causes to other people, plus your legal defense, across six exposures: owned autos, hired autos, non-owned autos, your premises, the products you sell and the work you perform. Our A-rated program writes it up to $5,000,000. It does not pay for customer vehicles in your care, which is garage keepers coverage, or for your own inventory, which is dealers physical damage.
What Garage Liability Insurance Covers
Owned autos
Vehicles titled to your business, including inventory out on a test drive or a delivery.
Hired autos
A car or truck you rent or borrow for business, such as a rental while a service van is down.
Non-owned autos
An employee's own car on a business errand, like a parts run.
Premises
A customer hurt in your showroom, on the lot or in a service bay.
Products
Harm caused by a part or a vehicle you sold, after it leaves your hands.
Work performed
A repair that fails after the customer drives away, such as a brake job that leads to a crash.
Garage Liability vs. General Liability
A general liability policy is written for businesses that do not work on vehicles. It excludes autos, which is the exposure a garage runs on all day.
| Situation | General liability | Garage liability |
|---|---|---|
| A customer slips on your lot | Covered | Covered |
| A crash in a vehicle you own, hire or drive for work | Excluded | Covered |
| A test drive or a delivery goes wrong | Excluded | Covered |
| A repair fails after the job is done | Covered as completed work | Covered as work performed |
| A customer's car is damaged in your care | Excluded | Excluded — needs garage keepers |
| Proof for a Florida dealer license | Only for independent dealers, paired with business auto | Accepted for every dealer |
Florida lets independent dealers file general liability with business auto coverage instead of garage liability (§ 320.27(3), Florida Statutes). Pricing both structures is worth it; franchise dealers do not have that choice.
Garage Liability vs. Garage Keepers Insurance
Garage liability answers for harm to other people and their property. Garage keepers answers for one kind of property only: the customer's vehicle while it is in your care, custody or control. A car scratched in your bay, stolen from your lot overnight or damaged in a shop fire is a garage keepers claim, not a liability claim. Most shops and dealers need both, and our garage insurance page explains the three ways garage keepers is written.
Florida Garage Liability Insurance Requirements
| What Florida law says | What it means for you |
|---|---|
| A dealer license requires garage liability of $25,000 combined single limit for bodily injury and property damage, plus $10,000 personal injury protection (§ 320.27(3), Florida Statutes) | Proof goes to FLHSMV in the dealership's name before the license issues. |
| Franchise dealers must file garage liability; independent dealers may file general liability with business auto coverage instead (§ 320.27(3)) | Used car dealers can price both structures. |
| Dealers also file a $25,000 surety bond or irrevocable letter of credit each year (§ 320.27(10)(a)) | A bond is not insurance; it protects customers and the state, and the surety recovers what it pays from you. |
| No statute sets a garage liability limit for repair shops, car washes or other non-dealer garages | Your landlord, your lender and your fleet customers set the limit in their contracts. |
The state minimum gets a dealer license issued. One serious crash on a test drive can exceed it many times over, which is why our program writes limits up to $5,000,000.
Who Needs Garage Liability Insurance
Dealers
New and used car lots, wholesale, boat, motorcycle, RV, trailer, equipment and golf cart dealers: every dealer class on our garage program.
Repair and service shops
Body shops, mobile mechanics, motorcycle, boat, RV, heavy truck and equipment repair, upholstery and stereo installers.
Parking, storage and car care
Car washes, detailers, valet services, parking lots and garages, auto storage and impound yards.
Garage Liability Limits and Endorsements
Limits run up to $5,000,000. The endorsements landlords, lenders and fleet customers ask for most are available on the program: additional insured, waiver of subrogation, primary and non-contributory wording, broadened coverage, personal injury liability, damage to rented premises and location and operations medical payments. On the auto side, the program adds uninsured and underinsured motorists, personal injury protection and auto medical payments.
Additional Coverages for Garage Businesses
Garage keepers insurance
Customer vehicles in your care, up to $5,000,000 per location and $300,000 per auto.
Dealers physical damage
Owned and consigned units held for sale, on the same per-location and per-auto limits.
Dealer errors and omissions
Title, Truth in Lending, federal odometer and agent's E&O, up to $50,000.
Dealer license bond
The $25,000 bond every Florida dealer files with the license.
Transporter tag insurance
Liability for moving unregistered vehicles under a Florida transporter plate.
Workers comp
Technicians, porters and lot staff hurt on the job.
What You Need for a Garage Liability Quote
- Your business class and every location.
- Your yearly revenue and payroll.
- Your dealer license number, or your FDACS repair shop registration.
- The drivers who move customer or company vehicles, with license numbers.
- The limits and endorsements your landlord, lender or customers require.
Who writes garage liability insurance for small dealers and shops in Florida?
American US Insurance, an independent agency based in Kendall, Miami, writes garage liability for Florida dealers and non-dealer garages through an A-rated program with limits up to $5,000,000. We also quote it in Georgia and Texas, and in North Carolina for non-dealers. We file the dealer-license proof with the state, issue certificates for landlords and floor-plan lenders, and quote garage keepers and dealers physical damage alongside the liability so nothing falls between the policies.
Additional Business Insurance Options
Get a Garage Liability Insurance Quote
Tell us what you sell or service and the limit you need. A licensed agent quotes the program and sends your certificate once you bind, with no obligation to buy.
- No obligation, no pressure
- Renewal and claims help after you buy
- A licensed agent compares carriers
Request My Garage Liability Quote
Common Questions