Garage Liability vs. General Liability for Auto Repair Insurance
- Nate Jones, CPCU, ARM, CLCS, AU
- 2 days ago
- 2 min read
Auto repair shops face more risks than the average small business. Customer vehicles, dangerous equipment, road testing, and mechanical work all create exposures that need the right insurance protection. When shop owners begin comparing auto repair business insurance, two coverages often create confusion: General Liability and Garage Liability.
Although they sound similar, they protect your shop in very different ways. Understanding the difference helps ensure you carry the correct coverage when requesting an auto service business insurance quote.
What Is General Liability Insurance?
General Liability Insurance provides broad protection for third‑party injuries and property damage unrelated to your repair operations. It covers:
Customer slip‑and‑fall accidents
Damage to a customer’s personal property (not their vehicle)
Advertising injury claims
Lawsuits resulting from non‑auto‑related business activities
General Liability is a baseline requirement for most businesses and is typically included in a Business Owners Policy (BOP). Every auto repair shop needs this coverage because accidents can happen anywhere in your facility, lobby, office, restroom, or parking lot.
What Is Garage Liability Insurance?
Garage Liability is designed specifically for businesses that work on or move customer vehicles. It adds protection for accidents resulting from your auto repair operations. It covers:
Bodily injury caused by faulty repairs
Property damage caused by technicians during repair work
Damage caused while moving vehicles around your lot
If your shop performs services like engine repair, transmission work, brake replacement, diagnostics, or welding, Garage Liability is essential. It fills the gaps that General Liability does not cover.
Key Differences Between the Two
General Liability | Garage Liability |
Covers non‑auto‑related risks | Covers auto repair‑related risks |
Slip‑and‑fall, customer injuries | Faulty repairs causing damage/injury |
Damage to non‑vehicle property | Damage caused during test drives |
Broad business protection | Specialised coverage for repair shops |
In short: General Liability protects your business. Garage Liability protects your operations. Auto repair shops need both.
Do You Need Both Coverages?
Yes. Auto repair shops are considered high‑risk, and most insurance carriers require both General Liability and Garage Liability before offering a policy. Having both ensures that whether a customer falls in your shop or a repair goes wrong, your business is protected from lawsuits, medical payments, and property damage claims.
Get the Right Liability Coverage for Your Auto Repair Shop
Because these policies can vary by carrier, limits, and exclusions, working with an agency experienced in auto repair risks is essential. Wexford Insurance partners with insurance carriers that specialise in auto repair businesses nationwide, helping you compare coverage options and secure better pricing.
👉 Request your auto service business insurance quote from Wexford Insurance today and ensure your shop has the right liability protection for every repair, test drive, and customer interaction.
