Garage Liability & Towing

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Garage Liability and Towing

Operators of automotive garages, car dealerships, or towing services face a unique set of liability exposures. If an accident or other mishap occurs, these businesses and their owners could be on the hook for thousands or even millions of dollars. Without an adequate garage keepers’ legal liability insurance plan, the financial losses can have lasting consequences.

Are you an insurance agent or broker looking for the best coverage options for your clients that own garages and repair shops? Prime Insurance Company can help by providing garage keepers legal liability coverage that minimizes the business owner’s exposure. Your policyholders benefit from receiving customized, all-in-one protection. And as a producer, you can offer solutions that aren’t available in the standard market.

We offer many types of liability coverage in Garage Operations for premises, overall operations, and Garage Keepers Legal Liability (GKLL). Businesses can obtain coverage from Day One of a new business operation without a limitation period wait.

To see a complete list of coverages and exclusions, view or download our PDF!


Examples of the specific types of garage insurance we offer include:

  • Customized Specialty Liability Coverage: This plan offers tailored liability protection for risks that directly impact the policyholder’s business.
  • Dealer’s Open Lot: This coverage extends to physical damage for vehicles owned by a car dealership.
  • Drive Other Car: This insurance covers business owners and their employees when driving vehicles they don’t own during their day-to-day operations.
  • Excess coverage available: Policyholders can choose to add liability coverage over and above what their base policy offers.
  • Garage Keepers Legal Liability: This insurance covers damages for non-owned vehicles while they’re stored on the policyholders’ property.
  • Garage Liability: This umbrella coverage protects the insured in the event of third-party injuries and property damage resulting from business operations.
  • Recovery: This type of plan provides liability coverage for repossession and towing services while recovering vehicles.
  • Towing – On Hook & Cargo: This insurance covers damages to non-owned vehicles sustained while they’re being towed.
  • Wrongful Repossession: This coverage offers liability protection in situations such as repossessing the wrong vehicle or not checking with the financing company before recovering a vehicle.

We Say Yes When Others Say No

Producers who write excess and surplus lines insurance face multiple challenges when seeking coverage for their clients. Garage and mechanic insurance can be difficult to obtain in the standard market, especially if the applicant has an extensive claims history.

At Prime, we specialize in risks that other providers don’t take. We can provide coverage if the applicant has been nonrenewed, canceled, or rejected elsewhere. We can also fill the gaps and exclusions that increase the policyholder’s exposure. By writing policies for challenging or misunderstood risks, we deliver the protection that businesses need. Insurance producers benefit by helping their clients obtain essential liability coverage that isn’t available elsewhere.

Our Service Sets Us Apart

The more help and guidance you can provide to clients, the better your chances are of earning and keeping their business. When you partner with Prime, you’ll receive extensive support. We back our garage keepers legal liability insurance programs with excellent service at every step. Work with us for:

  • Flexible underwriting: Our in-house underwriting team can find creative coverage solutions to address the policyholder’s unique circumstances. You’ll have more opportunities to obtain customized protection for each client, even for those outside-the-box situations.
  • Exceptional claims experience: We also offer fast, efficient claims services, including access to a 24/7 hotline for immediate incident reporting. We’ll work closely with you and your client throughout the settlement process. And if the need to litigate arises, our in-house attorneys and legal experts will provide the aggressive representation that policyholders deserve.
  • Comprehensive risk management services:You can deliver a valuable service to your clients by helping them find ways to prevent losses. With our professional risk management, we can help to reduce or eliminate exposures and lower insurance costs. The results will be fewer claims, smaller premiums and increased policyholder satisfaction.

Producer Benefits of Writing Garage Insurance With Prime

As an insurance producer, you can benefit from several aspects of our service:

  • No production requirements: You can write as many or as few garage keepers legal liability insurance plans with us as you need to without penalties or restrictions.
  • Premium financing assistance: High-risk insurance doesn’t have to create a significant financial obligation. With our range of premium financing solutions from Greenlight Premium Finance, we can make the cost more affordable for your clients, increasing the likelihood of landing and keeping their business.
  • Partnership approach: We commit to ensuring the agents and brokers that work with us have all the tools and resources they need to grow their business.

Financial Stability You Can Trust

Producers and policyholders both want to know that the insurance partner they’ve chosen will be there when it counts. Prime is a financially sound business entity — we’ve earned an “A” (Excellent) rating from AM Best, a global credit rating agency serving the insurance industry for more than a century. You can select us with complete confidence.

Prime has also earned a Financial Stability Rating® of A” (A Double Prime), Unsurpassed, from Demotech, Inc. The most current Financial Stability Rating® must be verified by visiting

What to Submit

We’ve eliminated the hassles of applying for towing and garage repair shop insurance with our quick, efficient application process:

  • Complete the General Application. Be sure to include all limits of liability required.
  • A list of all Drivers including a photo copy of driver licenses.
  • A summary of the number of employees, including a breakdown by type of employee (e.g. mechanics, drivers, office help, etc.)
  • A schedule of all Vehicles to be insured, or a list of maximum property values at each location to be insured.

Once we’ve received all the above, we’ll contact you to schedule a convenient telephone conversation with you or the applicant to gather additional information. We’ll then review the details and issue a prompt quote.

If you have questions about garage keepers legal liability coverage, feel free to contact us online..

Get a Quote!