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🔧 '''Garage insurance policy''' is a specialized [[Definition:Commercial insurance | commercial insurance]] product designed to cover the unique exposures faced by businesses that service, repair, store, or sell automobiles. Unlike a standard [[Definition:Business owners policy (BOP) | business owners policy]], a garage policy bundles several coverages — including [[Definition:General liability insurance | general liability]], [[Definition:Property insurance | property coverage]], and [[Definition:Garagekeepers insurance | garagekeepers insurance]] — into a single contract tailored for auto dealerships, body shops, service stations, towing companies, and similar operations. The policy is most closely associated with the U.S. market, where the Insurance Services Office (ISO) publishes standard garage coverage forms, though analogous bundled motor trade policies exist in the United Kingdom and other jurisdictions under different names.

⚙️ The policy typically operates through two main insuring agreements. The first is garage liability, which responds to [[Definition:Bodily injury | bodily injury]] and [[Definition:Property damage | property damage]] claims arising from the insured's garage operations — whether that involves a test drive accident, a customer slipping on the shop floor, or damage caused by a completed repair. The second agreement, garagekeepers coverage, protects vehicles left in the insured's care, custody, or control against perils such as fire, theft, collision, or vandalism. Insurers underwrite these policies by evaluating the nature of the garage operation, the volume of vehicles handled, revenue, claims history, and the specific services offered. [[Definition:Premium | Premiums]] are often determined using a combination of gross sales, payroll, and the number of vehicles stored on premises.

💡 For insurers and [[Definition:Managing general agent (MGA) | MGAs]] writing commercial auto and specialty lines, the garage policy represents a meaningful niche. It consolidates exposures that would otherwise require multiple standalone policies, simplifying the coverage structure for the insured and reducing gaps or overlaps. Underwriting discipline is critical because garage operations generate a wide range of loss scenarios — from high-frequency fender benders during vehicle movements to severe products-completed-operations claims. In the U.S. market, garage insurance is a staple of many regional carriers' books, while in the UK the motor trade policy serves a comparable function, often written through [[Definition:Delegated underwriting authority (DUA) | delegated authority]] arrangements with specialist intermediaries.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Garagekeepers insurance]]
* [[Definition:Garage liability insurance]]
* [[Definition:Commercial auto insurance]]
* [[Definition:General liability insurance]]
* [[Definition:Business owners policy (BOP)]]
* [[Definition:Motor trade insurance]]
{{Div col end}}

Definition:Garage insurance policy - Revision history

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