Garage Keepers Liability: Essential Coverage for Boat Repair Shops

If you operate a boat repair shop, marina service center, or mobile marine repair business, garage keepers liability insurance is one of the most critical coverages you need. This specialized policy protects you when customer boats are damaged while in your care, custody, or control.

What is Garage Keepers Liability?

Garage keepers liability (also called "garagekeepers" or "bailee coverage") protects you financially when a customer's boat is damaged while you have possession of it. This includes damage that occurs:

- During repair work in your shop

• While stored at your facility

• During sea trials or test runs

• While being moved around your property

• From fire, theft, or vandalism at your location

  Why Standard Liability Isn't Enough

  Your general liability policy covers injuries to third parties and damage you cause to others' property. However, it typically excludes property that's in your care, custody, or control. This is where garage keepers fills the gap.

  Without garage keepers coverage, if a fire destroys three customer boats in your shop worth a combined $200,000, you could be personally liable for the entire amount.

  Types of Garage Keepers Coverage

  There are typically three forms of garage keepers coverage:

  1. Legal Liability

Covers damage only if you're legally liable — meaning you or your employees were negligent. This is the most basic (and cheapest) form but leaves gaps.

2. Direct Primary

Covers damage regardless of fault. If a customer's boat is damaged by a storm, theft, or vandalism while at your shop, you're covered even though you weren't negligent.

3. Direct Excess

Similar to direct primary, but pays only after the customer's own insurance. This can be a cost-effective middle ground.

How Much Coverage Do You Need?

Consider these factors when determining your limits:

- Maximum boat value: What's the most expensive boat you might have at your shop?

• Total exposure: How many boats might be at your facility at once?

• Storage operations: Do you store boats seasonally, increasing your exposure?

  Most boat repair shops carry between $250,000 and $1,000,000 in garage keepers coverage. We recommend limits that would cover your worst-case scenario — typically the total value of boats that could be at your shop at any given time.

  Common Claims Scenarios

  Here are real-world situations where garage keepers coverage has protected our clients:

  1. Storm damage: A hailstorm damaged four boats in an outdoor storage yard

2. Fire: An electrical fire in the shop spread to two customer boats 3. Theft: Expensive electronics were stolen from boats awaiting repair 4. Employee accident: A forklift operator accidentally dropped a boat off the lift 5. Sea trial mishap: A mechanic ran aground during a test run

Reducing Your Risk

While insurance protects you financially, implementing good practices can reduce claims:

- Maintain a detailed inventory of customer boats and their condition

• Take photos of boats when they arrive

• Secure your facility with cameras and alarm systems

• Train employees on proper boat handling procedures

• Keep fire extinguishers accessible and maintain electrical systems

  Get the Right Coverage

  Every boat repair business is different. Let us help you determine the right garage keepers limits and coverage form for your specific operation.

  Call us at (844) 967-5247 for a free coverage review, or get a quote online in minutes.