Yes, garagekeepers insurance generally covers a customer’s vehicle if it is stolen from your Pennsylvania lot overnight, provided the policy includes comprehensive coverage. This specific insurance is designed to protect vehicles left in your care, custody, or control against theft, vandalism, and severe weather events.
Understanding Theft Protection for Your PA Auto Shop
Care, Custody, and Control: Standard commercial liability policies exclude property that you are actively holding or working on. Garagekeepers coverage bridges this gap, stepping in when a customer hands over their keys and leaves their vehicle on your premises.
Comprehensive Coverage is Key: Garagekeepers insurance is typically broken down into collision and comprehensive perils. To be protected against a break-in and theft from your lot, the policy must be structured to include comprehensive coverage, not just collision.
Direct Primary vs. Legal Liability: If a vehicle is stolen, a “Direct Primary” garagekeepers policy will typically pay out regardless of who is at fault, making the claims process much smoother for the customer. A “Legal Liability” setup only pays if the shop is proven to be legally negligent in the theft.
What should you do next?
If you are reviewing your policy, make sure you aren’t overpaying or leaving yourself exposed. Check out the complete list of common questions at our Pennsylvania Business Insurance FAQs, or request a quick, no-pressure policy review to see if we can improve your coverage.