If your business holds customer vehicles for repairs, service, or storage, Garagekeepers Coverage is one of the most important parts of your garage policy.
The key difference comes down to one question:
Does the policy pay even if you weren't at fault?
Direct Primary
Direct Primary is the broader option.
If a customer's vehicle is damaged by a covered loss while in your care, the policy can respond even if your business did nothing wrong.
Example: Hail damages a customer's vehicle parked at your shop.
Legal Liability
Legal Liability generally requires your business to be responsible for the damage before coverage applies.
Example: An employee accidentally damages a customer's vehicle while moving it.
Don't Confuse This With Comprehensive & Collision
This is where many garage owners get confused.
Comprehensive & Collision = What happened
Direct Primary & Legal Liability = How the policy responds
The Bottom Line
Direct Primary generally provides broader protection, while Legal Liability may offer a lower premium but can be more limited in certain claim situations.
Before your next renewal, ask:
"Is my Garagekeepers coverage Direct Primary or Legal Liability?"
The answer can make a big difference when a customer vehicle is damaged while in your care.