What is GKLL?
GKLL, or Garagekeepers Legal Liability insurance, provides protection for businesses that take custody of customer vehicles. It covers damage to those vehicles while they are in your care, custody, or control. This type of insurance is especially important for businesses like auto repair shops, valet services, and parking garages that regularly handle customer vehicles.
Who Needs It
Garagekeepers insurance is essential for any business that temporarily possesses customer vehicles. Common examples include:
- Auto repair shops and service centers
- Car dealerships
- Detailing and car wash businesses
- Valet parking services
- Auto body shops and paint services
If your business stores, services, or parks vehicles you don’t own, you likely need GKLL coverage to protect yourself from potential liability.
What It Typically Covers
GKLL insurance generally covers physical damage to a customer's vehicle caused by:
- Fire
- Theft
- Vandalism
- Extreme weather events
- Collision while in the business’s custody
There are two types of coverage options: legal liability and direct primary. Legal liability covers damage only if the business is found legally responsible. Direct primary covers damage regardless of fault, offering broader protection.
Common Exclusions and Limitations
Garagekeepers policies typically do not cover:
- Personal items left in the vehicle
- Losses due to employee theft
- Intentional damage
- Mechanical breakdowns unrelated to covered perils
Coverage limits and deductibles also apply, so it’s important to review your policy to understand what is and isn’t included.
Factors That Influence Cost
Insurance rates for GKLL coverage vary based on several factors, including:
- Type and size of your business
- Number of vehicles you handle
- Location and crime rate
- Security measures in place (e.g., alarms, gated lots)
- Claims history
Working with an experienced insurance provider can help you find the right balance of coverage and cost.
Proof of Insurance & Compliance
Some states and business contracts may require proof of GKLL insurance. It’s often needed to operate legally or to partner with other companies. Certificates of insurance (COIs) can be issued to demonstrate coverage when needed.
How to Get a Quote
To compare Garagekeepers Legal Liability insurance options tailored to your business, get a quote today.
Frequently Asked Questions
Is Garagekeepers insurance the same as Garage Liability insurance?
No. Garage Liability covers business operations, while GKLL covers customers’ vehicles in your care.
Does GKLL insurance cover customer belongings left in their car?
No, personal property left inside vehicles is typically not covered under GKLL policies.
Am I covered if a customer’s car is stolen from my lot?
Yes, if your policy includes theft as a covered peril and appropriate security measures were in place.
Do I need GKLL if I have general business insurance?
General liability insurance usually doesn’t cover damage to customer vehicles in your custody, so GKLL may still be necessary.
Can I choose how much coverage I need?
Yes, you can select limits and deductibles based on the value and number of vehicles you handle regularly.
Still have questions? Talk to a local insurance expert.