The demand for parking spaces in most urban areas has increased rapidly with the rise in population and the high percentage of vehicle ownership in the United States, making parking a scarce commodity.
These facilities can be expensive to build and costly to maintain. Parking structures—whether open-air lots or multi-level garages—face a range of operational hazards, from vehicle collisions to theft, fire, and employee-related liability.
Parking facilities such as parking lots, parking garages, parking buildings, and other structured environments offer great convenience but can also pose significant risks. Parking lot accidents and injuries can increase liability exposures, as can damages caused by employee negligence or lack of adequate maintenance.
Owners and operators of indoor and outdoor parking facilities—including those offering self-parking or valet services—should consider a well-rounded insurance program to address both property and liability risks. Key coverages to include in your portfolio are:
- Commercial General Liability
- Garagekeepers’ Legal Liability
- Commercial Property
- Commercial Auto
- Workers’ Comp
Parking Facilities Insurance includes the above key coverages and also offers other options to provide comprehensive protection and reduce exposures in the garage or on the lot.
These may include:
- Fidelity & Crime Insurance
- Inland Marine
- Umbrella Insurance
For facilities with valet attendants, Valet Parking Insurance can help address employee handling risks and customer vehicle damage. Operators of multi-level garages may also benefit from Parking Garage Insurance tailored to the unique challenges of enclosed structures, such as fire protection and structural liability.
Selecting the right combination of policies involves assessing traffic volume, hours of operation, number of employees, and whether the facility offers high-value vehicle storage. A risk scenario might include a valet accidentally damaging a customer's luxury car, or a customer slipping on an icy ramp—both of which could lead to costly claims without proper coverage.
Frequently Asked Questions
What types of businesses need Parking Facilities Insurance?
Operators of commercial parking lots, garages, valet services, event venues, and property managers who provide parking access should consider this coverage.
What does Garagekeepers’ Legal Liability cover?
It provides protection in case a customer’s vehicle is damaged while in the care, custody, or control of the parking facility.
Does this insurance cover theft or vandalism?
Coverage for theft or vandalism of vehicles may be available under Garagekeepers’ Legal Liability, depending on the policy terms.
Is valet parking covered under standard policies?
Not always. Valet operations may require additional endorsements or specific valet insurance to address employee liability and customer vehicle damage.
How do I get a quote for Parking Facilities Insurance?
You can request a quote online by providing basic information about your facility, services, and risk exposures.
Still have questions? Talk to a local insurance expert.