Do You Repair Trucks? You May Need Garagekeepers Coverage


Many trucking companies have a shop on the premises, where they repair trucks they own and provide repair services for others. When equipment that is not owned by the trucking company is damaged on the premises, who is responsible?

Motor carriers may be held legally liable for a loss to a non-owned auto if they do any of the following:

  • Operate a repair shop
  • Provide towing services
  • Store equipment or containers owned by others
  • Allow other truck drivers to park on their premises

For example, servicing an owner-operator’s tractor creates a bailment situation whereby the motor carrier can be held liable when the tractor is held in the carrier’s possession. This may include damage to the contents of the vehicle.

If any of these scenarios apply to your operation, consider adding Garagekeepers coverage to your current policy. Great West’s Garagekeepers coverage provides Physical Damage coverage for  tractors or trailers that are not owned but are in a carrier’s possession for towing, servicing, repair, parking, or storage as part of the carrier’s garage operations.

Garagekeepers coverage is primary coverage and will compensate the vehicle owner even if the motor carrier is not responsible for the loss, such as a loss caused by hail or a tornado.

Additionally, Great West has an added Property-of-Others coverage feature. If a motor carrier is working on someone else’s loaded trailer, the carrier can be held liable for ANY damages caused to the customer’s cargo, including theft. Because it is cargo not owned or being hauled by and under the authority of the motor carrier, the carrier’s cargo policy will not apply.

The Garagekeepers coverage and the Property-of-Others coverage are subject to a per-loss limit of insurance. Obtaining coverage for maximum exposures at any one location is suggested.

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This material is intended to be a broad overview of the subject matter and is provided for informational purposes only. Great West Casualty Company does not provide legal advice to its insureds, nor does it advise insureds on employment-related issues. Therefore, the subject matter is not intended to serve as legal or employment advice for any issue(s) that may arise in the operations of its insureds. Legal advice should always be sought from the insured’s legal counsel. Great West Casualty Company shall have neither liability nor responsibility to any person or entity with respect to any loss, action, or inaction alleged to be caused directly or indirectly as a result of the information contained herein.