What is garage keepers coverage in fleet insurance?

Complete Guide to Garage Keepers Coverage in Fleet Insurance

Why This Question Matters for Colorado and Utah Residents

For fleet-based businesses in Colorado and Utah—especially those offering repair, service, or storage—garage keepers coverage is essential protection. Local factors like severe hail in the Front Range, higher rates of auto theft, and regulatory compliance make having this coverage more than just a smart choice—it's a business need.

• Extreme weather & hail risk: Colorado fleets face the nation's second-highest frequency of hail claims, averaging $6,000 per damaged vehicle, with June–August being peak months for losses.
• Customer trust & business reputation: A garage keepers policy reassures your clients that their vehicles are financially protected while in your custody—critical for repeat business and referrals.
• Legal & regulatory demands: Both states enforce strict liability for damage to customer vehicles, and insurers are required to clearly disclose deductibles and exclusions for certain risks (e.g., hail damage) in commercial policies.

What Most People Get Wrong

Many business owners assume that standard general liability or fleet insurance automatically covers customer vehicles left for repair or storage, but that's not the case—these policies typically exclude damages to vehicles in your care, custody, or control.

Some also underestimate the potential impact of regional hazards: with 48% of all Colorado fleet insurance claims tied to weather, a single uncovered incident can cost $30,000+ and jeopardize a business.

The Complete Picture

Garage keepers coverage is a specialized add-on (or standalone policy) tailored for any operation that parks, repairs, details, or stores vehicles they do not own. When a covered event—such as hail, fire, theft, or vandalism—damages a customer's car while at your shop, the policy can cover repair or replacement costs, protecting both you and your client from unexpected financial strain.

It is especially critical in Colorado and Utah where businesses that handle even a handful of customer vehicles can be exposed to massive losses during seasonal hailstorms or break-ins. This coverage also ensures that your operations comply with state insurance laws and helps maintain a reputation for professionalism and reliability in local communities.

Making the Right Decision for Colorado and Utah Residents

Question 1: Does your business ever keep customer vehicles overnight or during busy weather seasons?

If so, you are exposed to risks unique to this region—including severe hail, flash floods, and higher rates of theft/vandalism—especially along the Front Range and in urban Utah. Smart decision-making involves:

• Reviewing the number of customer vehicles you regularly accommodate (even temporarily)
• Evaluating your business location: Is it in a hail corridor or high-theft area?

Question 2: What would happen if multiple customer cars were damaged at once?

Calculate the combined cost of repairs and potential business loss. In Colorado, a single severe hailstorm can generate $6,000+ of damage per vehicle. Factoring in business downtime (averaging $1,800/day lost revenue) highlights the importance of comprehensive protection like garage keepers coverage.

Question 3: As your fleet business grows, will your insurance adapt with you?

Regulations change, risks increase, and your insurance needs will evolve—especially with factors like population growth in Colorado’s I-25 corridor or expanding operations in Utah’s Wasatch Front. Regular policy reviews and working with a local independent expert (like FoCoIns) helps ensure that your coverage keeps up with your business.