Valet Parking Insurance: Garage Liability & Garagekeeper’s Legal Liability Explained

Does your business offer valet parking services? If so, do you have the appropriate valet parking insurance? In order to be legally protected, you will need two different liability coverages in addition to your standard business owners policy (BOP) and your workers compensation insurance policy.

Most BOP insurance coverage will not cover valet parking services offered at your business. In order to protect your liability from claims arising from the valet parking services, you will need to add valet parking insurance, or make sure the valet company you hire has the correct policies.

Garage Liability

Your insurance will first need Non Owned Auto Liability coverage, which may also referred to as Garage Liability. This type of policy will protect your business from claims involving bodily injury and property damage caused by your valet parking attendant if they are involved in an accident with a customer’s vehicle. This policy, however, will not cover the damages caused to your customer’s vehicle. Garage Liability coverage will only protect you and your business from the monetary damages that are caused to the other party as a result of the accident. These damages can include the repairs needed to be made to the other party’s vehicle and any personal injuries sustained by those people within that vehicle.

Garagekeeper’s Legal Liability

In order to have insurance coverage for the vehicle being driven by the valet parking attendant, a second insurance policy is needed. This insurance policy is called Garagekeeper’s Legal Liability coverage. This is the insurance policy that will pay for the damages incurred to your customer’s car due to any negligence by the valet parking attendant. Both Non Owned Auto Liability (Garage Liability) and Garagekeeper’s Legal Liability are optional business owners policy (BOP) coverages. It is recommended that you have both of these coverages so that the valet parking operations at your business are legally protected. If you do outsource the valet services to a contractor, make sure that the contractor provides you with a valid certificate of liability policy along with an additional insured endorsement in the name of your business.

Protect yourself by working with a reputable valet parking company!

For additional information comparing Garage Liability and Garagekeeper’s Legal Liability insurance, click here.

Additional Formalities Besides Valet Parking Insurance

Parking Management Services of America carries all of the necessary insurance that will protect businesses such as restaurants, hotels, and shopping centers from legal liability that may arise from their valet parking service. In addition to these insurance policies, PMSA will also provide your business with the following protection:

• State approved worker’s compensation insurance policy
• All applicable permits including D.O.T., parking occupancy tax, and Police Commissions
• Certificate of insurance with any additional interests for the property owner or property management
• Parking lot surety bond of a minimum of $10,000 per venue in addition to our regular coverage

At Parking Management Services of America, you can rest assured knowing that you are working with a reputable valet parking company that will provide you and your business with all of the required insurance that you will need. We are a member in good standing with the National Parking Association. This means that our company must abide by their required code of ethics.

For more information these insurance policies, contact us online or reach us at 1-800-552-PARK (7275) or 818-546-8586. If you would like to discuss your business and what coverage options you may need, we encourage you to reach out to our parking consultation partners at The Parking Group.