Parking Lot Insurance Policy Information

Parking Lot Insurance. Owning and operating a garage may seem like a simple business, but there are many liability risks you face as an owner. When people are on your property, there are at risk of being injured. If a person gets injured on your property, you could be held liable.
Parking facilities can be flat, on-the-ground lots or multi-story above- or below-ground garages. Customers can be charged hourly, daily, or monthly. Facilities can be stand-alone businesses or be owned by another firm. Some have car washing, charging stations for electrically powered vehicles, toilet facilities, or valets.
Some public transit systems offer “park and ride” lots for suburban commuters who ride public transportation into urban areas. Some businesses that own the facilities contract the day-to-day running of the operation to an outside firm.
Having insurance is the best way for you to protect your business. What you need comprehensive insurance to protect your business from the damage of lawsuits. In this post, we'll take a look at some of the different parking lot insurance policies you can get to protect your lot.
Parking lot insurance protects your garage from lawsuits with rates as low as $77/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked parking lot insurance questions:
- What Is Parking Lot Insurance?
- How Much Does Parking Lot Insurance Cost?
- Why Do Parking Lots Need Insurance?
- What Type Of Insurance Do Parking Lots Need?
- What Does Parking Lot Insurance Cover & Pay For?
What Is Parking Lot Insurance?
Parking lot insurance is a type of commercial insurance policy that provides coverage for business owners who own and operate parking lots.
This insurance protects against potential liability claims that may arise from accidents or incidents that occur on the property, such as slip and fall accidents, vehicle damage, theft, and other similar events. It covers the costs of legal defense and settlements or judgments resulting from these incidents, as well as any medical expenses incurred by individuals who are injured while on the property.
Parking lot insurance is typically included as part of a comprehensive commercial insurance package or can be purchased as a standalone policy.
How Much Does Parking Lot Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small parking lot operations ranges from $77 to $89 per month based on location, size, payroll, sales and experience.
Why Do Parking Lots Need Insurance?
Here are some reasons why parking lots need insurance:
Liability Protection: Parking lots can be hazardous, especially if there are slippery or poorly maintained surfaces. If someone gets injured on the property, the owner could be held liable for their medical expenses, lost wages, and other damages. Insurance can help cover these costs and protect the parking lot owner from financial losses.
Property Damage: A parking lot can also be damaged by natural disasters, theft, fire, or other unexpected events. Insurance can help pay for repairs and replacement of damaged property.
Business Interruptions: If a parking lot is closed due to a covered event, the owner could lose income. Business interruption insurance can help replace that lost income, allowing the owner to continue operating their business.
Employee Coverage: If an employee is injured while working on the parking lot, workers' compensation insurance can help cover their medical expenses and lost wages.
Protection of Cars: Insurance can also be purchased to protect the cars parked in the lot. This coverage can help pay for repairs or replacement if a car is damaged while parked on the lot.
In conclusion, having insurance is important for parking lot owners to protect their assets and cover unexpected costs.
What Type Of Insurance Do Parking Lots Need?
When you own a parking lot or large garage, there are things you can do to increase the safety and the security of it. This will reduce the amount of slip and fall type claims you are exposed to.
The best way to minimize cost is to fill potholes, clear sidewalks of obstructions and fix anything you find that can cause damage to the people who use your facilities. Anything you feel an individual may sue your business for you must take the time to have it fixed.
That being said, blow are some of the more common parking lot insurance coverages:
Having liability insurance allows you to protect your business from many of the risks that can destroy it. Financial losses from third-party injury or property damage can be devastating for your garage when you don't have parking lot insurance. Following are some of the different insurance policies you can consider to protect your business:
Commercial General Liability Insurance - Having this type of policy for your business gives you broad protection from many of the risks involved with this business. A parking lot insurance covers you from many of the costs associated with lawsuits against your business. The most common claim against parking lots is 'slip-and-fall' usually after a rain or snow.
Garagekeepers Liability Insurance - parking lots accept their customers cars for parking, and they assume a legal liability for doing do. Garagekeepers liability insurance covers this exposure. It covers the parking lot if a customer's vehicle is damaged due to their negligence while it is in their care, custody or control.
Business Property Insurance - This parking lot insurance policy keeps your business protected from fire, vandalism, smoke or any other event that can cause damage to your property. It also can protect the contents inside the garage and buildings you use for the operation of your parking business.
Business property insurance can also include business interruption coverage. When your business has to cease operations for a period, this is the insurance provides you with the coverage you need. It helps to cover the parts of your business such as rent, employee salaries, and other expenses that occur when your business operations are halted.
Business Owners Policy - This type of parking lot insurance policy is designed to fit the needs of many small businesses. It creates and affordable package for property, liability, and business interruption coverage.
Employee Theft And Crime Coverage - This insurance protects your parking business from any costs associated with theft or dishonesty in your business by employees. This insurance provides coverage for any fraudulent acts in your business. You can't control what your employees do, but at least you can control the type of protection you have when they do something wrong.
Business Auto Insurance - When your business owns vehicles, you must have insurance to protect those vehicles. Commercial auto insurance is how you protect them. With business auto insurance you protect your vehicles if they get in an accident while working for your business.
Workers' Compensation - Workers comp is mandatory in most states for any non owner employees With workers comp, your employees get medical assistance if they are injured while working for you. Any medical cost associated with the injury is covered when you have this insurance for your business. If an employee is injured and the injury results in the death of that employee then this insurance will pay benefits to the surviving family of the victim.
Parking Garage Operations Risks & Exposures

Premises liability exposure is moderate due to public access to the parking lots. Facilities must have a level, smooth, unobstructed surfaces to avoid trips and falls. The parking spaces, traffic flow within the facility, and exits must be lighted and well-marked. Snow and ice should be promptly removed.
If the facility provides services 24 hours a day, the safety of patrons is critical, as the business may be held liable for injuries due to assault or robbery by third parties. Call boxes should be conveniently placed throughout the facility in the event of an emergency. Attendants should be on duty at all times.
Surveillance cameras and security guard services are recommended for high-crime areas. Personal injury exposures include assault, invasion of privacy, and discrimination should there not be enough handicapped parking spaces available to meet local codes.
Garagekeepers exposure comes from the care, custody, and control of the vehicles left in the lots. Fencing or chains should be in place to prevent unauthorized access and theft. Valet parking requires controls and procedures to avoid giving the wrong key to the wrong driver.
Property exposure depends on whether the facility is an open-air lot with only a small shelter house or a full aboveground or belowground parking structure. While exposure to fire is low, all are subject to vehicle and vandalism damage. Parking garages may collapse from earthquakes or the ongoing vibrational movement of vehicles.
Commercial auto exposure is minimal unless there are a number of lots and employees use vehicles to pick up cash for deposits. All drivers should have a valid driver's license and an acceptable MVR. Any owned vehicles must be maintained with documentation kept.
Workers compensation exposure is moderate due to the constant movement of vehicles and from holdup and/or assault. Pay booths located in isolated areas, and especially those open 24 hours per day, are particularly subject to holdups. All employees must be trained in safety procedures to protect themselves and the customer in case of robbery. Protective equipment such as bulletproof cages, surveillance cameras, panic buttons, and guards may be needed.
Crime exposure is high from employee dishonesty and theft of money and securities, from either holdup or safe burglary. Employee dishonesty is controlled through background checks, control of the cash register through surveillance cameras and cash register tapes, disciplined controls, and division of duties. Thieves may be drawn to the accumulation of cash on premises.
Bank drops should be made at irregular intervals throughout the day. As parking lots are targets for holdups, cashiers should be protected. Depending on the area, they may need to stay in a bulletproof enclosure. Security officers, panic buttons, and other techniques should be used to help in curtailing crime. Holdup controls at the lots are best managed by frequent pickups and bank deposits.
Inland marine exposure comes from accounts receivables if the business offers long-term parking and valuable papers and records for permits and contracts. There may be computers used for recordkeeping or signs. Duplicates of all data should be made and kept off premises for easy replication in the event of a loss.
What Does Parking Lot Insurance Cover & Pay For?

Parking lots can be sued for various reasons, including personal injury, property damage, and wrongful death. Insurance can protect parking lots by providing coverage for these types of lawsuits.
Slip and fall accidents: Parking lots can be held liable for injuries sustained by visitors who slip and fall due to wet or uneven surfaces. Insurance coverage can help pay for medical expenses, lost wages, and other damages resulting from the accident.
Vehicle damage: If a visitor's vehicle is damaged in a parking lot, the parking lot may be held liable. Insurance can help pay for repairs or replacement of the vehicle.
Security incidents: If a visitor is the victim of a crime, such as theft or assault, in a parking lot, the parking lot may be sued for failing to provide adequate security. Insurance can help pay for damages resulting from the incident, including medical expenses and lost wages.
Wrongful death: In rare cases, a person may die in a parking lot due to negligence on the part of the parking lot owner or operator. Insurance can help pay for damages resulting from the wrongful death lawsuit, including compensation for the victim's family.
Overall, insurance provides protection to parking lots from lawsuits by covering the cost of damages resulting from covered incidents. It's essential for parking lot owners and operators to have comprehensive insurance coverage to protect themselves and their customers.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7521 Automobile Parking
- NAICS CODE: 812930 Parking Lots and Garages
- Suggested Workers Compensation Code(s): 8392 Automobile Storage Garage, Parking Lot or Parking Station, Valet Service, Cashiers or Counter Personnel & Drivers
7521: Automobile Parking
Division I: Services | Major Group 75: Automotive Repair, Services, And Parking | Industry Group 752: Automobile Parking
7521 Automobile Parking: Establishments primarily engaged in the temporary parking of automobiles, usually on an hourly, daily, or monthly contract or fee basis. Establishments primarily engaged in extended or dead storage of automobiles are classified in Transportation, Industry 4226.
- Garages, automobile parking
- Parking lots
- Parking structures
- Tow-in parking lots
Parking Lot Insurance - The Bottom Line
As an owner of a parking lot or a garage, you should have parking lot insurance policy to protect your business from the many risks you face. Now that you have an idea of the different insurance types available it's a good time to speak with a professional insurance agent and find the right insurance for you.
Additional Resources For Auto Service & Repair Insurance
Read useful small business auto service and repair insurance policy information. In an aotu related business, you need to have the right type of commercial insurance coverage so that your garage, employees, and customers vehices & other property is protected.
- Auto Dealers
- Auto Detailing & Mobile Car Wash
- Auto Dismantlers
- Auto Garage
- Auto Glass Repair Shops
- Auto Paint Shops
- Auto Service Repair
- Auto Supply Parts Store
- Car Rental
- Car Wash
- Gas Station
- Motorcycle Dealers
- Parking Lot
- RV Dealers
- Snowmobile Dealers
- Truck Rental
- Used Car Dealer

The auto service and repair industry is an essential part of the transportation sector, responsible for maintaining and repairing vehicles to keep them running smoothly and safely. However, this industry also comes with inherent risks and liabilities, which is why commercial insurance is necessary to protect both the business and its employees.
First and foremost, the auto service and repair industry deals with hazardous materials and equipment on a daily basis. There is a risk of accidents and injuries occurring in the workshop, and insurance can provide financial protection in the event of a workplace accident or injury.
Additionally, the auto service and repair industry is subject to the risk of property damage. There is a potential for damage to vehicles in the workshop, as well as damage to the business' own property, such as tools and equipment. Business insurance can cover the costs of repair or replacement in the event of such damage.
Furthermore, the auto service and repair industry is vulnerable to liability claims from customers. If a customer's vehicle is not repaired properly, it can result in further damage or accidents on the road, leading to liability claims against the business. Insurance can provide coverage for these types of claims, protecting the business from financial loss.
In conclusion, the auto service and repair industry needs commercial insurance to protect against the risks and liabilities inherent in this line of work. Without insurance, businesses in this industry would be vulnerable to financial loss and legal action, which could ultimately lead to their failure.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income, Equipment Breakdown, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Signs, Valuable Papers and Records, General Liability, Employee Benefits, Environmental Impairment, Underground Storage Tank Liability, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Computer Fraud, Forgery, Goods in Transit, Cyber Liability, Employment-related Practices, Business Automobile Liability and Physical Damage, Garagekeepers and Stop Gap Liability.