Alabama Garage Liability Insurance

Barbee Jackson Insurance is Alabama’s leading provider of Garage Liability Insurance helping hundreds of dealers and repair shops find the coverage they need at a price they can afford. We work with all the leading Garage Liability Insurance carriers to provide our clients outstanding coverage options, fast and easy claims handling, and the expert advice you’ve been looking for in an insurance agency. Call us today to get started (850) 389-2001.

Program Eligibility – Auto Dealers & Repair Shops

  • Franchised Dealers | Sales & Service
  • Non-Franchised Dealers | Sales & Service
  • Collision Centers
  • Auto Repair Shops
  • All Other types of repair facilities
  • Detailers

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Alabama Dealer Garage Liability & Bond Requirements

Alabama requires all licensed dealerships to carry a Surety Bond, also referred to as a Dealer Bond, in the amount of $50,000 and a Garage Liability policy with limits of $75,000. Garage Liability coverage is split into two limits, Auto and Other than Auto.

Auto means liability in the event of an auto accident that you are found legally liable. This provides property damage and bodily injury coverage for others. This coverage is liability for others only and does not provide coverage for physical damage to your vehicle.

Other than Auto is the lot liability limits. This provides coverage in the event of a slip and fall.

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Dealership Insurance – Coverage Options

Blanket Dealer Open Lot
Provides physical damage coverage to your new and used inventory
Garage Keepers
Protects customers vehicles while you are in care, custody, and control
Commercial Auto
Coverage for scheduled business autos owned by the dealership
Business Interruption
Protects your business from loss of income from a covered loss
Workers Compensation
Wage replacement and medical benefits to an employee that was injured on the job
Errors and Omissions
Protects your business from claims caused by negligent acts, errors or omissions
Truth in Lending
Pays for damages resulting from an insured failing to complete the loan paperwork correctly causing a different term rate
Odometer & Prior Damage
Payment of defense costs may be provided if a suit is made pertaining to odometer reading or damage disclosures
False Pretense
Protects against losses due to voluntarily parting with a vehicle if induced to by any fraudulent act

Repair Shop, Collision Centers, and Detailers

The State of Alabama requires these types of facilities to carry $75,000 in Garage Liability, the Surety Bond is not required. The limit is split into Auto and Other than Auto.

Auto in the event of an at-fault accident that you are found legally liable.

Other than Auto is the lot liability limit to provide coverage in the event of a slip and fall.

Garage Operations – Coverage Options

Garage Keepers
Protects customers vehicles while in your care, custody and control
Commercial Auto
Coverage for scheduled autos owned by the dealership, such as a tow truck or service vehicle
Business Interruption
Protects your business from loss of income from a covered loss
Workers Compensation
Wage replacement and medical benefits to an employee that was injured on the job
Business Interruption
Protects your business from loss of income from a covered loss
Tools and Equipment
Provides coverage against loss of tools and equipment used in the business

Frequently Asked Questions

Frequently Asked Questions About Alabama Garage Liability Insurance

What is the minimum garage liability requirement in Alabama? Dealerships need $75,000 garage liability (split limits) plus a $50,000 surety bond. Repair shops need $75,000 garage liability.

How does garagekeepers differ from garage liability? Garage liability covers general operations and third-party claims. Garagekeepers specifically protects customer vehicles in your care—legal liability if at fault, or direct primary for no-fault incidents.

What factors affect garage liability insurance costs? Claims history, business size, services (e.g., towing), number of vehicles/employees, limits, and deductibles.

Do I need additional coverage? Many add garagekeepers, open lot for inventory, commercial auto, or workers comp for full risk management.

Protect Your Alabama Auto Business Today

Don't risk fines, lawsuits, or downtime—get compliant Alabama garage liability insurance that safeguards your dealership or shop.

Call (850) 389-2001 now for a personalized quote. Our experts are ready to help!

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