The ACORD 40 Garage Application is used to apply for garage insurance — a specialty commercial line that covers auto dealers, auto repair shops, body shops, parking garages, and other auto-related businesses. Garage insurance is unique because it covers two exposures that standard GL and commercial auto policies do not address well: garage operations liability and garagekeepers liability.
The ACORD 40 is used for: • Auto dealers (new, used, wholesale) • Auto repair and service shops • Auto body shops and paint shops • Muffler, tire, and oil change shops • Parking lots and parking garages • Car washes • Tow truck operators (in some cases) • Auto auctions
A standard commercial general liability policy is not designed for auto-related businesses. The "automobile hazard" exclusion in most GL policies excludes claims arising from the operation of autos — which is the primary exposure for most garage operations.
Garage liability covers these excluded exposures: the operation of garage facilities, the use of customer vehicles, and the products and completed operations arising from automotive work.
Garagekeepers liability covers damage to customer vehicles while they are in the insured's care, custody, or control. If a repair shop repairs a car and it is stolen from their lot overnight, garagekeepers covers the customer's vehicle.
This is completely separate from garage liability — it covers property in the insured's care, not third-party bodily injury and property damage. The ACORD 40 collects information about the total value of customer vehicles in care at any one time (this is called the garagekeepers limit).
Auto dealers need physical damage coverage on their inventory — vehicles on the lot that they own and have not yet sold. This is rated separately from other coverages and is based on the total value of inventory.
The ACORD 40 collects information about inventory value, the location where vehicles are stored, and the type of vehicles in the dealership inventory.
Underwriters evaluating a garage account want to know:
• What types of vehicles does the shop work on? (Import, domestic, exotic, commercial trucks?) • What types of repairs? (General repair, transmission, engine, body work, electrical?) • How many vehicles are typically in care at one time? • Is overnight storage secure? (Fenced, locked, lit?) • Any prior garagekeepers claims? • Does the shop use customer vehicles for road testing? How far?
Underestimating the garagekeepers limit — setting it too low for the actual value of customer vehicles on the lot
Not including all types of work the shop performs (failing to disclose specialty work)
Missing the dealer inventory coverage for dealers who also do repairs
Not disclosing road testing exposure and the distance vehicles are driven
Confusing garage liability with garagekeepers — they cover different things
Send your client a plain-English intake link. When they finish, the completed ACORD 40 and all required companion forms are generated and ready to submit.