Definition: What does “garage liability” cover when EVs are charging?
Garage liability generally covers your auto business for bodily injury and property damage arising from your operations and use of autos. It does not usually cover physical damage to a customer’s car left in your care. Damage to a customer’s vehicle while it’s on your premises (including while it’s charging) is usually addressed by Garagekeepers (GK) coverage, which is designed for vehicles in your care, custody, or control (CCC).
EV charging adds complexity: risks such as fires, electrical malfunctions, or tripping hazards (e.g., cords) may fall under garage liability—but coverage depends on policy wording and risk management controls.
Why should auto shops and insurers care in 2025?
- New risks at the bay: EV battery and charging incidents (thermal runaway, cable trips, electrical faults) can involve high heat, re-ignition, and specialized response.
- Coverage ambiguity: Many policies predate widespread EV charging and may be silent on charging-related scenarios.
- Perceived Hazards: Insurers may hike premiums or exclude coverage unless special fire safety, electrical infrastructure, or other mitigations are in place
- Underwriting scrutiny: Insurers increasingly ask for fire protection, certified EVSE, cord management, and documented safety practices before offering favorable terms.
- Cyber exposures: Networked chargers introduce data and system risks that may sit under cyber/privacy requirements rather than traditional P&C forms.
What wording should I check in my policy?
- Garagekeepers (CA 99 37): Do you carry Legal Liability, Direct Primary, or Direct Excess? These determine who pays first and whether fault must be proven.
- CCC Exclusion: Standard liability (CGL/garage liability) often excludes damage to property in your care, custody, or control—which is why GK is critical.
- “Autos left with you” definition: Confirm that customer cars left for service/charging are clearly included.
- Per‑auto and location limits: Check any sublimits or aggregates for customer vehicles; confirm off‑premises/valet/overflow lots if you move cars to charge.
- Property/Equipment: Make sure your chargers (EVSE), cords, pedestals, and related gear are covered for fire, vandalism, and business interruption.
- Cyber/Privacy: If chargers are networked, ensure coverage for data breaches, system downtime, or malicious control.
- “Customer vehicle damage”: Is charging included under operations or service-related coverage?
- “Premises liability” and coverage for accidents involving cords, tripping, or fire.
- “Equipment coverage”: Does property or business-interruption insurance cover damage to charging stations?
- Policy exclusions tied to unusual hazards like EV battery fires.
Quick scenarios: Are customer cars covered while charging?
| Scenario | Likely Coverage Path (verify your wording) |
|---|---|
| A customer’s EV catches fire at your Level 2 charger overnight. | Garagekeepers for the customer’s car (CCC). Property for building/EVSE damage. Garage liability may address third‑party injury/property if your operations are implicated. |
| A customer trips over a charging cable in the service lane. | Premises/garage liability (BI) if negligence alleged; implement cord management to reduce risk. |
| Vandalism damages your chargers; you must close bays for a week. | Property for charger damage; Business Interruption if scheduled. Consider equipment breakdown endorsements if applicable. |
| A car is damaged while you reposition it to an outdoor charger. | Garagekeepers (vehicle in CCC). If you only carry legal liability, fault typically must be proven; Direct Primary pays regardless of fault. |
Who pays for what? —Garage Liability vs. Garagekeepers
- Garage Liability: Your operations exposures (e.g., slip/trip hazards, some third‑party property damage). Not designed to insure the customer’s car itself in your possession.
- Garagekeepers: Physical damage to customer vehicles in your CCC—parked, being serviced, moved, or charging.
Where do safety codes and regulations come in?
EV charging equipment should meet electrical codes and listing requirements (e.g., NEC Article 625, UL‑listed EVSE) and, where applicable, federal standards for public chargers (uptime, interoperability, cybersecurity). Following these reduces risk and can influence underwriting.
How do I avoid gaps? A printable shop checklist
- Confirm GK options: Know whether you have Legal Liability, Direct Primary, or Direct Excess. If you regularly park/charge customer cars, consider Direct Primary.
- Set the right limits: Per‑vehicle and location aggregates high enough for EV values; add “customers’ loss of use” if available.
- Document CCC controls: Key custody, overnight parking plans, camera coverage, and cord management to cut trip hazards.
- Harden EVSE: Use UL‑listed chargers, dedicated circuits per NEC 625, GFCI where required, bollards, signage, emergency shutoff, and routine maintenance logs.
- Upgrade fire readiness: Train staff on EV fire response basics, isolation procedures, and coordination with local fire guidance.
- Protect your income: Add Property/Business Interruption for charger damage/downtime.
- Address cyber/privacy: For networked chargers, align with data privacy and cybersecurity controls; consider a cyber rider/policy.
- Third‑party agreements: If chargers are owned/operated by a vendor, allocate liability and insurance in contracts (indemnity, additional insured, maintenance, response SLAs).
- Train & update: Brief techs and advisors; keep SOPs for connecting/disconnecting, moving cars to charge, and incident reporting.
Frequently Asked Questions (plain‑English)
Are customer cars covered while charging at my shop?
Usually yes—if you carry Garagekeepers. The car is in your care, custody, or control, so GK is the form that typically applies. Garage liability alone usually won’t pay for damage to the customer’s car in your possession.
What’s the difference between GK Legal Liability vs. Direct Primary?
Legal Liability pays when your shop is legally at fault. Direct Primary pays regardless of fault and doesn’t force your customer to file under their own auto policy first. Direct Excess can sit above the customer’s own insurance if you’re not at fault.
Do I need special coverage for the charger hardware?
Yes—your Property policy (and sometimes Equipment Breakdown) should schedule the EVSE. Consider Business Interruption if downed chargers slow operations.
Do cyber or privacy rules apply to shop chargers?
Public/networked chargers may be subject to cybersecurity and data privacy expectations. While federal rules target federally funded public networks, adopting those practices is smart risk management for any site.
What safety practices help underwriting?
UL‑listed EVSE, dedicated circuits per NEC 625, GFCI where required, clear cable routing, signage, staff training, and cooperation with local fire guidance improve safety—and can support better insurance terms.
Bottom line
To avoid costly surprises, treat EV charging as a Garagekeepers exposure for customer vehicles, keep property and business interruption in mind for the chargers, and close the loop with cyber and safety controls. Align your wording now—before a claim tests the gap.
Outbound Links, Citations & Sources
- Insurance Journal – Garage Liability or Garagekeepers? Options incl. Direct Primary/Excess
- ISO Garage Coverage Form CA 00 05 (NY OGS PDF)
- Risk Strategies – EV charging: risk management & insurance planning
- Federal Register – NEVI EV charging standards (incl. cybersecurity)
- eCFR – 23 CFR Part 680: Interoperability & Plug‑and‑Charge
- Joint Office – NEVI 2023–2024 Annual Report (cyber coordination)
- Washington State Patrol – EV Fires Study (environmental/response considerations)
Juan Cruz
