12.4 Garage Coverage Form and Garagekeepers

Arkansas Property & Casualty Insurance State

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1 Standalone Coverage Map

Standalone Coverage Map

2 Introduction: Arkansas Property & Casualty Insurance Exam Overview

Arkansas Property & Casualty Exam Overview

3 National Portion: Insurance Fundamentals

1.1 Risk, Hazards, Perils, and the Law of Large Numbers 1.2 Insurable Interest, Indemnity, and Other Insurance Principles 1.3 Insurance Contract Law and Elements 1.4 Policy Structure: Declarations, Insuring Agreement, Conditions, Exclusions 1.5 Parties, Agents vs. Brokers, and Authority

4 National Portion: Property Insurance Concepts

2.1 Causes of Loss / Named-Peril vs. Open-Peril 2.2 Valuation: ACV, Replacement Cost, and Functional Value 2.3 Coinsurance and the Coinsurance Formula 2.4 Deductibles, Limits, and Loss Settlement 2.5 Common Property Policy Conditions and Clauses

5 National Portion: Dwelling Policies (DP)

3.1 Dwelling Policy Forms DP-1, DP-2, DP-3 3.2 Dwelling Coverages A-E and Other Coverages 3.3 Dwelling Perils, Conditions, and Endorsements 3.4 Mobile Home and Specialized Dwelling Coverage

6 National Portion: Homeowners Policies - Forms & Section I

4.1 Homeowners Forms HO-2 through HO-8 and Eligibility 4.2 Section I Coverages A-D and Additional Coverages 4.3 Section I Perils Insured Against and Exclusions 4.4 Replacement Cost vs. ACV and Loss Settlement in Homeowners

7 National Portion: Homeowners Policies - Section II & Endorsements

5.1 Section II Coverages E (Liability) and F (Medical Payments) 5.2 Homeowners Conditions and Duties After Loss 5.3 Common Homeowners Endorsements (scheduled property, water backup, ordinance or law)

8 National Portion: Personal Auto Policy - Liability & Injury

6.1 Personal Auto Policy Structure and Eligibility 6.2 Part A Liability and Supplementary Payments 6.3 Part B Medical Payments 6.4 Part C Uninsured/Underinsured Motorists

9 National Portion: Personal Auto Policy - Physical Damage & Duties

7.1 Part D: Coverage for Damage to Your Auto 7.2 Exclusions and Part E: Duties After an Accident 7.3 Part F: General Provisions, Endorsements, and No-Fault Concepts

10 National Portion: Liability Insurance Concepts

8.1 Negligence, Torts, and Legal Liability 8.2 Defenses, Damages, and Vicarious Liability 8.3 Occurrence vs. Claims-Made Triggers 8.4 Bodily Injury, Property Damage, and Personal/Advertising Injury

11 National Portion: Commercial Property Insurance

9.1 Commercial Package Policy Structure and Common Policy Conditions 9.2 Building and Personal Property Coverage Form (BPP) 9.3 Causes of Loss Forms (Basic, Broad, Special) 9.4 Business Income and Extra Expense 9.5 Commercial Property Endorsements and the BOP

12 National Portion: Commercial General Liability - Coverages

10.1 CGL Coverage A: Bodily Injury and Property Damage Liability 10.2 CGL Coverage B: Personal and Advertising Injury, Coverage C: Medical Payments 10.3 Who Is an Insured and Supplementary Payments

13 National Portion: Commercial General Liability - Limits, Triggers & Exclusions

11.1 CGL Limits of Insurance and Aggregates 11.2 Occurrence vs. Claims-Made CGL and Retroactive Dates 11.3 Key CGL Exclusions and Endorsements

14 National Portion: Commercial Auto Insurance

12.1 Business Auto Coverage Form and Covered Auto Symbols 12.2 Commercial Auto Liability and Physical Damage 12.3 Motor Carrier / Trucking and MCS-90 12.4 Garage Coverage Form and Garagekeepers 12.5 Commercial Auto Endorsements

15 National Portion: Workers Compensation

13.1 Workers Compensation Statutory Background and Benefits 13.2 Part One (Workers Comp) and Part Two (Employers Liability) 13.3 Premium Basis, Experience Modification, and Classification 13.4 Other States, USL&H, and Federal Acts 13.5 Workers Comp Exclusions and Endorsements

16 National Portion: Other Commercial Lines - BOP, Crime & Marine

14.1 Businessowners Policy (BOP) in Depth 14.2 Crime and Fidelity Coverage 14.3 Inland Marine and Nationwide Marine Definition 14.4 Ocean Marine Coverages (Hull, Cargo, Freight, P&I)

17 National Portion: Other Commercial Lines - Specialty & Professional

15.1 Farm and Agricultural Coverage 15.2 Commercial Umbrella and Excess Liability 15.3 Professional Liability and Errors & Omissions 15.4 Directors & Officers and Employment Practices Liability

18 National Portion: Other Commercial Lines - Surety, Flood & Specialty

16.1 Surety and Fidelity Bonds 16.2 National Flood Insurance Program (NFIP) 16.3 Cyber, Aviation, and Other Specialty Lines

19 National Portion: Insurance Regulation & Market Conduct

17.1 State Regulation, Licensing, and the McCarran-Ferguson Act 17.2 Rates, Forms, Solvency, and Guaranty Associations 17.3 Producer Authority, Fiduciary Duty, and Company Operations

20 National Portion: Ethics & Unfair Trade Practices

18.1 Unfair Trade Practices and Unfair Claims Settlement 18.2 Producer Ethics, Errors & Omissions Exposure, and Fiduciary Conduct 18.3 Privacy, Fraud, and Consumer Protection

21 Chapter 1: Arkansas P&C Insurance Regulation & Licensing

1.1 Arkansas Insurance Department 1.2 Arkansas P&C Producer Licensing Requirements 1.3 Arkansas Producer Responsibilities

22 Chapter 2: Arkansas Property Insurance

2.1 Arkansas Homeowners Insurance 2.2 Arkansas Commercial Property Insurance

23 Chapter 3: Arkansas Casualty & Auto Insurance

3.1 Arkansas Auto Insurance Requirements 3.2 Arkansas Liability Insurance 3.3 Arkansas Workers' Compensation Insurance

24 Chapter 4: Arkansas Ethics & Professional Conduct

4.1 Ethical Practices and Consumer Protection

12.4 Garage Coverage Form and Garagekeepers

Key Takeaways Explain This Topic AI

The Garage Coverage Form (CA 00 05) blends auto liability, general liability, and a bailee exposure for businesses like repair shops and dealers.

Garagekeepers covers physical damage to customers' autos in the insured's care on three bases: Legal Liability, Direct Primary, or Direct Excess.

Legal Liability pays only on negligence; Direct Primary pays regardless of fault and primary; Direct Excess pays over the customer's own policy.

A customer driving a covered auto is an insured only if no other insurance applies, and then only to state minimum limits.

A dealer's own inventory is insured under Dealers physical damage, not Garagekeepers, which is for customers' autos only.

Last updated: June 2026

The Garage Coverage Form (CA 00 05)

Auto dealers, repair shops, service stations, parking facilities, and body shops have a blended exposure: they have auto liability (test-driving, moving customers' cars) AND general liability (premises, products/completed operations) AND a bailee exposure for customers' cars in their care. The Garage Coverage Form (ISO CA 00 05) packages these into one form. (Franchised new-car dealers more often use the broader Dealers form / CA 00 25 plus the Garage auto pieces.)

The Garage form has three principal coverages: Auto-related liability , General (premises/operations) liability for the garage business, and Garagekeepers coverage for damage to customers' autos left in the insured's care.

Garagekeepers Coverage – the three options

Garagekeepers responds to physical damage to a customer's auto in the insured's care, custody, or control. Three coverage triggers can be selected, in order of breadth and cost:

Legal Liability – pays only if the insured is legally liable (negligent) for the damage. Cheapest.

Direct Primary – pays for covered damage whether or not the insured is liable, and pays before the customer's own insurance.

Direct Excess – pays for covered damage whether or not liable, but only excess over the customer's own collision/comprehensive coverage.

Garagekeepers covers the same perils as auto physical damage: comprehensive (or specified causes of loss) and collision, each with its own deductible (often a small per-auto deductible plus a larger per-loss/event deductible for theft and vandalism).

The Garagekeepers limit of insurance is shown per location and is the most the insurer pays for all customers' autos damaged in one event —so a hailstorm flattening 40 cars on the lot is capped at that single per-location limit, not multiplied by the number of cars. Selecting too low a limit relative to peak inventory on the lot is the classic underinsurance trap for service stations and dealers.

Worked example – Direct Excess vs. Legal Liability

A customer's $30,000 car is destroyed by fire in the insured's shop. The customer carries comprehensive insurance with a $500 deductible; the shop's Garagekeepers has a $250 deductible.

Legal Liability basis: If the fire was NOT the shop's fault (e.g., spontaneous electrical fault in the customer's own car), the shop owes nothing—so Garagekeepers Legal Liability pays $0 . The customer relies on their own policy.

Direct Excess basis: The customer's insurer pays $30,000 − $500 = $29,500 first. Garagekeepers then covers what the customer's policy did not—here the $500 deductible , minus the shop's $250 Garagekeepers deductible = $250 (the shop pays excess only).

Direct Primary basis: Garagekeepers pays first: $30,000 − $250 = $29,750 , regardless of fault, then may subrogate.