What landlords require of auto repair and detailing shops: garage lease insurance clauses and how to prove you meet them

What your landlord requires when the tenant is an auto shop

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An auto repair or detailing lease typically requires garage liability or general liability of $1M per occurrence and $2M aggregate with the landlord as additional insured, garagekeepers coverage for customers' vehicles in your care, pollution or environmental wording for oil, solvents and any tanks, replacement-cost property on lifts, compressors, diagnostic equipment and the build-out, business income, workers' compensation, and a waiver of subrogation; leases on former gas-station sites add environmental baseline conditions.

Reviewed by Michael LaBarbera, Licensed property & casualty agent, Provident Financial Group · Reviewed Oct 11, 2026 Updated Oct 14, 2026

Typical requirements and how to check them
Requirement	What they usually ask for	How to check what you have
Garage liability or general liability	$1M each occurrence / $2M aggregate on a garage policy or a general liability policy written for auto service, with the landlord and property manager as additional insureds, primary and non-contributory	Dec page limits and the additional insured form; a garage policy combines premises, operations and auto liability for the shop, which a standard BOP does not.
Garagekeepers coverage	A per-location limit high enough to cover the customers' vehicles on the premises at any time, on a direct primary basis, for fire, theft, vandalism and collision while in your care	The garagekeepers section of the garage policy: the per-location limit, the deductibles and whether it is legal liability only or direct primary; count the cars you hold overnight.
Pollution and fluids	Coverage for sudden discharge of oil, coolant, fuel and solvents, and for any above-ground or underground tanks on site; leases on former service stations attach an environmental baseline report	A pollution liability endorsement or a separate contractors' or premises pollution policy; standard general liability excludes pollution almost entirely. Tank coverage is its own policy where tanks exist.
Property on lifts, equipment and improvements	Replacement cost on lifts, compressors, alignment and diagnostic equipment, tools, paint booths and the build-out	Business personal property and tenant improvements limits with equipment breakdown; scheduled items for high-value diagnostic and alignment machines.
Business income	Rent and continuing expenses through a covered closure, commonly twelve months	Business income line on the property policy and its period of restoration.
Workers' compensation and employers' liability	Statutory plus employers' liability of $500K or $1M	Information page of the policy, Part Two limits.
Waiver of subrogation and umbrella	Waiver in favour of the landlord on each policy; an umbrella of $1M to $2M where the landlord's lender requires it	Endorsements on each policy; a separate umbrella scheduling the garage policy and workers' compensation.

Requirement

What they usually ask for

How to check what you have

Garage liability or general liability

$1M each occurrence / $2M aggregate on a garage policy or a general liability policy written for auto service, with the landlord and property manager as additional insureds, primary and non-contributory

Dec page limits and the additional insured form; a garage policy combines premises, operations and auto liability for the shop, which a standard BOP does not.

Garagekeepers coverage

A per-location limit high enough to cover the customers' vehicles on the premises at any time, on a direct primary basis, for fire, theft, vandalism and collision while in your care

The garagekeepers section of the garage policy: the per-location limit, the deductibles and whether it is legal liability only or direct primary; count the cars you hold overnight.

Pollution and fluids

Coverage for sudden discharge of oil, coolant, fuel and solvents, and for any above-ground or underground tanks on site; leases on former service stations attach an environmental baseline report

A pollution liability endorsement or a separate contractors' or premises pollution policy; standard general liability excludes pollution almost entirely. Tank coverage is its own policy where tanks exist.

Property on lifts, equipment and improvements

Replacement cost on lifts, compressors, alignment and diagnostic equipment, tools, paint booths and the build-out

Business personal property and tenant improvements limits with equipment breakdown; scheduled items for high-value diagnostic and alignment machines.

Business income

Rent and continuing expenses through a covered closure, commonly twelve months

Business income line on the property policy and its period of restoration.

Workers' compensation and employers' liability

Statutory plus employers' liability of $500K or $1M

Information page of the policy, Part Two limits.

Waiver of subrogation and umbrella

Waiver in favour of the landlord on each policy; an umbrella of $1M to $2M where the landlord's lender requires it

Endorsements on each policy; a separate umbrella scheduling the garage policy and workers' compensation.

Why garage leases read differently

Auto shops combine three exposures landlords worry about: customers' vehicles stored on site, fluids that can contaminate the property, and heavy equipment that can start a fire. The exhibit answers each with garagekeepers, pollution wording and property coverage, on top of the liability, business income and workers' compensation every lease asks for.

The lines a garage lease names

Garage liability or a general liability form written for auto service carries the additional insured, primary and waiver endorsements. Garagekeepers covers the cars in your care. Pollution liability answers for fluids and tanks, which standard forms exclude. Property covers lifts, equipment and the build-out at replacement cost. Business income keeps rent flowing after a fire. Workers' compensation is statutory. An umbrella appears where the landlord's lender insists.

How to check your policies against the lease

Confirm the policy type first: a garage policy or a general liability form that does not exclude auto service. Match the limits and the additional insured form. Count the vehicles on site at your busiest point and compare to the garagekeepers per-location limit and basis. Confirm pollution coverage and any tank policy. Check property limits against an equipment list, find the business income line, and confirm the waiver on each policy.

Keep the certificate current

Garage leases require a renewed certificate at each renewal and notice of cancellation. A live certificate link stays current as policies renew and notifies the landlord when a line changes, with the official PDF attached.

Questions people actually ask

What is the difference between garage liability and garagekeepers?

Garage liability covers injuries and property damage you cause, including test drives. Garagekeepers covers damage to customers' vehicles while they are in your care, custody or control, which liability policies exclude. Leases ask for both because the landlord does not want a customer's car claim pointed at the building.

Why does the lease talk about pollution for a detailing shop?

Because solvents, degreasers and wash water are regulated discharges and the landlord is the party of record if the site is contaminated. Even a detailing operation should carry a pollution endorsement and confirm where wash water drains.

The lease has an environmental baseline exhibit. Does insurance cover that?

The baseline documents conditions at move-in so the landlord can show what you did or did not cause. Pollution liability covers your discharges during the term; it does not cover pre-existing contamination, which is why the baseline matters to you.

Should garagekeepers be direct primary or legal liability?

Direct primary pays regardless of fault and is what customers expect when their car is damaged in a hailstorm on your lot. Legal liability pays only when you are negligent. Leases rarely specify; customers and reviews do.