Parking Lot Business Insurance
Getting insurance for your parking lot business is essential.
Parking lot businesses need to be protected against things like claims of personal injury, product liability, and employment-related disputes.
For example, someone could claim that their car was damaged by someone parking it for you and sue you for property damage.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Parking Lot Business
General liability insurance is — generally speaking — one of the most important insurance policies for parking lot businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
While general liability insurance is a valuable coverage option, it may not provide complete protection for your parking lot business. It's worth considering other insurance policies, such as:
- Commercial property insurance to cover equipment like computers and printers
- Workers' compensation insurance for employee injuries or illnesses
- Commercial auto insurance if you use vehicles on your lots for business purposes
When selecting an insurance provider for your parking lot business, you have two main options: traditional brick-and-mortar insurers, such as Nationwide or The Hartford, and online insurers, like Tivly or Next.
Online insurers may be a better choice for small businesses due to their competitive pricing and comparable coverage quality to traditional insurers.
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Cost of General Liability Insurance
The average parking lot business in America spends between $450-$1,000 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a parking lot business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for a Parking Lot Business
Example 1: During winter, a customer slips on the ice in your parking lot before it can be plowed. The fall results in a concussion and fractured arm. General liability insurance would likely cover the injuries.
Example 2: Someone leaves debris in your parking garage’s stairwell, and a customer trips over the debris while hurrying down the stairs. General liability insurance would probably cover any medical treatment they need.
Example 3: A long-time customer notices an old sign on your property that states rates are substantially below what you charge now. They file a false advertising lawsuit, claiming they should’ve only paid the old rate because it’s posted and seeking compensation for their many overpayments. Other customers join and form a class action lawsuit. General liability insurance would likely cover the lawsuit.
Other Types of Coverage Parking Lot Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Commercial Property Insurance
Commercial Property insurance is often used to insure buildings, but it can insure other structures as well. Coverage can be adapted for a parking lot or garage.
When purchasing property insurance, make sure all of your parking lot’s structures are covered. In addition to the pavement itself, you may need protection for lighting fixtures, a booth, a gate, an elevator, a garage, or other items.
Property insurance is commonly available through a business owner’s policy (BOP).
Data Breach Insurance
Assuming your parking lot accepts credit and debit card payments, data breach insurance is an appropriate coverage to get. It may protect against lawsuits arising from stolen card numbers.
This is particularly important coverage if your parking lot has self-serve payment terminals. Criminals can place skimmers on terminals that are unattended, and skimmers sometimes collect many card numbers before anyone detects the equipment. Data breach insurance might help your parking lot compensate customers who had their card numbers stolen this way.
Data breach insurance is available as a standalone policy and through package policies.
Workers’ Compensation Insurance
If you employ workers to monitor your parking lot, they’ll need to be covered by workers’ compensation insurance. This protects against illnesses and injuries that happen at work, and it’s a required coverage for employers in most states.
Commercial Umbrella Insurance
Commercial umbrella insurance is a supplemental form of liability coverage that effectively extends the limits of underlying policies. Many businesses purchase this as an affordable way to get additional protection.
For parking lots, commercial umbrella insurance can be especially important. Even minor car-pedestrian accidents can result in significant injuries and drawn-out lawsuits. If such an accident occurs on your parking lot, there’s a chance that one (or several) of the parties involved will sue your business. Supplemental insurance would help you cover the costs of a potentially expensive covered lawsuit.
Commercial umbrella insurance is frequently bundled with other insurance coverages in a package policy.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your parking lot business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Parking Lot Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Yes. Acquiring business insurance prior to accepting your initial customers is a crucial step toward ensuring your company's financial stability in the long run. Additionally, if you possess company vehicles, obtaining commercial auto insurance is mandatory, and if you have employees, workers' compensation insurance is required.
Not necessarily. Certain exceptions may be written directly into your parking lot business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.