Valet Parking Liability

What You Need to Know

Standard general liability policies typically exclude coverage for vehicles in your care, custody, and control, meaning you need specific garage keepers liability coverage. If you operate your own valet service, you need garage keepers liability insurance to cover customer vehicles in your care, and hired and non-owned auto insurance to cover your liability when employees drive customer vehicles.

If you use a third-party valet service, you should require substantial insurance coverage from the contractor, be named as an additional insured on their policy, and carry your own contingent coverage in case their insurance is inadequate.

Common valet liability exposures:

• Vehicle damage from collisions, scratches, or dents caused by valet drivers
• Theft of vehicles or property from vehicles
• Customer injuries, such as slip-and-falls in the valet area
• Accidents caused by valet drivers while parking or retrieving vehicles

Why It Matters for Restaurant Owners

Valet parking is a valuable amenity that attracts upscale customers, but it creates significant insurance exposures many restaurant owners don't properly address. If a valet driver crashes a customer's $80,000 vehicle, you're potentially liable for the full repair or replacement cost, and without proper garage keepers coverage, you would pay all vehicle damage claims out of pocket.

Even when using a third-party valet company, you may still face liability because customers perceive the valet service as part of your restaurant, you selected and contracted with the valet company, and courts often find restaurants jointly liable with valet contractors. Always require certificates of insurance from valet contractors and verify coverage is in force directly with the insurance company, not just by accepting the certificate.