Parking Lot Insurance Cost

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Public parking lots provide a critical service for folks who are out and about. Rather than endlessly circling the block looking for street parking, most people decide to take the safer and simpler method of pulling into a parking lot and paying. Despite the cost, it’s infinitely simpler and less stressful. And it creates a business opportunity in many areas.

Because of these conveniences, owning a parking lot in highly trafficked areas can be a very good business. But with people and vehicles moving all over your space, your employees moving cars, and keeping valuable property in your possession, the liability risks from accidents, damage, and injuries are high. The best way to protect yourself is by purchasing comprehensive parking lot insurance coverage.

This guide will provide you with all the information you need about parking lot insurance cost to make an informed decision about your policy.

We Cover in This Guide

  • How much does parking lot insurance cost?

  • What is parking lot insurance?

  • What does parking lot insurance cover/not cover?

  • How to minimize parking lot losses?

  • Types of insurance you may need

  • Tips for buying

  • FAQ

  • Summary

How Much Does Parking Lot Insurance Cost?

Parking lot insurance cost ranges from $39 to $89 per month depending on your provider, coverage, location, and risks. Premium rates for typical policies are as follows:

  • Basic (Essential coverage to meet client demands): $39 per month for general liability
  • Standard (When you also have equipment or operate from a garage): $49 per month for general liability + property; bundle them with a business owners policy (BOP)
  • Pro (Get protected against employment-related issues): $89 per month for business owners policy + garage keepers liability

If your business has specialized needs, most providers allow you to add additional coverage to customize your policy.

What Is Parking Lot Insurance?

Parking lots can be extremely profitable since overhead is pretty low and the flow of cars is pretty consistent. But all that can go away if something disastrous happens on your property. From vehicle damage or theft to customer injury, the risks are various and potentially costly. Whether you are directly responsible or not, if the incident occurs on your lot, you can be sued and potentially held liable for damages. Parking lot insurance provides protection from these scenarios by covering legal costs and paying potential damages; it is essential for anyone owning or operating a parking lot.

What Does Parking Lot Insurance Cover/Not Cover?

Parking lot owners face a wide variety of risks during normal operations. With all the vehicles moving around in a limited amount of space, and with clients unfamiliar with the route, there is a decent likelihood of an accident. You also have people walking to and from their cars who may not be paying attention to obstacles or vehicles; this could lead to injuries. And finally, no matter how much security you have in place, bad actors may break into a car or even steal it. Most parking lot insurance policies cover these scenarios and others that fall into the following categories:

  • Third-party bodily injury

  • Third-party property damage

  • Personal injury

  • Business personal property

  • Products/completed operations

  • Lost business income

  • Equipment breakdown

  • Theft and damage to customers’ vehicles

Certain risks may not be covered under typical policies and require additional insurance. They can include:

  • Medical expenses for employees’ injuries and illness

  • Employee negligence

  • Employee theft

  • Customer property inside vehicle

You can often get protection from these potential claims by adding additional coverage to your policy.

How To Minimize Parking Lot Losses?

Minimizing losses comes down to taking steps to prevent crime and keep your customers and their vehicles safe. This includes security measures as well as property maintenance. The following are some suggestions to mitigate your risks and prevent potential liabilities:

  • Install and maintain proper lighting.

  • Regularly inspect the lot for dangers and install signs to warn customers.

  • Make sure there is adequate walking space, and clear walkways of obstructions like snow and ice, and trash and debris.

  • Properly pave the lot and fill in potholes.

  • Make sure drains are clear to prevent water buildup.

  • Train employees for injury and damage scenarios.

  • Clearly mark parking spaces, entries, exits, and stairways.

  • Surround your lot with a fence to ensure you can monitor everyone entering and exiting.

Types Of Insurance You May Need

  • Business Owners Policy (BOP): A combination of several coverages for small businesses. Typically includes liability, property, and business interruption coverage. 

  • General Liability: Protects your lot from claims like property damage, third-party injury, and advertising mistakes.

  • Workers’ Compensation: Provides coverage for medical care and lost wages to employees who are injured or get sick while on the job. The employee then cannot sue you for negligence. 

  • Employment Practices and Liability Insurance (EPLI): Covers your business from discrimination, wrongful termination, breach of contract, failure to employ or promote, sexual harassment, employer negligence, mismanagement, and many other claims.

  • Crime Liability: Covers damage and replacement costs from certain covered crimes.

  • Garagekeepers Liability: Protects your lot against lawsuits from damage to vehicles while under your care. Includes accidents, fire, theft, vandalism, and other covered factors within and outside of your control.

Tips For Buying

When considering parking lot insurance cost, keep the following in mind before making your decision:

  • Bundle policies: Providers will often provide discounted rates when you combine certain key coverages like a BOP with liability and property. 

  • Identify your risks: Be sure to thoroughly analyze your business to identify potential risks. After that, choose the proper limits and include all the applicable coverages.

  • Compare quotes: Policy premiums vary between insurers. Consider at least three quotes to find the best rates and coverage.

  • Work with an independent agent: An independent insurance agent will help direct you toward providers with the best rates and those that have the most experience with parking lots 


What does bailment mean for a parking lot?

Bailment is the legal process of the car owner (bailor) transferring possession of their vehicle to you as the parking lot owner (bailee). Once that occurs, the bailee is generally responsible for loss and damages.

What is garage liability insurance?

It covers theft, property damage, and physical injury on your property, but does not include customer cars; only business-owned vehicles are included.

How can I protect myself against employee misdeeds?

Most providers offer employee theft and crime coverage to protect your business against potential liabilities from employee theft, fraud, negligence, and vandalism.


Parking lot insurance protects you against financial ruin if something catastrophic happens on your property. Legal costs and damages could completely wipe out your assets and destroy your business.

By understanding parking lot insurance costs, assessing your risks, and determining your needs, you can know that your policy covers as many potential risks as possible and feel secure that your business is safe.

All Types of Insurance You May Need

General liability Workers' Compensation
Commercial Auto Inland Marine
Typical cost is


Parking lot insurance premiums range from $39 to $89 per month depending on your provider, coverage, location, and risks.

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