I was polishing the rear quarter panel of a 2025 Ferrari 296 GTB, chasing a scratch. I leaned into the Rupes polisher for just a second too long, and my stomach dropped as the pad turned the color of the paint. I had burned right through the clear coat and base coat, exposing the primer. The repair quote from the authorized body shop is $12,000, and the owner is screaming.
Key Takeaways
- General Liability Fails You: Standard business insurance covers if you knock over a lamp or a customer slips on soap. It generally excludes damage to the specific part of the car you are working on.
- You Need Garage Keepers: This is the specific coverage line that protects customer vehicles while they are in your “Care, Custody, and Control.”
- “Direct Primary” is King: You want “Direct Primary” coverage, which pays out regardless of fault and doesn’t force the customer to file a claim on their own insurance first.
- The “Workmanship” Exclusion: Even with Garage Keepers, some policies exclude damage caused directly by “faulty work” (the buffing itself). You need to fight for “Broad Form” coverage.
The “Why” (The Trap): The “Care, Custody, or Control” Exclusion
Standard General Liability (GL) policies have a massive hole in them called the “Care, Custody, or Control” (CCC) exclusion.
It essentially says: “We will pay for damage you cause to third-party property, BUT NOT if that property is currently in your hands being worked on.”
Since the Ferrari was under your buffer, it was in your custody. Therefore, a standard GL policy denies the claim, leaving you to pay the $12,000 out of pocket. To fix this, you need a Garage Keepers endorsement.
The Investigation: “I Called Them”
I ran a simulation for a high-end detailer needing coverage for exotics.
1. The Standard GL Carrier (Next / Thimble)
- The Scenario: Burned paint on a customer car.
- The Response: Denied. They pointed to the “Professional Services” and “Property Worked Upon” exclusions. They cover the driveway you stand on, not the car you touch.
2. The Auto Specialist (Hagerty / Garage Insurers)
- The Scenario: Same burn through.
- The Response: Covered, provided I had Garage Keepers Liability.
- The Catch: They checked if I had “Faulty Workmanship” coverage. Without it, they might argue the burn was “poor workmanship” rather than an “accident.”
3. Direct Primary vs. Legal Liability
- The Test: I asked about “Legal Liability” Garage Keepers.
- The Result: This option only pays if I am legally negligent. While burning paint is negligence, it requires the customer to sue me or prove it. “Direct Primary” just pays the bill to keep the customer happy.
Comparison Table: Garage Keepers Options
| Coverage Type | Pays Out When? | Customer Involvement | Cost Impact |
| Legal Liability | Only if you are proven negligent (sued) | High (They must fight you) | Lowest |
| Direct Excess | After customer’s insurance pays | High (Hits their rates) | Medium |
| Direct Primary | Immediately (Regardless of fault) | Low (We leave them out of it) | Highest |
Step-by-Step Action Plan
- Stop Buffing: Do not try to “fix it” with more compound. You will make it worse.
- Call Your Agent: Ask specifically: “Do I have Garage Keepers Direct Primary coverage?” If they say no, upgrade immediately for the future.
- Document the Panel: Take high-res photos. In 2026, AI estimators can tell if the clear coat was already failing (delaminating) before you touched it. If it was, you might have a defense.
- Offer to Pay the Deductible: If you don’t have the right insurance, offer to pay the customer’s insurance deductible to keep them from suing you for the full amount.
FAQ
Q: Can I just paint the panel myself?
A: On a Ferrari? No. A repaint diminishes value (“Diminished Value Claim”). You need a certified shop to document it properly.
Q: Does my personal auto policy cover this?
A: Absolutely not. Business use is excluded, and “damage to property being transported/serviced” is excluded.
[IMAGE: Diagram showing “General Liability” covering the garage floor vs. “Garage Keepers” covering the vehicle itself.]