What Insurance a Valet Parking Company Must Carry (And Why Restaurants Should Care)
When restaurants think about valet parking risk, they often focus on pricing or staffing. But the single biggest factor that determines whether a valet incident becomes a minor inconvenience—or a major legal and financial problem—is insurance.
Not all valet insurance is the same. And many restaurants don’t realize that hiring a valet company without the right coverage can expose the restaurant itself to lawsuits, uncovered claims, and insurance disputes.
This guide explains what insurance a valet parking company must carry, why it matters, and how restaurants can protect themselves by asking the right questions.
Why Valet Insurance Matters More Than You Think
Valet parking sits at the intersection of multiple risk categories:
Employees driving customer vehicles
High-value personal property
Public interaction in busy traffic areas
Nighttime and high-volume conditions
Because of that, standard business insurance is not enough. Valet parking requires specialized coverage, and when that coverage is missing—or inadequate—the restaurant can be pulled into the fallout.
Insurance carriers and attorneys will often ask:
“Did the restaurant ensure the valet company was properly insured?”
If the answer is no, liability exposure increases dramatically.
1. Garage Keepers Liability Insurance (Non-Negotiable)
Garage keepers liability is the most critical insurance policy a valet company must carry.
This coverage applies specifically to customer vehicles while they are in the care, custody, or control of the valet operator. That includes:
Scratches and dents
Collision damage
Theft
Vandalism
Without garage keepers coverage, damage to a guest’s vehicle may not be covered at all—or may fall back on the restaurant.
What Restaurants Should Look For
Adequate limits (low limits are a red flag)
Coverage applies to valet operations (not just “parking”)
Active policy dates
Reputable carrier
If a valet company cannot produce proof of garage keepers insurance, that should be a deal-breaker.
2. Workers’ Compensation Insurance
Workers’ compensation covers valet attendants if they are injured on the job. This matters to restaurants more than many realize.
If a valet company does not carry workers’ compensation:
An injured attendant may attempt to sue the restaurant
The restaurant’s own insurance may be dragged into the claim
Regulatory penalties may apply
Restaurants that knowingly hire uninsured labor—even indirectly—can face serious exposure.
Red Flag Warning
If a valet rate is extremely low, workers’ compensation is often one of the first corners cut.
3. Commercial Auto Insurance (When Applicable)
Some valet companies operate company-owned vehicles for:
Shuttle services
Off-site parking lots
Vehicle repositioning
In these cases, commercial auto insurance is required.
Even if the valet company claims they “don’t need it,” restaurants should verify:
Whether any company vehicles are used
Whether attendants ever transport vehicles beyond immediate proximity
Whether coverage aligns with actual operations
Misaligned coverage is a common reason claims get denied.
4. General Liability Insurance
General liability insurance covers non-vehicle-related incidents, such as:
Slip-and-fall accidents
Property damage unrelated to vehicles
Guest injuries near the valet stand
While this coverage is common, restaurants should still confirm:
Sufficient policy limits
That valet operations are not excluded
That the policy is active and current
General liability alone is not sufficient for valet operations—but it is still necessary.
5. Additional Insured vs. Certificate Holder (Critical Distinction)
Many restaurants believe they are protected simply because they are listed on a certificate of insurance. That’s not always true.
Certificate Holder: You receive proof the policy exists
Additional Insured: You receive certain protections under the policy
Whenever possible, restaurants should request to be listed as an additional insured. This can provide stronger protection if a claim arises involving both parties.
Common Insurance Red Flags Restaurants Miss
Restaurants often unknowingly accept risky situations, including:
Expired insurance certificates
Policies with exclusions for valet operations
Extremely low coverage limits
Certificates that don’t match the services being performed
“We’re covered under someone else’s policy” explanations
These issues frequently surface after a claim—when it’s too late to fix.
How Insurance Gaps Create Restaurant Liability
When a valet incident occurs and insurance coverage is missing or denied, the focus shifts to:
Who hired the valet company
Who benefited from the service
Whether reasonable diligence was exercised
At that point, restaurants may face:
Direct lawsuits from guests
Cross-claims from valet companies
Insurance disputes with their own carriers
Increased premiums or dropped coverage
What could have been a routine claim can escalate into a major problem.
How MB&L Parking Protects Restaurants
At MB&L Parking, insurance is not an afterthought—it’s foundational to how we operate.
Our valet services are structured around:
Proper garage keepers coverage
Workers’ compensation compliance
Appropriate liability limits
Transparent documentation
Defensible vendor selection for restaurant partners
We price our services to reflect the real cost of operating safely and legally—because cutting corners puts everyone at risk.
Final Thought: Insurance Is Risk Management, Not Paperwork
For restaurants, valet insurance isn’t just about checking a box. It’s about protecting:
Your guests
Your reputation
Your insurance standing
Your bottom line
Asking the right insurance questions upfront is one of the simplest ways to avoid costly surprises later.
Call to Action
If you currently offer valet parking—or are evaluating a new provider—MB&L Parking can help you reduce risk.
Request a professional valet quote and work with a provider that understands compliance, insurance, and guest protection.
📞 201-414-1255
📧 info@mblparking.com
🌐 mblparking.com