Garage liability insurance is specialty insurance targeted to provide coverage for the day-to-day operations of the businesses in the automotive industry.
Garage Liability Insurance covers the legal liability of franchised and non-franchised automobile, truck, truck-tractor, trailer, recreational vehicle, and motorcycle dealers for claims of bodily injury (BI) and property damage (PD) arising out of normal business operations. These provisions are not covered under most commercial or business liability insurance.
The business owner should verify that the garage liability coverage will add to, and not merely replace, their basic business liability coverage.
It includes two separate insuring agreements, “who is an insured” provisions, and “limit of insurance” provisions—one dealing with garage operations involving the ownership, maintenance, or use of autos and the other dealing with all other garage operations.
Businesses who should have Garage Liability Insurance include:
- Automobile dealerships
- Parking lots or parking garages operators
- Tow-truck operators
- Service stations
- Customization and repair shops
Your automotive business is not only trusted to protect and possibly fix your customers’ vehicles, but also to keep the property safe while it’s in their control, including transport.
But accidents can happen anywhere. And for that, garage liability insurance, together with garage keeper’s insurance, are needed to help protect your customers’ property — and especially your business.
This includes injuries to customers while on the business grounds up to the chosen limits of the policy.
Also, most garage insurance will include an employee dishonesty provision for theft or vandalism done by an employee of a customer’s car.
For an added premium, any autos used in the conducting of business, such as courtesy vans and parts delivery trucks, may be added. Additional protections can include damages from parts or products sold by the company and coverage for loss from faulty parts installed on a client’s vehicle.
However, garage liability insurance policies will not cover the tools, building, personal or business property of the policyholder. It also does not provide coverage for vandalism, stolen vehicles, or damage from events such as hail.
In addition, the policy does not cover accidents or damage to the customer’s cars on site for service. Also, all policy basic and additional items will have a listed maximum liability coverage amount and may have limits by claim or by year.
When a customer of client decides to get a lawyer involved in a dispute, it quickly becomes expensive. Even if you have done absolutely nothing wrong, you will have to get your own lawyer to protect yourself and your business. You will quickly be looking at least a few thousand dollars in costs. If litigation drags on, those costs add up quickly.
How Do I Get Garage Liability Insurance for My Business?
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