Garage Liability Insurance and Garage Keepers Insurance
They are specialized coverages designed for automotive business which work on vehicles that are owned by their customers. They protect a customer’s vehicle while it is being serviced or repaired or while it is being stored it for pick up as well as provides liability protection for the business after the customer has taken it back for work or services you performed. Garage insurance is akin to medical malpractice insurance, but is specific for automotive businesses.
What is the Difference Between Garage Liability Insurance & Garage Keepers Insurance?
Garage Liability Insurance covers damage to a customer’s car caused by the work you did or by the products you installed in the vehicle, where Garage Keepers Insurance covers the physical damage by fire, theft, vandalism or collision to the vehicle while it is being worked on or stored at your location for safekeeping and awaiting pickup by the customer.
Other Common Names for Garage Insurance
Direct Primary Insurance or Primary Insurance
Garage Keepers Insurance or Garage Keepers
Garage Keepers Legal Liability Insurance or Garage Legal Liability
Garage Liability Insurance or Garage Liability
Garage General Liability or Garage GL
Who Needs Garage Insurance?
If your business performs services, repairs or preventative maintenance on vehicles that are owned by customers whom pay for these services or have their insurance company pay for these services, then your business fits the profile of a business needing Garage Insurance. States, often have statutes or laws that state if you have a customer’s vehicle in your care, custody or control then you are legally liable for any damage caused to it and caused by it and business owners often purchase Garage Insurance to provide protection to their business and themselves as they comply with the state law.
Types of Businesses that Commonly Need Garage Insurance
General Automotive Repair Facilities or Auto Shops
Collision Repair Facilities or Body Shops
Tire Dealers or Tire Shops
Automotive Accessory Stores
Automotive Parts Stores or Auto Parts
Recycled Parts Dealers or Used Parts Dealers or Auto Salvage Yards
Transmission Shops or Tyranny Shops
Tow Companies or Tow Trucks
Franchised Auto Dealers or Car & Truck Dealerships
Independent Auto Dealers or Used Car Dealerships
Garage Keepers Coverage Example
Criminals break into your garage and vandalize several customer cars as they steal air bags and stereo systems. Garage Keepers Insurance would pay to repair the damage caused to the customer’s car, up to the limit you select.
Garage Liability Coverage Example
You change the oil in a late model vehicle and the technician accidently puts the wrong oil filter on the vehicle which works for a few days then it leaks oil out of the engine and caused major engine damage. Garage Liability Insurance would cover the necessary repairs necessary to repair the customer’s engine and possibly provide a temporary replacement vehicle during the repairs.
Other Common Insurance Coverage’s in a Garage Insurance Program
Garage Liability Insurance and Garage Keepers Insurance are two coverage’s that are common in Garage Insurance Programs other common possible coverage’s needed in Garage Insurance Programs include:
Business Personal Property Coverage
Loss of Business Income
Employment Practices Coverage
Completed Operations Coverage
Show Owned Vehicle Coverage
Loaner Vehicle Coverage
Repair Plate or Test Drive Plate Coverage
Business needs and suitability vary greatly, so as you explore the coverage’s needed by your business it is important to work with a professional that has a background in working with automotive businesses and background in providing Garage Insurance. A Good Glossary of Insurance Terms, which includes explanations of coverage’s can be found on the International Risk Management Institute’s (IRMI)website.
Special Insurance Coverage’s in a Garage Insurance Program
Towing Insurance or On Hook Coverage
Auto Dealership Coverages
Loaner Car Coverages
Recycled Auto Parts Sales or Used Auto Parts Sales
Business needs and suitability vary greatly, so as you explore special coverages needed by your business it will be important to work with a professional experienced with working with Garage Businesses. A Good Glossary of Insurance Terms, which includes explanations of coverage’s can be found on the International Risk Management Institute’s (IRMI)website.