Garage Liability Insurance
Garage liability refers to insurance covering acts for which the business owner is found to be legal liable for claims of bodily injury and property damage arising out of their business operations. Often this is the resulting damage for the Work Performed by a Garage Business, such as leaving oil out of an engine and the resulting damage would be a seized engine. It can also include the premises where an customer is insured slipping on an oily surface or if the business was named in a lawsuit to do their business operations.
Difference Between Garage Liability and Garagekeepers
Garage Liability is often confused with Garage Keepers Coverage, but they are distinct coverages.
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.
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 accidentally 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.
Garage Keepers is really an “inventory” coverage in covers the inventory of customer vehicles kept for safekeeping during the repair process while Garage Liability refers to the garage operations involving the ownership, maintenance, or use of autos and the other dealing with all other garage operations.
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.