Businesses that Handle Customers' Vehicles Need Specialized Insurance Coverage!
These businesses include auto repair shops, auto body shops, muffler shops, radiator shops, transmission shops, car stereo shops, car, truck, motorcycle and RV dealerships, tire dealers, tow truck drivers and service stations.
The more common forms of business insurance, such as general liability insurance and commercial auto insurance, will not cover all the unique conditions and risks faced by businesses that are based on the sale and repair of vehicles. For example, a standard commercial general liability policy usually does not cover damage to vehicles not belonging
to the insured business. A commercial auto insurance policy usually does not cover damage to vehicles not belonging to the insured business when operated by employees of the business.
Garage Liability Insurance, along with Garage-Keeper's Insurance, Fills in these Coverage Gaps!
Any business that handles customers' vehicles needs Garage Liability insurance and possibly Garage-Keeper's insurance. Garage Liability insurance and Garage-Keeper's insurance often work in addition to, or in tandem with, a business' commercial general liability and commercial auto insurance policies to make sure all the coverage gaps are filled.
What Does Garage Liability Insurance Cover?
• A basic garage liability insurance policy covers injuries suffered at the shop by non-employees.
The most common incident is a slip and fall by a customer in the shop.
(Employees are covered under Workers Compensation Insurance)
• A basic garage liability insurance policy will also cover if a shop employee steals or vandalizes a customer's vehicle.
• Garage liability insurance also covers products manufactured or sold by the shop including damage to the customer's vehicle resulting from faulty installed parts.
• Most garage liability policies will also include coverage for liabilities arising from the shop's general business operations, such as discrimination lawsuits from employees.
• Garage liability insurance can cover injuries to the occupants of another vehicle and damage to the other vehicle caused by an employee driving a customer's vehicle such as on a test-drive.
However, it will not cover damage to the customer's vehicle in an accident. For property damage coverage of the customer's vehicle, you need Garage-Keeper's Insurance!
What Does Garage-Keeper's Insurance Cover?
With Garage-Keeper's insurance, customer vehicles that are damaged while under repair, being stored at the shop or driven on or off the premises by an employee are covered.
Garage-Keeper's insurance picks up where Garage Liability insurance leaves off. Garage-Keeper's insurance covers property damage to vehicles while in "care, custody or control" of the insured business which is not covered in a standard Garage Liability policy. As every auto shop or car lot owner knows, there are many ways a customer's vehicle can be damaged from simply moving the vehicle in and out of a work bay to worst case scenarios such as an accident on a test drive or a fire at the shop.
While Garage Liability and Commercial Auto insurance cover a customer injured on the premises or someone injured by an employee while driving a customer's vehicle, Garage-Keeper's insurance covers property damage to the customer's vehicle.
Don't Forget Your Commercial Auto Insurance!
If the business' employees drive company vehicles off the premises, you will also need auto insurance coverage. This may be included in the Garage Liability insurance coverage but may require an additional endorsement and premium.
Alliance Can Make Choosing the Right Coverage Easy!
Whether you operate a repair shop, a dealership or a tow truck, the business insurance specialists at Alliance Insurance Agency Services can put together an insurance plan for your business from a wide range of commercial insurance products including:
Garage Liability Insurance
On-Hook Towing Insurance
Commercial Auto Insurance - See More
General Liability Insurance - See More
Business Owner's Package Insurance - See More
We'll make the process easy, the cost affordable, and the coverage just right for your business!