Garage Insurance
If you’ve ever felt confused about the terms “garage liability” and “garage keepers,” you’re not alone. Many clients, agents, and customer service representatives find these terms tricky.
To simplify, imagine a customer brings their vehicle back to your lot for a mechanical issue. Your mechanic takes it for a test drive, accidentally hits another vehicle, injures the driver, and damages the customer’s car. Here's how coverage applies:
- Garage Liability: Covers the other driver’s vehicle and injuries.
- Garage Keepers: Covers damage to the customer’s car.
What is Garage Liability?
Garage liability combines aspects of a business auto policy and a commercial general liability policy. It covers bodily injury or property damage resulting from “garage operations,” including the use and maintenance of vehicles and business premises.
However, it excludes damage to customer vehicles in your care, custody, or control, such as during repairs or test drives. That’s where garage keepers coverage comes in.
What is Garage Keepers Coverage?
This optional coverage protects your business against losses to customers’ vehicles left in your care for services like repair, parking, or storage. There are three types:
- Legal Liability: Covers damages due to negligence, such as a test-drive accident or an unsecured vehicle theft.
- Direct Primary: Pays for losses regardless of fault, like weather damage or theft.
- Direct Excess: Similar to direct primary, but only covers amounts exceeding other insurance coverage when there’s no fault.
Why It Matters
Garage liability and garage keepers coverage work together to protect your business from different risks. Understanding these options can help you avoid costly gaps in coverage.
Have questions or need guidance? Give us a call today. We’ll help you navigate your options and choose the right coverage for your business.
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