Garage liability insurance is a type of insurance that is specifically designed for the care sector. Garage liability insurance will be added to the business liability coverage of automobile dealerships, parking lots or parking garage operators, tow-truck operators, service stations, and customization and repair shops. The property damage and personal injury resulting from operations are covered by the policy.
This is not to be confused with garage keepers insurance.
What is Garage Liability Insurance and How Does It Work?
Garage liability insurance is a form of an umbrella policy that covers the day-to-day operations of automotive firms. The company’s general liability policy will be supplemented with this insurance. Body injuries and damage to property caused by garage activities are covered. This is something that most commercial or business liability insurance doesn’t cover.
Before you buy a policy, make sure that the garage liability coverage adds to the business owner’s regular business liability coverage and doesn’t just replace it.
Customers who are injured on the business’s property are covered up to the insurance limits. In addition, most garage insurance policies include an employee dishonesty provision for theft or vandalism committed by a customer’s car employee.
Any automobiles used in the conduct of business, like courtesy vans and parts delivery trucks, may be added for an additional cost. Damages from company-sold components or products, as well as coverage for loss caused by faulty parts put on a client’s vehicle, are examples of additional protection.
The policyholder’s tools, building, personal, or business property are not covered by garage liability insurance. It does not cover vandalism, stolen vehicles, or damage caused by natural calamities such as hail.
Accidents or damage to the customer’s car, while it is being serviced, are not covered by the policy. In addition, every basic and optional policy item will have a maximum liability coverage amount indicated, as well as aggregate limits per claim or year.
Insurance policies for commercial general liability (CGL) cover a wide variety of hazards. This insurance may include premises coverage, which safeguards the company against claims made on the premises during routine business operations. Damage to individuals or property caused by finished items may also be covered.
Garage-Keeper Insurance Isn’t The Same As Garage Liability
A separate policy called “garage-keepers insurance” covers damage to a client’s car while it is in the policyholder’s possession. Damage experienced during road tests and when the vehicle is being stored during non-working hours are examples of this.
Vandalism and theft of a customer’s car will be covered by the keeper’s insurance. Policies must be written for each location in a company with many locations.
Other Commercial Insurance Services
Businesses can also obtain coverage for various types of hazards.
Sexual harassment and discrimination claims are covered by employment practice liability insurance.
Professional liability insurance protects you from being sued for being careless if you make a mistake or don’t do your job.
In the event of a fire, storm, or theft, property insurance covers equipment, signage, inventory, and furnishings. Floods and earthquakes, on the other hand, necessitate additional coverage.
Business interruption insurance helps cover lost income when things like a long power outage stop a business from running normally.
Employers are required to carry workers’ compensation insurance to safeguard their employees and to cover the medical costs of an injured employee. It also pays lost wages and death benefits to the close relatives of a worker who has died.
Under the terms of its commercial liability insurance policy, a firm can name other companies or individuals as additional insureds. If an automobile repair garage signs a contract with another firm to perform vehicle washing services, the company may demand the garage owners add it as an additional insured on their garage liability insurance.