When seeking auto repair shop insurance, it is important to know what kind of insurance coverage that you need. There are two main types of insurance that are unique to auto repair shops and garages: garage liability insurance and garagekeepers coverage. Despite the similar names, garage liability differs from garagekeepers coverage.
Garage liability insurance is a type of policy which provides coverage for everyday business operations in the automotive industry. Garagekeepers insurance is a policy that covers property damage to a client’s car while it is in the care of the policyholder, such as during road test drives or while the vehicle is stored during non-working hours. Garagekeepers insurance covers vandalism and theft of a customer’s car. For adequate auto repair shop insurance, shop owners must have both policies.
Garage Liability Insurance, Explained
Garage liability insurance coverage includes bodily injury and property damage from direct garage operations, not covered under standard commercial or business liability insurance. One example of when this coverage applies would be if a customer slips and falls while walking through the repair bay to speak with a mechanic. Garage liability would then pay for medical expenses up to the policy’s specified limit. The garage liability coverage will add to, and not merely replace, basic business liability coverage. There is also an employee dishonesty provision of the policy that comes into effect if an employee steals or vandalizes a customer’s car.
Coverage will include injuries to customers while on the business grounds up to the chosen limits of the policy. Garage liability insurance will not cover the expenses from vandalism, stolen vehicles, or weather damage, which is why garagekeepers insurance will also be needed for full, well-rounded auto repair shop insurance.
Garagekeepers Insurance, Explained
Garagekeepers liability insurance covers your financial responsibility for damages from loss to a customer’s vehicle (or its equipment) left in your care while you are servicing, repairing, parking or storing it in your garage operations. Those in the business of selling, servicing, repairing, parking or storing customer’s autos should consider the importance of having garagekeepers in their auto repair shop insurance plan.
Garagekeepers insurance offers three options:
- Legal Liability: Applies to a customer’s vehicle damage due to the insured’s negligence.
- Direct Primary: Covers the customer’s vehicles regardless of who is at fault. In a loss caused by no action of the insured, such as the result of poor weather conditions, or a theft although the vehicle was adequately protected, the direct primary Garagekeeper’s pays.
- Direct Excess: Fault does not apply, yet it only covers the excess cost collectible under the owner’s policy.
About Bozzuto & Co. Insurance Services, Inc.
Bozzuto & Company Insurance Services has provided business and personal insurance solutions to clients throughout California since its founding in 1981. Our experienced staff understands the unique needs that each person has when insuring their lives and their businesses, and we pride ourselves on our deeply personal customer service. We are happy to help you through every step of the insurance selection process. Contact us today at (800) 400-6394 to learn more about what we can do for you.