Garagekeepers Legal Liability Insurance for Automobile Dealerships

As an automobile dealership, you are in the business of selling and servicing vehicles. This means that your customers entrust their vehicles to you on a regular basis. While you strive to provide the best possible service, accidents can still happen. To protect your dealership from potential financial losses, it is important to have garagekeepers legal liability insurance in place.

What is Garagekeepers Legal Liability Insurance?

Garagekeepers legal liability insurance is a type of insurance coverage designed for businesses that provide vehicle storage and maintenance services. This coverage provides protection for the costs associated with repairing or replacing a customer’s vehicle that is damaged while in your care, custody, or control. This type of insurance is also commonly referred to as “garage liability insurance” or “garagekeepers insurance.”

Why Do Automobile Dealerships Need Garagekeepers Legal Liability Insurance?

Automobile dealerships need garagekeepers legal liability insurance to protect against the potential costs associated with repairing or replacing a customer’s vehicle that is damaged while in their care. This can include damages that occur while a vehicle is being serviced, stored, or transported. The cost of repairing or replacing a damaged vehicle can be significant, and without insurance, these expenses would come out of the dealership’s pocket.

Additionally, garagekeepers legal liability insurance can provide protection against legal expenses if a customer decides to take legal action against the dealership. This type of insurance can help cover the costs of defending a lawsuit, as well as any settlements or awards that may be required.

What Does Garagekeepers Legal Liability Insurance Cover?

Garagekeepers legal liability insurance covers the costs associated with repairing or replacing a customer’s vehicle that is damaged while in the care, custody, or control of the dealership. This can include damages that occur during routine service or maintenance, as well as damages that occur while a vehicle is being stored or transported.

In addition to covering the cost of repairing or replacing a damaged vehicle, garagekeepers legal liability insurance can also provide coverage for legal expenses if a customer decides to take legal action against the dealership. This can include the cost of defending a lawsuit, as well as any settlements or awards that may be required.

How Does Garagekeepers Legal Liability Insurance Work?

Garagekeepers legal liability insurance works by providing coverage for the costs associated with repairing or replacing a customer’s vehicle that is damaged while in the care, custody, or control of the dealership. If a customer’s vehicle is damaged while in the dealership’s care, the customer will make a claim with the insurance company. The insurance company will then investigate the claim and determine the appropriate course of action.

If the insurance company determines that the damage was covered under the dealership’s garagekeepers legal liability insurance policy, they will pay for the cost of repairing or replacing the vehicle. If the insurance company determines that the damage was not covered under the policy, the dealership will be responsible for covering the cost of repairing or replacing the vehicle.

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