garagekeeper legal liability

What Is Garage Keepers Legal Liability Insurance and What Does It Cover?

Did you know that there can be accidents even in a car wash? You can end up facing personal injury claims for exterior or interior damage to customers’ cars. You may need to pay for undercarriage, wheel damage, or personal injuries. 

Are you a company that keeps customers’ vehicles and goods under your care, custody, or possession? If yes, you should consider garage keepers’ legal liability insurance. Otherwise, you can end up dealing with unforeseen circumstances like theft or damage due to extreme weather.

Rather than paying out of pocket and impacting your bottom line, you can be covered under garage keepers legal liability insurance. Keep on reading for everything you need to know about garage keepers legal liability insurance. Find out if it’s the right coverage for your business.

What Is Garage Keepers Legal Liability Insurance?

Garage keepers legal liability insurance protects those companies that keep customers’ vehicles in their care or custody. This type of insurance can cover you from everything due to collision, fire, theft, or vandalism.

Unforeseen circumstances can take place at any time. You can have the best security measures in place, but there is no guarantee that you can protect your business from extreme weather or fire. Garage keepers legal liability insurance can give you peace of mind and help you rest assured that your profit and business will be safe in these unforeseen circumstances.

On average, the cost of garage keepers liability insurance can vary depending on the size of your business, your location, and many other factors. The cost of insurance can range from $400 to $3,000 per year

Who Does Garage Keepers Legal Liability Insurance Cover?

You may think that insurance for garage keepers is limited to auto shops that do repairs, but it covers more than that. The reality is that any company that keeps customers’ vehicles in its care and custody would benefit from garage keepers legal liability insurance coverage. This can include:

  • Towing companies
  • Car repair shops
  • Car washes
  • Service stations

If you’re wondering whether your business is covered, contact an insurance provider specializing in garage keepers legal liability insurance. They can guide you through the process and ensure it’s the right option for you.

What Does Garage Keepers Legal Liability Insurance Cover?

Garage keepers liability insurance covers you if your customer’s vehicles get damaged by theft, fire, theft, vandalism, or extreme weather. You can have three different types of liability insurance coverage.

Legal Liability Coverage

You can get legal liability coverage that protects you from damage from negligence. For example, your customer’s vehicles can get damaged by employee negligence. You can also deal with property damage or personal injury claims because of equipment malfunction.

If you are an auto dealer, you may also run into issues when test driving a new vehicle. In this case, legal liability coverage will cover you for the cost of your claims and settlements.

Direct Primary

Direct Primary coverage provides coverage where there is no liability. For example, you can end up damaging your customer’s vehicle from circumstances out of your control, such as extreme weather, theft, and vandalism. This type of coverage will protect your regardless of who is at fault.

Direct Excess

Direct Excess coverage is the least common type of coverage. Like direct primary, it covers you no matter who is at fault. But it only covers you for the excess amount over the cost collectible under the owner’s liability insurance policy.

What Is Not Included?

Certain items are not covered in your liability insurance coverage. For example, garage keepers legal liability insurance may not cover stereo systems, items in the car trunk or glove compartment, and phones or radios that are not permanently attached to the car.

You may want to review the terms and conditions of your policy in detail with your liability insurance provider before making any decisions.

Difference Between Garage Liability and Garage Keepers Liability Insurance?

Remember that there is a difference between a garage liability and garage keepers legal liability insurance.

Garage liability is essential coverage to protect the business from liability. This type of coverage can protect your business from any claims of personal injury or property damage. You’ll be covered for any medical expenses, legal fees, and repairs.

For example, garage liability includes third-party claims for slips and falls at the garage. You will also be covered for any property damage to your business or third parties because of your business equipment.

On the other hand, garage keepers liability insurance protects your business from claims for damage to the vehicles under your care or custody in an accident, no matter who was at fault.

What To Look For In Your Insurance Company?

You need to look for a company with the best customer service to assist you and put your needs first. Claims can happen at any time, and you need a company that’s always available and reliable.

You also want someone with experience in the industry. They can work with you to determine the best and most affordable premiums for your business. Premiums vary based on several factors like size of business and location.

You need a company that understands your business. They should understand all the measures you have in place and use that determine the cost of insurance. Finding the right insurance provider can make all the difference in your experience.

Contact Your Garage Keepers Legal Liability Insurance Provider Today

Now you know what garage keepers legal liability insurance is!

If you keep customers’ vehicles at your shop for repairs or any other reason, garage keepers liability insurance can protect your business from unforeseen circumstances. If their vehicles get damaged, you will be covered under garage keepers legal liability insurance.

Looking to get insurance for garage keepers? You need to find the right insurance company for you with the right experience and top-quality customer service. Contact us today to request a free quote. Our team will find a plan that meets your need and budget.

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