It’s a gorgeous day to get back to your auto repair business and to service some customers. You walk into your business garage, turn on the lights, check your emails, and double-check that everything is in order before you start your day. Just as you are about to welcome your first customer, you realize that the customer is authorized by the court to serve you lawsuit papers.
You open up the packet to find a discrimination lawsuit submitted by one of your employees. What will you do now? That is where garage liability insurance kicks in and saves the day.
Garage liability insurance is a policy that is confused by most and understood by some. If you are looking for more information on garage liability insurance and your business needs it, you came to the right spot. This article will go over garage liability insurance, where you can purchase it, and if your automotive business needs it today!
What Is Garage Liability Insurance?
Garage liability insurance is a type of insurance that most companies in the automotive industry have. Garage insurance protects your business from any property damage or bodily injury that happens due to any operation in your business.
Professionals that own parking lots, repair shops, parking garages buy this insurance. Garage liability insurance, also known as car dealership insurance, plans are umbrella insurance policies. This policy provides an extra cushion of protection in addition to your general business liability policy.
What Is Covered?
Garage insurance coverages can vary based on your business need. Not every business will have a policy similar to yours. As stated earlier, garage insurance covers any bodily injury.
If a customer were to slip and fall at your establishment, your garage insurance would pay for their medical expenses. The policy will pay up to your specified policy limit. Any property damage done as a result of any business-owned equipment is also covered.
This type of policy also protects your business from any liability claims. If you have an employee who files a discrimination lawsuit, this policy will protect your business from that lawsuit.
Depending on the type of coverage that you elect for, your policy may also cover employee dishonesty. The employee dishonesty section covers you if a disgruntled employee vandalizes vehicles at your shop.
What Is Not Covered?
Garage liability insurance plans do not cover any damages done to your physical business location. If there are any property damages done to your garage, that would be covered under commercial property insurance.
Any employee injury is not covered under this policy either. That would is a worker’s compensation claim. Garage liability also does not cover client property.
If your client brings their vehicle in for repairs or they leave it in your garage lot overnight, you are not responsible for any damages done to that vehicle. To receive coverage for those types of damages, you would need a garage keepers policy.
Garage Insurance vs. Garage Keeper
You may be wondering, “If this coverage doesn’t cover any damages to our customer’s vehicle while they are here, then what will?” The answer to that question is garage keeper insurance. A garage keeper policy will cover if your customer’s vehicle is damaged at your shop.
Damages resulting from theft, fire, vandalism, or a collision with another car are covered. For example, say that a customer enters the shop to pick up their vehicle. While they are in your establishment, their vehicle falls off the lift and hits the customer.
The damage to the vehicle is a covered peril in this situation. Another excellent example of when garage keeper insurance will kick in is during road test drives.
If one of your employees takes the vehicle out for a test drive and gets into a car accident, garage keeper insurance pays for those damages. Most insurance companies recommend that auto repair shops carry both garage insurance and garage keeper insurance.
Maintaining both policies will ensure that you have adequate coverage if something happens at the shop. If you have multiple business locations, you will need to purchase a policy for each site.
Do I Need Auto Dealers Insurance?
Auto dealer insurance, also known as garage insurance, is necessary for your business if you sell, fix, or transport automobiles. This insurance includes garage owners or parking lot owners and those who conduct emissions tests or have valet on-site. Keep in mind that this policy does not only cover cars and trucks but can also include motorcycles and trailers.
Garage Liability Insurance Costs
The cost of your policy can vary based on your business needs and how much protection you elect for. Your best insurance coverage is curated based on your on-site equipment and the types of vehicles you service.
It also is based upon the industry that your business operates and whether or not you have employees on staff working at the business site. It is always best to reach out to a reputable company that understands your business needs and who can provide you the best insurance plan for your day-to-day operations.
Get Proper Coverage Today
Now that you understand garage liability insurance, it is time to get a quote today! Garage insurance is always confused with garage keeper insurance, but they are two different types of coverages.
It is ideal to have both on file to ensure that your business is protected from any incidents. To learn more about either of the two coverages or auto dealership insurance, submit your information now to receive a free quote.