Garage Liability Insurance
If your business handles vehicles for customers onsite, then buying garage liability coverage is vital protection you cannot do without. Repair shops, service stations, tow truck drivers, and dealerships are all businesses that require this type of coverage. Having it provides you with complete peace of mind that any vehicles belonging to customers have adequate protection should something happen to them while they are in your care.
At Paradiso Insurance, our commercial insurance team can help you buy the best garage liability insurance policy for your individual needs.
What is Garage Liability Insurance?
A garage liability policy is specifically designed to meet the needs of those working in the automotive industry. It can be added to business liability coverage to provide targeted coverage that protects bodily injury and property damage that arises from operations. Garage liability coverage is not the same as garage keepers’ coverage; we will explain the differences between the two in the next section.
Garage Liability Insurance vs. Garage-Keepers Insurance
Garage keeper’s insurance and garage liability coverage are not the same.
A garage liability insurance policy will cover property damage or bodily injury that is caused by an incident occurring outside of typical garage operations. The coverage refers to maintenance, ownership, or use of locations for garage business operations. Essentially, garage liability insurance is designed to help businesses cover all autos on their premises.
A garage-keeper insurance policy is designed to cover property damage to a customer’s vehicle while it is in the care of the policyholder. This includes damage caused while on test drives, while the vehicle is stored outside of business hours, and provides coverage for theft, fire, and vandalism. For a multi-location business, a new policy will be needed for each location.
How Garage Liability Insurance Works?
Garage Liability insurance works in a similar way to an umbrella policy that provides insurance for the day-to-day operations of an auto-related business. This gives an extra level of coverage to a general liability policy that includes bodily injury and property damages that are caused by the direct operations of a garage that is not otherwise covered under a business or commercial liability insurance policy.
Garage liability insurance will include injuries to customers while they are on the business premises up to predetermined limits of a policy. Most insurers that sell garage liability insurance will also offer the option to upgrade the coverage to provide extra protection for autos used to conduct business, such as courtesy cars and delivery vehicles.
What is not covered by Garage Liability coverage?
Garage liability insurance will not provide coverage for the building, tools, personal, or business property of the policyholder. Most insurers will not provide coverage for personal effects left in vehicles. There will also be a maximum liability coverage limit placed on the policy, which may have aggregated limits per year or per claim.
What Type of Businesses Need Garage Liability Insurance
If you are responsible for other people’s vehicles that are left in your care or on your property, then you’ll need to buy garage liability insurance.
- Auto Body Shops
- Repair Shops
- Towing Services
- Service Stations
- Oil Change shops
- Customization shops
- Electronic Repair shops
- Auto Glass Companies
- Parking Garages
- Car Dealerships
- Interior Restoration Dealers
- Muffler Shops
How Much Does Garage Liability Insurance Cost?
The cost of s garage liability insurance will vary depending on several key factors. While each insurer offers slightly different terms from one to the next, the five key factors that can determine the cost of coverage include:
- The level of coverage
- The annual revenue for the business
- The policy deductible
- The coverage options and limits
- The claims history for the business
Other factors will be considered, and if a business looks after high-value vehicles on a regular basis, this could impact the cost of a garage liability policy.
If your business needs to get a quote for garage liability insurance, the team at Paradiso Insurance provides a first-class service backed by competitive prices and a friendly team of commercial auto insurance experts.
Call us today to get a free quote from some of the leading providers of garage liability insurance.