Garage Liability Insurance: What it is, How it Works

Garage liability insurance is a type of insurance designed specifically for the car sector. Garage liability insurance will be added to the business liability coverage of automobile dealerships, parking lot or parking garage operators, tow-truck operators, service stations, and customisation and repair shops. The policy covers property damage and personal injuries caused by surgeries.

This is not the same thing as garage-keepers insurance.

How Garage Liability Insurance Works

Garage liability insurance is a form of umbrella policy that offers coverage for the day-to-day operations of automotive firms. This insurance will supplement the general liability policy of the company. Coverage includes personal injury and property damage caused by direct garage activities, which are not often covered by commercial or business liability insurance. 

Before purchasing a policy, the business owner should ensure that the garage liability coverage supplements, rather than simply replaces, their normal business liability coverage.

Up to the policy's chosen limits, coverage will encompass injuries to customers while on business grounds. Furthermore, most garage insurance policies include an employee dishonesty provision for theft or vandalism committed by an employee of a customer's vehicle. Any automobiles utilized in the course of work, like courtesy vans and parts delivery trucks, may be added for an additional cost. Damages from components or products sold by the company, as well as coverage for loss from faulty parts placed on a client's vehicle, can be included as additional safeguards. 

Garage liability insurance does not cover the policyholder's tools, building, personal, or company property. It does not cover vandalism, stolen vehicles, or damage caused by disasters such as hail. The policy does not cover accidents or damage to the customer's vehicles while they are being serviced. Furthermore, all basic and supplementary policy items will have a listed maximum liability coverage amount and may have aggregate limits by claim or year. 

The amounts of coverage in commercial general liability (CGL) insurance policies vary. This insurance may include premises coverage, which protects the company from claims made on the premises during normal business activities. It may also include covering for bodily harm and property damage caused by finished goods.

Garage Liability Is Not Garage-Keeper Coverage

Garage-keepers insurance is a separate policy that covers property damage to a client's vehicle while it is in the policyholder's care. This includes damage sustained during road test drives and when the vehicle is stored during non-working hours. Vandalism and theft of a customer's car are covered by the keeper's insurance. Businesses with several locations must have rules in place for each location. 

Other Business Insurance Products

Businesses can also acquire coverage for various business hazards.

• Sexual harassment and discrimination claims are covered by employment practices liability insurance.
• Professional liability insurance protects against negligence lawsuits resulting from errors or failure to perform. 
• In the event of a fire, storm, or theft, property insurance protects equipment, signage, inventory, and furnishings. Additional coverage, however, is required to cover emergencies such as floods or earthquakes. 
• Business interruption insurance reimburses for lost income caused by events that disrupt typical business operations, such as a prolonged power outage.
• Employers must have workers' compensation insurance to safeguard their employees and cover the medical expenses of injured workers. It also compensates the immediate relatives of a deceased worker for lost pay and death benefits.
• Under its commercial liability insurance policy, a firm may list other companies or individuals as extra insured. For example, if an auto repair shop signs a contract with another company to provide vehicle washing services, the other company may need the garage owners to include it as an additional insured on their garage liability coverage.