What Is Garage Liability Insurance?

Jul 2, 2023 | Business Insurance, Personal Insurance

Garage liability insurance is a type of insurance designed specifically for the automotive industry. 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 customization and repair shops. The policy covers property damage and bodily injury caused by operations. This is not the same thing as garage-keepers insurance. Garage Liability Insurance — insurance that protects franchised and non-franchised automobile, truck, truck-tractor, motorcycle, recreational vehicle, and trailer dealers from bodily injury (BI) and property damage (PD) claims arising from business operations. It contains two separate insuring agreements, “who is an insured” provisions, and “limit of insurance” provisions—one for garage operations involving the ownership, maintenance, or use of automobiles, and the other for all other garage operations.

How far would you go to protect your business, employees and everything you’ve worked hard for? Liability insurance can help ensure you’re protected against accidents and unexpected eventualities. Get a Quote

How Garage Liability Insurance Works?

Garage liability insurance is a type of umbrella policy that provides coverage for the day-to-day operations of automotive businesses. This insurance will supplement the general liability policy of the company. Coverage includes bodily injury and property damage caused by direct garage operations, which are not typically covered by commercial or business liability insurance.

Business auto insurance is very important. It protects your whole fleet of vehicles and your employees. Don’t let accidents ruin your business! Start a Quote Here!

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

Up to the policy’s chosen limits, coverage will include 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 autos used in the course of business, such as courtesy vans and parts delivery trucks, may be added for an additional premium. Damages from parts or products sold by the company, as well as coverage for loss from faulty parts installed on a client’s vehicle, can be added as additional safeguards.

Garage liability insurance does not cover the policyholder’s tools, building, personal, or business property. It does not cover vandalism, stolen vehicles, or damage caused by events 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 additional policy items will have a listed maximum liability coverage amount and may have aggregate limits by claim or year.

Protect your business, your employees and everything you’ve worked hard for with Business Insurance. Get a quote here or speak to one of our Business Insurance Experts at (877) 658-2472 today!

The levels 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 operations. It may also include coverage for bodily harm and property damage caused by finished goods.

Your best business moments happen when everything is in place. Let Advantage Insurance Solutions find the right coverage you need for your business at the best value. Get a Quote

What types of businesses require garage liability insurance?

Garage liability insurance is required for any business that maintains, repairs, sells, or stores vehicles in a public area. Among these companies are:

Automobile dealerships

Automobile repair and body shops

Shops for oil changes, mufflers, and tires

Towing services

Parking lots and impound lots

Garage owners and businesses that store vehicles

It’s a jungle out there, and I’m not talking about the actual jungles. All sorts of things can go wrong, from fires to injuries to equipment failure from implementing a wrong vendor choice. Get the protection you need for your business and employees with Advantage Insurance Solutions. Get a Quote

What kind of protection does garage liability insurance provide for automotive businesses?

Garage liability insurance protects against a variety of risks associated with automotive business operations, such as:

Injuries to customers

If a customer or visitor is injured in your garage or auto shop, garage insurance will cover their medical expenses.

Damage to customer property

If a customer’s or visitor’s property is damaged in an accident on your property, this policy will cover the cost of repair or replacement. Customers’ vehicles, however, are not included.

With all of these advantages, protecting your employees and vehicles is critical with Commercial Auto Insurance. Get a quote today

Legal fees

If a customer sues your company because of an accident that resulted in bodily harm or property damage, this policy will help cover the costs of your legal defense. Settlements and court-ordered judgments are also covered.

Repair flaws

Most garage policies include products-completed operations coverage. This coverage assists in the payment of expenses if a customer is injured or suffers other damages as a result of a defective part, faulty repair, or other liability claim related to your services or parts.

The road to your business goals can be riddled with potholes like product recalls and injuries sustained during athletics. Come insurance for small businesses. Advantage Insurance Solutions can get you covered. Get a Quote

What is not covered by garage liability insurance?

Garage insurance does not cover your commercial property, such as the building, tools, and equipment. Commercial property insurance, which is included in a business owner’s policy, covers these (BOP).

Other common risks that garage liability insurance does not cover include:

Customer vehicle damage or theft is covered by garage keepers liability insurance.

Damage to your own commercial vehicles, which is covered by commercial auto insurance

Employee injuries are covered by workers’ compensation insurance (required in most states)

Running a business isn’t easy, especially when you have to think of the little details. That’s why companies need Commercial Auto Insurance. Get a Quote

What is the distinction between garage keepers and garage insurance?

Although both are frequently purchased by businesses that store, repair, or maintain vehicles, garage keepers insurance is not the same as garage liability insurance.

Garage keepers liability insurance, also known as storage location insurance, protects your business while a customer’s vehicle is in your care, custody, or control. It safeguards against fire, vandalism, accidental damage, and theft. This includes damage caused while transporting or testing a customer’s vehicle.

For example, if a mechanic scrapes a cinderblock while moving a customer’s car for an oil change, the accidental damage to the car’s bumper would be covered by a garage keepers policy.

If you fail to plan, you’re planning to fail. Get a Business Insurance Quote today. Start Here

How do I obtain liability insurance for my garage?

By completing Insureon’s simple online application, you can compare quotes for general liability insurance and other policies from top-rated providers. Speak with an agent about your garage insurance options.

If you are unsure about which type of insurance your small business requires, you can speak with a licensed agent about policies such as business owner’s policies, commercial auto insurance, and workers’ compensation. You can begin coverage in less than 24 hours after selecting a policy.

Need coverage for your fleet? Advantage Insurance Solutions has your back. We shop competitive commercial auto insurance quotes for you. Get a Quote

Garage Liability Does Not Exist Coverage for Garage Keepers

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 while 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 multiple locations must have policies in place for each location.

Don’t be caught without Business Insurance. Protect your business, employees and everything you’ve worked hard for. Get a quote now!

DISCLAIMER: Please note that some of Advantage Insurance Solutions’ articles may have affiliate links from the Amazon Associates Program, with no additional charge to the reader. Before we publish a review, we utilize and evaluate the products we recommend. In addition to the products we’ve personally tested, we’ve received recommendations from many of our readers. That said, we want to make sure it is clear that if you use our links to purchase something, we will receive a small compensation from it. Thank you.