Garage liability insurance safeguards auto dealerships, repair shops, and parking garages from property damage and bodily injury claims arising from their operations. Additionally, this can include harm that customers receive on the company’s property or harm brought on by installed goods or rendered services.
Garage liability insurance is a commercial general liability insurance that covers businesses involved in selling, repairing, servicing, or storing automobiles. The policy covers legal fees, medical expenses, property damage, and bodily injury costs but does not cover vehicle damage, requiring a separate garage keeper’s liability policy. Standard general liability insurance often doesn’t cover unique risks specific to businesses, making it crucial for financial protection.
Who Needs Garage Liability Insurance?
Garage insurance is typically required for businesses that have a physical location, such as a parking lot, garage, or storage space used for vehicle maintenance or storage. Among them are
- Auto repair businesses.
- Auto body shops.
- Impound or tow lots.
- Shops that sell mufflers.
- Transmission stores.
- Car sales.
- Tire and battery replacement shops.
- Vehicle repair facilities.
Businesses that have a direct hand in the maintenance, storage, or management of client automobiles are exposed to risks and liabilities that are covered by garage liability insurance.
Importance of Garage Liability Insurance
This insurance covers property injuries and potential lawsuits, offering financial security and various advantages for owners in case of accidents leading to lawsuits. Moreover, each and every victim of an injury needs medical attention.
Among the main advantages are
- Garage owners can stay out of legal hot water if mishaps or injuries happen on their property.
- Garage owners can rest easy knowing that their insurance will cover any legal-related costs.
- Owners of garages can get continuous coverage that is applicable to all of the locations the company uses.
- A commercial policy, as opposed to a personal policy, is more reasonably priced for garage owners.
What Does Garage Liability Insurance Cover?
Accidental property damage and third-party injuries are covered by liability insurance for garages. These components make up the coverage for this insurance.
Accidents
This part of your liability coverage for garages covers accidental injuries to other people, like a customer tripping and falling in your garage. Also, employee injuries are not included in this; those are covered by your workers’ compensation insurance. If you are sued due to an injury that did not happen to one of your employees, injury liability insurance will also pay your legal fees, verdicts, and settlements.
Property damage
This part of a liability insurance policy for garages covers unintentional property damage to other people. If you are sued for property damage, it covers your legal expenses, judgments, and settlements, much like liability insurance for injuries. This does not cover damage to a customer’s car; garage keepers insurance would. For instance, this covers the cost of fixing someone’s fence if you crash into it while test driving a customer’s vehicle.
Coverage for completed operations of products
This includes property damage and injuries resulting from issues like poor repair, faulty parts, or other liability claims pertaining to products or services you supplied after the work has been finished. For instance, products-completed operations insurance would cover repairs if you unintentionally use the incorrect part during auto maintenance and it results in damage to the car.
What Does Garage Liability Insurance Not Cover?
The following are the exclusions of garage liability insurance, which include
Commercial real estate
Commercial property insurance covers damage to your building and business property, including tools and computer equipment.
Property owned by the customer
Theft or damage to your clients’ cars while they are in your care is not covered by garage liability insurance. For this kind of damage, you will require a separate garage keeper’s insurance policy.
Harm to the cars you drive for work
You must make a claim under the collision or comprehensive sections of your commercial auto insurance policy if your work vehicles are stolen or damaged.
Workers illnesses and injuries
Your workers compensation insurance will pay for medical bills, lost wages, and other related costs if one of your employees is hurt on the job or becomes ill.
Deliberate actions
Intentionally caused injuries or property damage are not covered. However, your commercial property insurance would cover vandalism committed by third parties.
How Much Does Garage Liability Insurance Cost?
Garage liability insurance is a tailored solution based on several distinct business-specific factors, not a policy that fits all needs. These factors may consist of
- The magnitude of your business.
- Services that you provide.
- The quantity of workers.
- Number of client automobiles you manage.
- Location of your business.
Your premiums will also be impacted by the type of garage coverage you choose, which can range from basic liability to comprehensive plans with garage keepers insurance and other endorsements.
How to Get Garage Liability Insurance
To explore garage liability insurance options for your business, contact an insurance company, agent, or broker directly. To determine whether additional coverage is required to reduce your risks, make sure you understand what is covered and what is not under any policy for which you receive a quote.
