Haris Ashley
Garage auto insurance, also known as garage liability insurance, is a type of specialty insurance designed for businesses that provide car-related services. It covers medical, repair, or replacement costs involving customer bodily injury or property damage that occurs on the company's premises or as a result of work performed. Garage liability insurance is carried by businesses that sell, fix, service, or store vehicles, including car dealerships, repair shops, and parking garages. It is important for these businesses to have sufficient coverage in place to protect against lawsuits and financial claims resulting from their operations.
| Characteristics | Values |
|---|---|
| Type of Insurance | Commercial general liability insurance |
| Target | Automotive industry |
| Covered Entities | Automobile dealerships, parking lots, parking garages operators, tow-truck operators, service stations, customization shops, repair shops, tire and battery repair facilities, auto service centers, mechanics, oil change shops, emissions testing and inspection centers, auto glass repair shops |
| Coverage | Third-party bodily injury, property damage, medical costs, damage to customer's vehicles, customer slip and falls, damage to other's property, use of vehicles in garage business, tools, employee tools, laptops, machinery, equipment, physical damage to vehicles, watercraft, equipment, work-related injuries to employees, large liability losses, buildings, business personal property, property of others, damage caused by faulty parts or work, protection against certain types of fraud or theft, drive other cars coverage, protection and indemnity for boat repair, multi-policy discount, life multi-policy discount |
| Exclusions | Damage or theft of items owned by the insured business, damage to the building in which the business operates, vehicles owned and operated by the business or its employees, employee injuries and illnesses, damage to or loss of a customer's vehicle while in the care, custody, and control of the business |
| Cost | $1,150 to $2,500 annually |
| Providers | Next Insurance, The Hartford, Progressive Commercial, Nationwide, Tivly, CoverWallet, Farmers, CyberPolicy, Liberty Mutual |
What You'll Learn
Garage liability insurance covers third-party injuries and property damage
Garage liability insurance is a type of small business insurance designed for businesses that provide car-related services. It is a bundled policy that combines general liability insurance with garage-specific coverage, adding an extra layer of protection beyond a standard general liability insurance plan. Garage liability insurance covers third-party injuries and property damage, offering financial protection to business owners if a third party is injured or suffers property damage due to business operations in the garage or an accident on the property.
Third-party injuries covered by garage liability insurance include bodily harm to non-employees, such as customers, vendors, and partners. For example, if a customer slips on oil and breaks their arm, the insurance would cover their medical expenses. It also covers damage to third-party property, such as a vendor's cell phone being damaged by falling equipment.
Garage liability insurance also includes products and completed operations coverage, addressing issues that arise from work completed in the garage. For instance, if a customer is injured due to a loose tire that was worked on, the insurance would cover their medical expenses. Additionally, some comprehensive policies may cover damage to a customer's vehicle during towing, which falls under work not yet completed.
While garage liability insurance covers third-party injuries and property damage, it is important to note that it does not cover damage to customer vehicles on-site for service. For that, businesses would need separate garage keepers' insurance or garagekeepers legal liability coverage.
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It does not cover company vehicles or property
Garage liability insurance is a type of small business insurance designed specifically for businesses that provide car-related services. It is a bundled policy that combines general liability insurance with garage-specific coverage.
Garage liability insurance does not cover company vehicles or property. The collision or comprehensive portion of a commercial auto insurance policy covers theft or damage to company-owned vehicles. You need separate coverage under a commercial property insurance policy for physical damage to the business premises and property, including tools and equipment.
Garage liability insurance is not the same as garage-keepers coverage. Garage-keepers insurance is a separate policy that covers property damage to a client's car while it is in the care of the policyholder. This can include damage during road test drives and while storing the vehicle during non-working hours. The keeper's insurance will cover vandalism and theft of a customer's car.
Garage insurance is specifically designed to meet the needs of today's car, boat, off-road vehicle, and farm implement dealers and repair shops. It provides coverage for incidents resulting from business operations, such as customer slip and falls, damage to others' property, use of vehicles in the garage business, and more. It offers a variety of coverages that protect property while away from the primary location, including tools, employee tools, laptops, and machinery and equipment.
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Garage insurance is different from general liability insurance
Garage insurance is a type of specialty insurance designed for businesses in the automotive industry. It is a type of umbrella policy that covers the day-to-day operations of businesses such as car dealerships, parking garages, service stations, and repair shops.
On the other hand, general liability insurance is a more general policy that covers common third-party risks for most industries. It is designed to protect businesses from lawsuits related to injuries, damage to client property, and accusations of false advertising.
- Scope: Garage insurance is tailored to the specific needs of the automotive industry, while general liability insurance is more broad and covers a wide range of industries.
- Coverage: Garage insurance covers third-party injuries, property damage, and damage to customer vehicles. It also includes protection for businesses that sell, store, and service vehicles. General liability insurance typically excludes coverage for auto-related businesses and does not cover damage to customer vehicles.
- Risk Level: Garage insurance is designed for high-risk businesses, while general liability insurance is suitable for lower-risk industries.
- Specificity: Garage insurance is a more specialized form of liability insurance, covering specific risks associated with automotive businesses. General liability insurance is a more general policy that covers a broader range of risks.
- Target Industry: Garage insurance is specifically designed for automotive businesses, while general liability insurance is suitable for a wide range of industries, including those that market goods and services, operate restaurants or stores, or provide professional advice.
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Garagekeepers insurance covers customer vehicles
Garagekeepers insurance is a type of specialty insurance that covers customer vehicles while they are in the care of a garage or auto repair business. This type of insurance is designed to protect the customer's vehicle from damage, theft, or vandalism while it is being serviced, repaired, or stored by the business.
Garagekeepers insurance is an important coverage for businesses that regularly take custody of customer vehicles, such as repair shops, service centres, and parking garages. It provides peace of mind for customers, knowing that their vehicles are protected while in the care of the business.
This type of insurance typically offers three primary coverage options: legal liability coverage, direct primary coverage, and direct excess coverage. Legal liability coverage applies when an employee is legally liable for damage to the customer's vehicle due to negligence or mistakes. Direct primary coverage protects the customer's vehicle regardless of who is at fault, while direct excess coverage is a cheaper alternative that pays in excess of any amount covered under the owner's standard auto policy.
Garagekeepers insurance is different from garage liability insurance, which protects the business itself from third-party liability claims and general liability issues that may arise during daily operations. Garage liability insurance covers bodily injury and property damage resulting from direct garage operations, while garagekeepers insurance specifically covers damage to customer vehicles.
Businesses that offer towing services or operate service stations may also consider Garagekeepers Legal Liability Insurance, which is an optional coverage. This type of insurance protects the customer's vehicle when it is being kept at a covered location for parking, storing, or servicing.
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Garage insurance covers work not yet completed
Garage liability insurance is a type of specialty insurance designed for businesses in the automotive industry. It is intended to protect car-based service businesses and their owners from financial losses in the event of damage or injury caused by their operations. This type of insurance is particularly relevant to businesses such as automobile dealerships, parking lot operators, repair shops, and service stations.
Garage insurance covers a range of liabilities that garage owners and repair shops commonly face. For example, it covers customer injuries on the business premises, such as slips and falls. It also covers damages resulting from faulty work or parts. This includes issues arising from work that is not yet completed, such as damage to a customer's vehicle during towing.
It is important to note that not all policies are the same, and some may not include coverage for work not yet completed. Therefore, it is crucial for business owners to carefully review the terms and conditions of their policy to ensure they have adequate protection.
In addition to the coverage mentioned above, garage liability insurance typically includes provisions for property damage caused by direct garage operations. This can include damage to a third party's property, such as a vendor's cell phone, during a car maintenance workshop.
Garage insurance is an essential form of protection for businesses in the automotive industry, as it provides an extra layer of coverage beyond standard general liability insurance. By having this insurance, business owners can have peace of mind knowing that they are protected from potential financial losses due to accidents or incidents that may occur on their premises or as a result of their operations.
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Frequently asked questions
Garage auto insurance is a type of specialty insurance for businesses in the automotive industry. It covers automotive dealerships, parking garages, and repair shops against property damage and bodily injury claims resulting from their operations.
Automotive business owners, including towing companies, parking garages, auto repair shops, and dealerships, typically require garage liability insurance for financial protection against potential claims.
Garage liability insurance covers medical costs for third-party bodily injuries that occur on the business premises or as a result of the business's operations. It also covers damage to third-party property, including customer vehicles in the business's possession for repair (with an additional garage keepers policy).
Garage liability insurance does not cover damage or theft of the insured business's property, equipment, or vehicles. It also excludes employee injuries, which are typically covered under workers' compensation.
The cost varies depending on factors such as the business's location, revenue, number of employees, and the risks associated with its services. Annual premiums can range from $1,150 to $2,500 or more, depending on the level of coverage and specific business needs.
