What’s the deal with garage liability insurance and garagekeepers insurance?
There are many car dealers that are involved in sales and leasing of vehicles, as well as the repairs of their customer’s cars. These operators not only hold the responsibility of transporting or fixing their client’s vehicles, but also keeping these vehicles safe. This is where garage liability insurance and garagekeepers insurance come into play. These policies are specially designed to assist you in protecting your client’s property (as well as your business) in case of any emergency and damage. Both of these insurance policies complement each other and make sure that you don’t suffer any kind of gaps in your coverage.
Basic garage liability insurance
A garage liability insurance policy covers physical injuries or property damages caused in accidents during garage business operations. This coverage is purchased by new or used auto dealers, as well as repair shops. Additionally, this insurance policy covers third party damages, property damage if caused by tools owned by the auto shop, liability claims, and products which are manufactured by your business and causes harm to the client’s vehicle.
If the situation arises that a client falls at your doorsteps and decides to sue you for medical coverage – then this insurance policy would kick-in. The coverage would also lend a helping hand in case your vehicle collides with another automobile and causes damages.
A garagekeeper insurance policy on the other hand assists in protecting you if your client’s vehicle is damaged while it is in your possession. A standard garage liability policy, however, does not include this particular coverage. This insurance policy safeguards your client’s vehicles from any kind of damage while it is still in your possession. These damages could be caused by fire, theft, extreme weather conditions, or vandalism at your shop. However, this policy does not cover the damages which result from any kind of defective workmanship or inadequate warranties.
Who needs garage liability?
Auto dealers, such as new or used car dealers who are in the business of selling private passenger units, heavy trucks, recreational vehicles, etc. need garage liability insurance. Also, repair shops and other service providers such as body shops, roadside assistance, storage garage, etc. also require garage liability insurance.
Who needs garagekeepers?
Though garagekeepers insurance is not legally required, it is a good idea for any auto business that has care, custody and control of any of their client’s vehicles.
Being aware of these distinct differences is important to any car dealership or auto repair shop. It also helps you to avoid a few of these crucial mistakes while shopping for the right insurance for your business.