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Garage Liability Insurance: What it is, and How it Works

File Photo: Garage Liability Insurance: What it is, and How it Works
File Photo: Garage Liability Insurance: What it is, and How it Works File Photo: Garage Liability Insurance: What it is, and How it Works

Garage Liability Insurance?

Garage liability insurance is automotive-specific. Automobile dealerships, parking lot/garage operators, tow-truck operators, service stations, and customization/repair shops will include garage liability insurance in their company liability coverage. The coverage covers property damage and personal injuries from surgeries. This is not garage keepers insurance.

How Garage Liability Insurance Works

Garage liability insurance covers the daily operations of automobile firms as an umbrella policy. Insurance adds protection to the company’s general liability coverage. Unlike most commercial or company liability insurance, coverage for direct garage activities includes physical injury and property damage.

Before selecting a policy, the company owner should ensure garage liability coverage will supplement their business liability coverage.

The coverage covers injuries to clients on business grounds up to the specified limits. Most garage insurance covers employee dishonesty for car theft or vandalism. Additional fees may apply to corporate vehicles such as courtesy vans and parts delivery trucks. Optional safeguards include damage from company-sold components and coverage for defective parts on a client’s vehicle.

Garage liability insurance excludes policyholder tools, buildings, and personal and commercial property. It does not cover vandalism, stolen automobiles, or hail damage. The coverage does not cover on-site service car accidents or damage. All essential and extra insurance items have a maximum liability coverage amount, likely with aggregate limitations per claim or year.

Insurance plans for commercial general liability (CGL) differ in coverage levels. This insurance may cover the business’s facilities from claims made during normal operations. It may cover product-related personal harm and property damage.

The Garage Liability Act Does Not Cover Garage Keepers

Garage-keepers insurance covers client cars while under the policyholder’s care. Damage might occur during road tests and vehicle storage during non-working hours. The keeper’s insurance covers the client’s automobile theft and damage. Businesses with many sites need site-specific rules.

Business insurance alternatives

Businesses can also get additional risk insurance.

  • Employment practices liability insurance covers sexual harassment and discrimination claims.
  • Professional liability insurance protects against allegations of negligence due to mistakes or poor performance.
  • Property insurance protects equipment, signs, inventory, and furnishings against fire, storms, and theft. However, floods and earthquakes require extra coverage.
  • Business interruption insurance covers lost income during incidents like protracted power outages that disrupt operations.
  • Employers must have workers’ compensation insurance to safeguard employees and cover medical expenses in case of injury. A deceased worker’s immediate family receives lost pay and death compensation.
  • A business liability insurance policy might include extra-covered firms or people. If an auto repair garage contracts with another firm to wash cars, the company may compel the garage owners to include it as an extra insured on their liability policy.

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