Key Takeaways:
- In addition to standard business insurance coverage, auto-related businesses may need Garage Liability and Garagekeeper Liability to be fully protected, especially when customers leave their vehicles in the business’s care.
- Garage Liability and Garagekeeper Liability Insurance cover two different aspects of business insurance coverage, with one protecting the business and the other protecting the customers’ property. Both are necessary to be fully protected.
- Finding a solid business insurance agent with expertise in the automotive industry gives you an advocate and advisor on business and insurance-related issues.
So, you’re good with cars and want to open or expand a business that deals with some aspects of the automotive industry? Whether it’s auto repair, car sales, towing service, body shop, tire shop, or car wash, having insurance is crucial for protecting your assets and your customers’ vehicles while they are in your care.
From day one, securing the right insurance coverage is vital to shield yourself from unexpected liabilities that could jeopardize your business. While standard business insurance policies are essential, auto dealers and service shop owners need specialized coverage tailored to garages where customers’ vehicles are stored.
Garage Liability vs. Garagekeeper Liability
Garage Liability and Garagekeeper Liability Insurance are often confusing terms, but both play crucial roles in protecting your business. Let’s delve into each to understand their differences.
Garage Liability Insurance
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Scope of Coverage – Similar to General Liability Insurance, Garage Liability Insurance covers risks related to running your automotive garage business. It includes:
- Bodily injury to customers or visitors on your property, covering medical expenses, ambulance costs, and lost wages.
- Property damage caused by events like fires or weather conditions.
- Personal or reputational harm due to libel, slander, or social media incidents.
- Advertising and marketing injuries such as copyright infringement.
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Exclusions
- Damages or theft of customers’ property left in your care.
- Employee work-related injuries covered by Workers’ Compensation Insurance.
- Mistakes in professional services, like incorrect vehicle repairs.
- Examples of coverage – Slip and fall accidents or accidental property damage occurring in your shop.
Garagekeeper Liability Insurance
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Scope of Coverage – This insurance protects against damage to a customer’s vehicle during repair, restoration, or storage. It includes:
- Vehicles parked or stored on your property.
- Vehicles being test-driven.
- Vehicles damaged by vandalism or collisions.
- Property damage due to employee negligence.
- Damages from fire, flood, or unforeseen events while in your possession.
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Exclusions
- Personal items like factory stereo equipment or electronics in the vehicle.
- Property items usually stored in the vehicle like CDs or personal belongings.
- Exterior equipment like phones or GPS systems that are not permanently mounted.
Benefits of Auto Shop Insurance Protection
Understanding the importance of both garage liability and garagekeeper liability insurance is crucial for comprehensive coverage. These insurances fill essential gaps that could expose your business to risks or liabilities.
To ensure your business’s safety and reputation, it’s vital to establish a strong partnership with an experienced insurance agent specializing in the automotive sector. This partnership will help you secure the best coverage and pricing tailored to your needs.
Types of Garagekeepers Liability Insurance
Dive deeper into Garagekeepers Liability Insurance to understand the various coverage levels available. Discuss these options with your agent to select the most suitable one for your business.
- Legal Liability Coverage – Protects your business when an employee damages a customer’s vehicle due to negligence.
- Direct Primary Coverage – Ensures the customer’s vehicle is protected regardless of fault, offering reassurance to both parties.
- Direct Excess Coverage – Pays in excess of any amounts collectible under the property owner’s policy, less common but cost-effective.
What to Provide Your Agent for a Quote
When seeking insurance quotes, provide detailed information about your operations and business needs. This information will help your agent tailor a competitive and comprehensive insurance package for you.
Additionally, effective risk management strategies can further reduce your insurance costs. Consider maintaining a safe and secure environment to mitigate potential risks.
Summary
Prioritizing both garage liability and garagekeeper liability insurance is essential for any automotive business. These policies safeguard your business and customers’ vehicles, offering peace of mind and long-term protection.
To ensure your insurance needs are met, work closely with a knowledgeable insurance agent who understands the nuances of your industry. This collaboration will help you secure optimal coverage and favorable terms for your auto service business.
