Q: Does my Dallas dealership need Garage Liability coverage, Garagekeepers coverage or both?
A: If you are an auto dealer, the answer is – you may need both.
Any business that handles automobiles needs garage liability. These include but are not limited to: Car dealerships, mechanics, oil change companies, even companies installing car radios.
Garage Liability protects you from a claim brought against your dealership by a third-party, whereas Garagekeepers protects you from a claim brought by a customer whose auto is damaged while in your custody. These two coverages are usually written in one package policy, making it easier to be sure you are properly protected.
What does basic garage liability insurance policy cover?
This policy cover’s bodily injury or property damage caused by an accident arising out of garage operations. The policy defines garage operations as the ownership, maintenance or use of locations for garage business. It also includes the ownership, maintenance or use of the autos.
For example, A customer trip’s over a piece of equipment in the shop whilst walking from one area to the next. In this case, the shop owners insurance company will pay for the medical care.
Garage Liability: Addition coverage
Garage liability insurance also covers products manufactured or sold by the shop. This includes property damage resulting from faulty parts installed in a customer's vehicle. These claims are subject to an individual accident limit and an aggregate limit. If employees drive company vehicles off the premises, you will also need commercial auto insurance coverage. This is often included in the garage's liability coverage but may require an additional endorsement and premium.
Question: Does my garage liability insurance policy cover property damage to vehicles in my shop?
No. If a customer’s car in the care, custody or control of the shop it is not covered in a standard garage liability policy. For this you would need a garage-keeper's policy. This policy will also cover employees while they are test driving the customer's vehicle.
What does Garagekeepers insurance provide?
Garagekeepers coverage provides protection only for the customers’ autos in the care, custody or control of the insured business. This coverage is separate from the Garage Liability policy, but is usually written as part of the same insurance package.
Garagekeepers coverage is offered in three levels
1. Garagekeepers Legal Liability
2. Direct Primary
3. Direct Excess
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Example: if there is a fire while a customer's car is stored in the garage, the shop owner is not covered unless he also has a garage-keeper's policy. This policy will also cover employees while they are test driving the customer's vehicle. General garage liability only covers other parties injured by the employee in case of an accident. Garage-keeper's limits and deductibles are applied per vehicle, which can be costly if an incident damages several cars at once.
Call us today,so we can put a policy together that's right for you (972) 991-9100
12770 Coit Road, Suite 110, Dallas, TX 75251
Fax: (972) 690-1733
The information contained on this page is provided for informational and educational purposes only