July 6, 2018

Garage Keepers Liability Coverage – What You Need To Know

When you drop off your car at an auto repair garage, you do not only expect it to be fixed, but you expect it to remain safe while in the custody of the garage keeper. A general liability policy does not cover damage to vehicles that do not belong to the insured party. This is where the garage keepers liability coverage comes in. Here is a look at what the insurance is about, the applications of the garage keeper’s coverage, the different variations of garage related insurance, and what to consider when getting the policy.

What is Garage Keepers Coverage?
Garagekeepers liability coverage is an insurance policy that covers different types of risks that are likely to affect a customer’s car while it’s in a car shop. The risks that may arise in an auto shop include customer injuries, faulty products manufactured at the shop, and property damage of a vehicle while in the custody of the shop. Garage keeper’s coverage is mainly applicable to service stations, car dealerships, repair shops, and tow truck drivers.

Types of Garage Keepers Insurance
The two main types of garage keeper’s coverage are garage liability insurance and garage keeper’s policy.

Policies relating to injuries
Garagekeepers liability insurance deals with injuries incurred at the garage. For example, in case a client slips and falls when walking through a repair shop to consult a mechanic, the garage owner’s insurance company is liable for the injured party’s medical care. Many garage liability policies cover liabilities occurring during the normal operations at the shop. These include discrimination lawsuits against the employer. Furthermore, the garage liability policy also has a dishonesty portion that caters for occasions where an employee vandalizes or steals a client’s vehicle.

Policies to products and property damage
Garagekeepers liability policies also cater to products sold or manufactured by the shop. For example, when a client causes property damage due to faulty parts installed in their car, this policy covers these damages. If an employee is involved in an accident involving a company vehicle that is off the garage premises, an auto insurance policy will be required on top of the garage liability policy.

Garage keepers insurance mainly covers property damage involving customer vehicles while they are in the custody of the shop. For example, in an incident where a fire breaks out at a garage holding a customer’s car, the shop owner will not be covered unless they have a garage keeper’s policy. This policy will also cover employees who are test driving a customer’s car whereas the general garage policy is restricted to parties injured by employees of the garage. One notable aspect of garage keeper’s policy is that the deductibles and limits are applied per vehicle. This can be very costly considering an occurrence that damages several cars in the garage.

Towing liability insurance
The other types of garage related insurance include towing liability insurance, on-hook insurance, and cargo insurance. Towing liability insurance covers damage to vehicles owned by you or your business. On-hook insurance covers other people’s vehicles when they are being towed and while they’re hooked to the tow truck whereas cargo insurance protects the personal effects left inside a car that is under your custody.

Considerations Before Getting Garage Keeper’s Policy
Before buying a garage keeper’s policy, there are three things you need to consider: the limit, the deductibles, and the reputation of the insurance provider. Insurance providers offer policies based on a certain limit. Go with a limit that you feel comfortable with based on the most likely risks.

The next thing you need to watch out for is deductibles. Insurance providers require that you cover part of the damage or liability before they cater for the rest. Go for a deductible that you can pay comfortably. Finally, research on a reliable insurance provider to avoid complications in the claiming process.

Garage keeper’s coverage is necessary for anyone with a car dealership, towing service, or car repair shop. This policy mainly covers damages affecting a customer’s car. Garage keeper’s coverage can be distinguished from garage insurance which is mainly concerned with the garage business. Before getting a garage keeper’s policy, carefully consider the limit, deductibles, and insurance provider.