If your business handles customer vehicles, you need more than commercial general liability coverage to protect yourself from incidents that occur on your premises. Standard commercial general liability insurance usually will not cover damage to vehicles your business does not own. Businesses such as:
…require garage insurance to protect against common bodily injury and property damage claims.
If you run a garage or shop, customers will definitely visit. Basic garage liability covers your business for policy-specified amounts of medical expenses if a customer falls while on the premises. Similarly, like all businesses, you need protection in the event of unfair hiring practices litigation brought by an employee, or dishonesty coverage if your employee steals or damages a customer’s car.
Do you manufacture or sell products? Garage liability extends to these products as well, including property damage as a result of faulty parts installed in a customer’s vehicle.
What if there is an accident while your employee (or yourself) are driving a business-related vehicle? Basic garage liability covers damage to the other parties as well. Be aware, however, that such claims are subject to your policy limits.
Garage-keepers ‘buys back’ coverage lost through the care, custody or control exclusion in basic garage insurance. Garage-keeper’s Insurance specifically covers property damage to vehicles while in “care, custody or control” of your business and is what will protect you if a customer’s car is in the building when a fire breaks out. It also applies when an employee test drives a customer’s car as well.
Limits and deductibles are applied per vehicle, which can add up quickly if an incident damages several cars at once. Bottom line: get the insurance necessary to minimize your garage’s financial exposure.
To determine optimum coverage, premiums and deductibles, our agents are here to discuss your situation and what your business will require.