What is Garage Liability Insurance and what does it cover?
What is Garage Liability Insurance and what does it cover?
Carport responsibility insurance covers Bodily Injury and or Property Damage arising out of Garage operations and protects the businesses from losses arising out of their garage operations.
What type of Business needs Garage Liability?
This is for Body Shops, Auto Service and Repair shops, Tow-Truck Operators to name a few.
What is Garage Keepers coverage?
For a business that services, repairs, or transports cars/ trucks, etc . another type of insurance policy that compliments Garage Liability is Garage keepers (physical damage) insurance. This pays for Physical Damages losses to vehicles which arise from the insured’s business operations. For example, while your car is being repaired or stored before or after repairs at a body shop.
Garage Keepers (Physical Damage) coverage can be purchase on a legal liability bases, or one of the Direct Coverage Options: Direct Excess or Direct Primary.
With Garage Keepers Legal Liability coverage, the garage business policy would only apply if they caused damage to your auto. For example, the shop’s insurance would apply if the shop employee were to damage your car in an auto accident. But if a body shop has completed repairs and parked your car in their lost awaiting for you to pick it up and hail damages your car, the shop’s legal liability coverage would not cover your loss because the shop is not legally liable for hail.
The two Direct Options for Garage Keepers (physical damage) coverage are Direct Excess and Direct Primary.
Garage Keepers Direct Excess applies without regard to (the shops) legal liability for a covered loss to a covered auto and is excess over any other collectible insurance regardless of whether the other insurance covers the shops interest or any other insureds interest or the interest of the covered autos owner. For example, if your car has physical damage coverage (such as other that collision) it would apply to the previous hail loss example. The shop’s insurance would not apply.
But if the shop has Garage Keepers Direct Primary coverage; coverage applies without regard to the insureds or any other insureds legal liability for a covered loss to a covered auto and the shops insurance is Primary insurance. With Direct Primary coverage using the previous hail loss example, the shop’s insurance would apply.
As an independent agency we offer the ability to shop for the best protection and best premium. Since 1977 we have been protecting the Business and Personal insurance of our value clients. To find out more call us today at 708-799-2655.
