A Garage Keepers insurance Policy protects automotive business owners against damages incurred to a customer's vehicle while on site, for incidents involving fire, theft, extreme weather, and vandalism.

Here are some key points to review when you think about insurance for your automotive business garage:

What is Garage Keepers Insurance?

Garage Keepers Insurance can be used to make informed decisions about buying insurance for your garage, car shop, or auto repair shop. Garage Keepers Insurance protects an automotive service business from loss of a customer's vehicle if it is left under the supervision and care of the garage owner. This insurance is designed to protect auto repair shops, garages and car dealers who want to reduce risk in the servicing, repairing, or storage of autos on their premises or garages. These are the three things to consider when deciding whether or not to purchase this coverage.

What are the differences between Garage Liability and Garage Keepers?

Garage Liability Insurance is one type of insurance policy. The Garage Keepers Policy covers clients against vehicle damage, including theft, vandalism, fire, and extreme weather. However, this policy does not cover damage caused by faulty workmanship, parts, or out-of date warranties. This policy covers auto body shops and garages for bodily injury as well as property damage. This policy also provides liability insurance coverage to cover incidents that are related to garage operations, such as maintenance and ownership. Auto dealerships may be able to have their liability extended to include all cars on a car lot. This could include cars being sold or cars that are under maintenance.

Ask about Limits, Deductibles, and other details.

Every business owner has to decide on a deductible and a limit during the purchase process. This will affect the annual premium paid by the business and the amount the insurer will pay in the event that a claim is filed. When deciding on the coverage, you should consider whether the policy is Comprehensive or has Specified Loss. Comprehensive coverage covers damage to an auto caused by any cause. There are usually a few exceptions, which often include the auto's collision or overturn with another object. Garage keepers liability policies that cover the specific causes of loss are less expensive than comprehensive policies. However, they don't cover damage caused by fire, lightning or explosion, theft, mischief, vandalism, or other unforeseen circumstances.

These policies may be purchased with two deductibles. Both apply to each vehicle, and both are applicable to each event. Talking with your agent can help you determine whether or not you should have this policy. How big your business is, how much revenue it generates, and how many vehicles it has will all impact the amount of liability required by that business.

What types of liability are covered?

A Garage Keepers Policy covers three types of liability. These three types of liability are:

• Legal Liability

• Direct Primary

• Direct Excess

Legal Liability

Legal Liability is the most common type of liability that a business can file a claim under a Garage Keepers Insurance Policy. This type of claim covers damage caused by negligence of the insured to clients claims. This could be the case when a mechanic is in an accident while driving a vehicle.

Direct Primary

The DIrect Primary Liability covers the customer's vehicle, regardless of any liability. This type of liability covers the business's loss if it is not their fault. This type of claim is most common due to theft and weather damage.

Direct Excess

Direct excess is similar to direct primary but does not pay more than any other collectible insurance. Although this policy is cheaper, it does require that the business takes on additional losses in the event of a large claim.

Take into account exclusions

A business owner must be aware of all exclusions before they purchase any type of insurance policy. Garage Keepers Insurance policy excludes the following: theft by employees, defective parts, mobile radios and scanners, radar detectors or CD players, speakers, or any other equipment that is not permanently mounted in the vehicle.

Get a policy review at no cost

If you have an existing policy, a Pearson Wallace Insurance agency will gladly review your policy with you at no cost to make sure you are adequately covered. If you do not have a policy, you can get a quote now.