Should I Get Both Garage Liability And Garage Keepers Liability Insurance
As covered in the previous sections, its probably wise for you to get both coverages, so your business is covered against injuries to visitors to your business location, damage to other peoples property that happens while conducting business, and harm to or theft of vehicles left in your care at a covered business location.
How Much Does Garage Liability Insurance Cost
As with all insurance policies, the cost will largely be determined by the type of business you run. Larger businesses with more places and vehicles to insure will pay more. However, garage liability insurance is not terribly expensive and the cost should be considered part of your companys risk management plan.
According to CoverWallet, the average monthly price for garage liability is between $30-50 a month. Some of the things that may affect that monthly premium are:
- Your specific risks
- How much liability insurance you need
- What type of business you run
- The size of your business
- How many employees you have
- The location of your business
Garage Keepers Vs Garage Liability Insurance
From repair shops to body shops, many small business owners get confused about garage keepers liability and garage liability insurance policies. Naturally, many assume that they are one in the same, but they are not.
For starters, their protection and their coverage differs. How so? Well, you know now that garage keepers is a unique policy that protects a clients vehicle while they are in your custody from four main perils:
Garage liability, on the other hand, protects your business from general liability issues that may come up during your garage business daily operations. It often acts as a blend of commercial auto insurance and general liability insurance. It usually covers the following types of damages:
- Third-party injuries
- Liability costs
- Structure repair
Put simply, garage keepers protect the customers vehicle from unexpected damages , whereas garage liability insurance protects the business itself from damages to third parties that occur along the line of duty.
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Benefits Of Working With A Richmond Hill Insurance Broker
We understand that dealing with insurance can be an overwhelming task, especially if you are just starting out with your business. That is why at D.G Bevan we offer local insurance brokers with 20 plus years of experience to help answer any questions or concerns that you might have. We offer customization of packages to make sure every aspect of your life if covered and tailored to your own specific needs. We want to create a relationship with you and your business or family so that no matter how freak the accident you know that we are on your side. Contact one of our Richmond Hill insurance brokers today and request a free quote.
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What Garage Liability Insurance Doesnt Cover
As a foundational piece of insurance, liability is important and necessary. However, while liability insurance covers injuries and third-party property damage, it will not cover all of the scenarios that may befall your business. Here are some specific things garage liability wont cover:
- Employee Injuries: Injuries to an employee are covered under workers compensation insurance.
- Damage To Your Property: While damage to other peoples property is covered, you will need commercial property insurance to file a claim for assistance repairing your own damage after an accident or incident.
- Negligence: If its proven that accidents happened because of your own negligence, the insurance company doesnt have to pay the claim.
- Fire/Flood/Property Damage Sustained From A Natural Disaster: Some natural disasters are covered under commercial property insurance however, flood and earthquake are often extra endorsements, so be sure to check the specifics of your policy.
- The Loss Of Income If You Need To Close Your Doors: Business interruption insurance will help with lost income and the cost of relocation if a disaster or accident causes you to shut down your business and you lose money.
How Much Will My Client Need To Spend On These Policies
The premium amount varies, because each business owners specifics are different. A repair shop with a recent claim of $40,000 will likely pay more than another shop thats never filed a claim. The insurance cost will depend on numerous factors, including the type of business, previously filed claims, the number of employees, their driving records, the location of the business, and the level of onsite security.
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Get A Quote Ongarage Coverage
When you operate a business that offers automotive services, you face unique hazards. Moving vehicles, tools, oil spills, and equipment such as car lifts can all present risks to the people who visit your location, and accidents can occur when vehicles are test-driven. Garage Liability Insurance is specifically designed to protect your automotive business from these risks, providing financial support if an incident arises.
Thimble: Covering Your Business From General Liability
If you work in the auto industry, youre regularly exposed to risk. And, as a small business owner, your job is to mitigate that risk, however possible. But how do you lower your risk profile and protect yourself from liability?
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If theres a chance that someone incurs an injury in your shop or that you damage a clients property while providing your services, we can provide coverage with general liability insurance.
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Who Should Acquire A Garage Insurance Policy
After learning more about garage insurance, you may be wondering if you really need this type of policy. If you own any type of business that deals with automobiles, having such a policy can be invaluable. This does not just refer to businesses that repair or customize vehicles, but also businesses like emissions testing sites and valet services. In short, garage liability insurance is for any business that sells, transports, or fixes vehicles.
In some instances, garage liability insurance is required by landlords who wish to protect their assets should a certain business activity result in a claim. Having the proper liability policies can also provide you with peace of mind. Remember, garage insurance does not just cover standard vehicles like cars and trucks. It can also cover individual or fleets of motorcycles, trailers, and tractor-trailers. While garage liability insurance is not mandatory in most states, having coverage could potentially save your business from financial disaster.
What Is Garage Keepers Liability Insurance
Garage keepers liability insurance protects vehicles you have in your possession but dont own usually customer cars youre servicing or taking care of.
For example, a customer drops off a car for servicing or repairs. A mechanic drives it into the service bay and hits a bollard by accident. The incident results in a dented fender and other vehicle damage. Garage keepers liability protection would cover the repairs to the vehicle up to policy limits. You need this coverage because this type of incident is expressly not covered by garage liability insurance.
Learn more at the best garage keepers insurance companies.
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Garage Liability Vs General Liability
Because theres crossover between general liability insurance and garage liability policies, many people are confused about the difference between the two. Theyre left wondering whether they should get one or the other.
Truthfully, its important that you have both types of policies in order to cover exposure gaps. Put simply, they provide protection for different things:
Garage liability A garage liability policy is more limited in scope. It protects garage operations and liability of business-owned vehicles.
General liability A general liability policy covers liability exposure for third-party injuries and third-party property damage, but doesnt provide auto coverage.
Since every business has different risks, its important to weigh the pros and cons, and consider your particular exposures. By taking the time to assess your operation, you can make an informed decision about the type of coverage .
Why Garage Insurance Is Important
If you have a business that performs garage functions, such as repair services, they are likely storing and working on vehicles that can be expensive. These policies can help protect customers’ vehicles and the expense that can come if the vehicles were damaged or stolen while in the garage.
Garage insurance gives the business owner and their customers peace of mind that their vehicle is protected while it’s being serviced. The cost of insurance is significantly less than the cost for theft or multiple vehicle damage stemming from a disaster such as a garage fire.
Some of the main reasons that business owners will pay for garage insurance include:
- Protecting customer property against theft.
- Protecting customers against bodily injury.
- Protecting the shop against liability and financial risks.
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Should I Get Garage Liability Or Garagekeepers Liability Insurance
If youre just getting started, youll need garage liability insurance. Its a standard policy and is often required for most auto service provider operations.
Because it covers the basic risks business owners face every day, garage liability is a fundamental general liability insurance policy for auto-related businesses including :
- Oil change stations
- Auto parts stores.
Garagekeepers liability insurance is also critical when working in an auto-related business. Think of garagekeepers liability as providing an additional cushion to protect your shop. As you expand your business maybe renting a bigger space or adding another bay garagekeepers liability helps protect your customers vehicles.
Garage Keepers Insurance 101
Garage keepers liability insurance is a specialty policy that protects vehicles that have been entrusted to the garage for service or repair.
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Does your small business work with cars or automobiles? If so, you might be wondering what type of insurance is best for your business. Garage keepers insurance, for example, is what many shop owners use to protect their customers vehicles from being damaged while its in their care.
But what does garage keepers insurance cover? And is garage keepers insurance and garage liability insurance the same thing? . In this guide, well answer your questions and more.
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What Garage Liability Insurance Covers
A basic garage liability insurance policy will include the foundations of both general liability and commercial auto for garage owners. Here is what the policy typically will cover:
- Bodily Injury Coverage: If a customer slips and falls at your garage, this insurance will cover the medical bills for your customer, legal costs to defend yourself in a lawsuit, and third-party repairs.
- Third-Party Property Damage Coverage: If a clients car is damaged while its being stored in your garage, you will be protected against the cost associated with replacing or repairing the car.
- Product Liability: If you install a faulty part as part of a repair and it causes damage property damage, your garage liability protection will cover this scenario.
- Legal Costs & Attorney Fees: Need to defend yourself in a lawsuit? Liability covers the legal costs associated with a lawsuit brought to you regarding third-party bodily injury and third-party property damage.
What Does Garage Liability Insurance Exclude
Garage insurance doesnt cover your business property, such as the building itself, your tools, and your equipment. These are covered by commercial property insurance, which is included in a business owner’s policy .
Other common risks that arent covered by garage liability insurance include:
- Damage or theft of customer vehicles, which is covered by garage keepers liability insurance
- Damage to your own business vehicles, which falls under commercial auto insurance
- Employee injuries, which are covered by workers’ comp insurance
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Am I Required To Get Garage Liability Or Garage Keepers Insurance
Neither coverage is required if you own your business and its property outright. However, if you lease your business space, your landlord will likely require you to get garage liability insurance. Thats because they dont want to be held liable if someone becomes injured on a property they own, and they sue for medical expenses and damages.
Even if you arent required to have these coverages, its still a good idea to purchase them. If you dont have adequate garage liability or garage keepers protection, you leave yourself vulnerable if a visitor to your business location becomes injured, you damage other peoples property while conducting business, or a vehicle in your care is damaged or stolen.
In most cases, medical, repair, replacement, legal, and settlement costs related to these incidents could be enough to put most automotive operations out of business.
How Does It Work
Garage liability insurance is essentially a general liability policy that is custom-tailored to the needs of a given business. It typically combines key aspects of general liability insurance with important features of commercial auto insurance. It also usually includes a coverage known as garage keepers insurance, which covers some losses not covered by general liability or commercial auto policies.
General liability policies cover bodily injuries and property damage or loss suffered by non-employees as a result of normal business operations, but it does not cover damage to customers vehicles that occurs while those vehicles are in the custody, care, and control of the business. To protect against damage to customers vehicles on the businesss premises or being driven or worked on by an employee, youll need to add garage liability coverage.
Garage liability coverage will pay for damages to a vehicle in the custody, care, and control of the insured business, whether it is caused by the actions of an employee or those of a thief or vandal. It also covers damage from fire, severe weather, or other events beyond the insureds control. It does not, however, pay for damage to or the loss of personal property in the vehicle, such as a portable GPS unit, briefcase or laptop.
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Garage Keepers Insurance Or Dealer Physical Damage
Dealer Physical Damage provides coverage owned vehicles whereas Garage Keepers Insurance provides coverage for non-owned vehicles that the garage business is in care, custody and control.
An Auto Dealership that wants to insure their vehicle inventory against loss such as theft would choose Dealer Physical Damage because it provides coverage for owned vehicles.
A Repair Shop would choose to go with Garage Keepers Insurance to protect their clients vehicles from accidents that happens at the shop such as a dent or scratch.
Dealerships with both service and sales would choose to have both garage keepers insurance and dealer physical damage.
Whats The Difference Between Garage Liability And Garage Keepers Liability Coverage
Now that Ive explained what the two insurances cover, lets look at what makes each unique and I will explain why you need both.
Garage liabilityinsurance protects you if a covered incident happens while doing business, whether its an injury to a customer or other non-employee at your workplace or damage to someone elses property.
Garage keepers liability insurance helps pay for covered damages to your customers vehicles while theyre in your care and located on a covered property.
Garage liabilityspecifically excludes coverage for vehicles left in your care that are damaged or stolen.
Garage keepers does not cover personal injuries that happen while doing business or damage to other peoples property outside of cars in your care. However, it covers the vehicles in your care coverage gap in your garage liability policy.
In short: Garage liability insurance protects your business against some of the primary risks it faces. Garage keepers insurance covers vehicles in your care that arent covered by your garage liability insurance. The two types of insurance, taken together, fill in the coverage gaps of each and provide your business with a more complete level of liability protection.
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Everything You Need To Know About Garage Liability Insurance
Garage liability insurance protects business owners if a third party is injured or suffers damage due to business operations in the garage or an accident on the property.
Garage liability insurance protects business owners if a third party is injured or suffers damage due to business operations in the garage or an accident on the property.
Types Of Garage Keepers Coverage
Because the type of garage keepers insurance you select could impact your business, clients, and reputation, you need to be able to make an informed decision. Typically, garage keepers coverage provides three primary coverage options, including:
Legal liability coverage Legal liability coverage is the most common type of garage keepers insurance coverage. It only covers losses when an employee is legally liable for the damage to the customers vehicle, whether from negligence or mistake.
For example: If a mechanic were to crash the vehicle while test driving it, or if they forgot to set the parking break and it rolled into the garage pit, the insurance protection would apply since your employee was at fault.
Direct primary coverage This type of garage keepers insurance makes sure that the clients vehicle is covered regardless of whos liable or at fault. It allows the garage owner to take full charge and responsibility for any vehicle that is kept in the shop. This provides customers with the peace of mind that their vehicle will be guarded no matter what happens.
For example: If weather damages a car or should a thief break in and steal a locked vehicle, the insurance coverage would pay for damages or losses even though the garage did not do anything wrong. So, a customer wouldnt have to file a claim under their own auto policy.