What Is Garage Liability Insurance?
As a repair shop, auto-body or auto-glass business you need a garage to safely store vehicles, whether these vehicles are being repaired or simply kept safe. These vehicles may include cars, trucks, bikes and many other kinds of equipment and machinery that is being stored until needed or repaired on-site.
Garage Liability Insurance is coverage for the different types of unwanted outcomes that can arise as a result of a business repairing vehicles or equipment.
Basically, Garage Liability insurance protects your business from third party bodily injury or property damage caused by an accident that as a result of your garage business operations. This means it’s a combination of a Business Auto form and a General Liability Insurance. It helps pay for claims associated with medical expenses, liability costs and repair expenditures as a result of the incident.
Depending on the industry your business operates within, the types of Garage protections you need will vary. If you are simply storing vehicles or equipment, your policy will differ from a different business policy that is protecting ongoing repairs within a Garage. Whatever your needs, this insurance can help you rest easy.
Do I Need Garage Liability Insurance?
Businesses with garage operations like auto repair or truck repair often store important vehicles from customers that may be expensive to repair or replace. Protecting this customers vehicles against theft, damages and replacements is a critical decision when considering the risks associated with not having insurance. Instead of worrying about unwanted outcomes, investing in insurance can provide you with peace of mind. It is covering the property of clients who have entrusted you to protect your property until it is ready to be returned to them.
This insurance will come in handy if you:
- Want to protect your customers property against theft
- Want to protect customers property against replacements
- Want to protect your customers against bodily injury
- Want to protect yourself and your business against financial risk
Still not sure what you need?
CoverWallet's Insurance Checklist , you'll find a list of insurance types needed for your specific business or industry.
What Does Garage Liability Insurance Cover?
At a High Level…
Business Garage Insurance can provide your business with protection in the event that things go wrong inside your Garage. In doing so, you can rest assured in the knowledge that you have protected both yourself and your business against unwanted outcomes.
Getting Into the Details…
While every Garage Liability Insurance policy is different and varies depending on the repairs or storage services you provide to clients, each includes extra protection to help you rest easy. There are several types of Business Garage protections you can choose depending on the type of coverage you need such as:
|Type of Coverage||Description||Example|
|Bodily Injury||If someone is injured at your business garage - excluding employees - you are legally liable for their injury, including medical payments.||If an clients slips and falls while entering in your business garage to get his car. Your business will be protected against the costs associated with medical or surgical treatment.|
|Third party property damage||Protection against damage to someone else’s property within your garage business.||If a client’s car is damaged during the repair process you will be protected against the cost associated with replacing or repairing the car.|
|Product Liability||If you manufacture or sell products in your business garage you are liable for the faults.||If you install a faulty parts in the client’s car and this results in a property damage you are coveraged against the associated costs.|
What Does Garage Liability Insurance Not Cover?
A Garage Liability policy is not going to cover injury to employees (Workers Compensation) and damage to the garage itself (Commercial Property).
If your policy covers an amount less than the total value of the financial losses associated with repairs, theft, or third party bodily injury the remaining amount will not be covered. This coverage does not apply to client property such as client vehicles being repaired. In addition to this coverage, Garagekeepers Liability coverage should be added to cover client vehicles and damages caused by client vehicles.
What Are the “Limits” on a Garage Liability Insurance Policy?
A Business Garage policy covers specific types of protections in addition to what your general liability policy covers. Each of these protections will have coverage of a given amount. If your policy provides coverage of $1 million, then this will be the limit. As the types of coverage needed for Business Garage insurance vary greatly, each will have a different amount. If you choose a policy that does not cover the full value, then you will be protected at a given limit.
How Much Does Garage Liability Insurance Cost?
The costs associated with Business Garage insurance vary in accordance with the specific policy you have chosen. Each policy is created based on the industry your business operates within, the types of equipment or vehicles you repair or store as well as whether or not employees are working within the garage itself. While any business owner can invest in Business Garage insurance, your specific needs will vary depending on these different aspects.
Overall, the cost will be contingent upon the type of the insurance policy you choose and how much protection it affords. You may choose a policy that includes one, several or all of the aforementioned protections, each of which have their costs. Regardless of the protections, you invest in; there is the likelihood that you will find yourself paying a premium which is a small percentage of that amount.