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Why do I need a General liability/garage liability for my mechanic shop?

On all general liability policies, there is an exclusion for the property while “it is under the care, custody, and control of the insured” What this means is when you take control of someone else’s property to fix or repair, there is no coverage on the piece of property if you damage it!  This presents a unique problem for anyone involved in the auto repair industry as vehicles fall under this exclusion.  Mechanics needs a special kind of policy called a garage keepers policy, even if they do not store vehicles in any kind of garage or physical location.  


Along with the above-mentioned problem about “care, custody, and control”, anyone involved in the auto repair industry is presented with unusual exposures to loss.  A garage liability policy can pick up all of those exposures including:


  • If a customer’s vehicle breaks down after the client has left the shop and it is found out to be the mechanics fault as to why the vehicle broke down and suffered more damage.  

  • These policies can include coverage for an insured, while driving a customer’s vehicle, either to pick up or drop off.

  • If the insured is a mobile operation and has a vehicle, they use to drive to their customers location, coverage for when on the road AND when working on customers vehicles can be included.

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