Insuring Customer Vehicles: What is Garage Keepers Insurance and Why Your Business Needs It

If you're in the automotive industry, whether you're a mechanic, auto body shop owner, or a car dealership, you know that accidents can happen. What happens if a customer's car is damaged while it's in your possession? That's where garage keepers insurance comes in. In this post, we'll discuss what garage keepers insurance is and what it covers.

What is Garage Keepers Insurance?

Garage keepers insurance is a type of insurance policy that provides coverage for businesses that store, maintain, or repair vehicles that belong to customers. This insurance can help protect your business from financial loss if a customer's vehicle is damaged or stolen while in your possession.

These policies come in two types: direct and indirect. Direct coverage is for businesses that have custody of customers' vehicles and are responsible for any damage that occurs. Indirect coverage is for businesses that are not directly responsible for the damage, but may still be held liable in certain situations.

What Does Garage Keepers Insurance Cover?

Policies can cover a wide range of situations, including:

1. Damage caused by fire, theft, or vandalism: If a customer's vehicle is damaged or stolen while in your possession, garage keepers insurance can cover the cost of repairs or replacement. 2. Collision damage: If one of your employees is driving a customer's vehicle and gets into an accident, garage keepers insurance can cover the cost of repairs. 3. Comprehensive damage: Comprehensive coverage can protect against non-collision damage, such as damage from natural disasters, falling objects, or animals. 4. Faulty workmanship: If a customer's vehicle is damaged due to a mistake made by one of your employees, garage keepers insurance can cover the cost of repairs. 5. Legal fees: If you're sued by a customer for damage to their vehicle, garage keepers insurance can cover the cost of legal fees and any settlements or judgments.

It's important to note that these policies only covers damage to customers' vehicles while they are in your possession. If a customer's vehicle is damaged while they are driving it or while it is parked elsewhere, their own insurance policy will need to cover the cost of repairs.

Conclusion

If you're in the automotive industry, having a garage keepers policy is essential. It can protect your business from financial loss if a customer's vehicle is damaged or stolen while in your possession as well as a wide range of situations, from collision damage to legal fees, so it's important to carefully review your policy to understand what is and isn't covered. By investing in the right insurance policy for your business, you can have peace of mind knowing that your livelihood is protected.