Protect Your Business and Customers: The Importance of Garage Keepers Insurance
Garage keeper's liability insurance, also known as garage liability insurance, is a type of insurance that is specifically designed to protect the financial interests of businesses that offer storage, repair, or maintenance services for vehicles. This type of insurance provides coverage for damages to vehicles in the care, custody, and control of the insured business, as well as for third-party liability claims that may arise in the course of the business's operations.
One of the main types of coverage provided by garage keeper's liability insurance is "direct primary" coverage. This coverage applies to damages that occur to a customer's vehicle while it is in the care, custody, and control of the insured business. For example, if a customer leaves their vehicle at a repair shop for repairs, and the vehicle is damaged while it is at the shop (e.g. by a fire or collision), the repair shop's garage keeper's liability insurance would typically cover the cost of repairs to the vehicle.
Another important aspect of garage keeper's liability insurance is third-party liability coverage. This coverage provides protection for the insured business against claims made by third parties for property damage or bodily injury that arises from the business's operations. For example, if a customer's vehicle that is being repaired at a shop malfunctions and causes an accident, the repair shop's garage keeper's liability insurance would typically cover the cost of any property damage or bodily injury caused by the accident.
In addition to the above types of coverage, many garage keeper's liability insurance policies also include additional coverages such as:
Personal injury coverage, which provides protection against claims of defamation, slander, libel, and other personal injury claims.
Medical payments coverage, which pays for medical expenses incurred by a third party as a result of an accident that occurs on the insured's property.
Business interruption coverage, which provides protection against lost income and extra expenses incurred if the business is forced to shut down due to damage to the property.
It's important to note that garage keeper's liability insurance policies vary widely in terms of the types and amounts of coverage they provide, so it is essential for business owners to carefully review their to ensure that they have adequate coverage for their specific needs. The exact coverage and limits will vary between policies, it's crucial to review and understand what is covered. Reviews are best done with experienced insurance agents who can easily identify your business' needs.