garage keeper liability insurance
The insurance policy that takes care of your vehicles and keeps your auto business running.
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What Is Garage Keeper Liability Insurance?
Car dealerships and repair shops often buy garage liability insurance to protect themselves from any uncalled-for financial damage. Its coverage extends explicitly to vehicles kept in garages and given to the custody of a repair shop, car dealership company, parking facility, or any such auto business. If a customer’s car is damaged or stolen, the garage keeper insurance policy will step up and pay for the financial loss the owner may have had to bear otherwise. This security allows them to be confident in the service they provide and helps the customer establish a sense of trust.
What Does Garage Keeper Liability Insurance Cover?
When we say vehicle protection, we mean it quite literally. Garage liability insurance will take responsibility for any damage an automobile vehicle has while it is in the custody of the insured business. The policy should ideally have legal, direct, collision, and bailee coverage.
For instance, if a car is parked in a safe parking facility of your auto business while the owners are away on holiday and it catches fire, the garage liability insurance policy you have is entirely responsible for the repair costs.
Types of Garage Keeper Liability Insurance Policies
The type of garage keeper insurance you choose determines the amount of ‘safe space’ your business has when dealing with mishaps. There are three types of garage keeper insurance policies.
Legal liability coverage covers financial costs only if an employee of the company is at fault. E.g., if a technician accidentally caused damage to the vehicle during repair, the insurance provider would cover the cost.
Contrary to this, direct primary coverage covers the entire expense regardless of who is at fault, and it is known to be the safest form of coverage. Lastly, a specific excess coverage insurance policy is only responsible when the damage extends beyond the scope of the standard insurance policy of the car’s owner.
Why Garage Keeper Liability Insurance Matters
For starters, as a company in charge of client automobiles, the danger of accidents or damage is unavoidable. Garage Keeper Liability Insurance provides protection in the event of an occurrence by covering the cost of repairs or replacements for client cars under the care, custody, or control of the company. This coverage includes everything from test drives to car storage.
Second, in the event of theft, vandalism, or fire, this insurance will carry the financial burden, protecting the company from significant damages. Businesses may protect their reputation and develop trust with their consumers by reducing these threats.
Finally, carrying this insurance demonstrates a dedication to customer service and ethical company operations. It illustrates that the company emphasizes the protection of its clients’ assets and accepts responsibility for any unanticipated events.
Navigating Claims and Lawsuits with Confidence
It is critical for companies insured by Garage Keeper Liability Insurance to navigate claims and litigation with confidence. When incidents occur, such as test drive accidents or unforeseen damage to client automobiles, this coverage steps in to give financial assistance. With comprehensive coverage, companies can handle disputes and lawsuits with confidence, knowing they are covered for any legal expenditures and settlement costs. The expert claims handling team at the insurance firm assists businesses through the process, guaranteeing a smooth and speedy conclusion. Having Garage Keeper Liability Insurance allows businesses to concentrate on their main activities without worrying about unanticipated events jeopardizing their reputation or financial security.
Key Features of Garage Keeper Liability Insurance
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Your Comprehensive Auto Business Protection
A garage keeper liability insurance policy is a complete package deal of everything an auto business owner would dream of. From vehicle protection to paying for lawsuits, it covers you.
Regardless of the coverage type, a garage keeper liability policy is designed to give you peace of mind as you invest in your auto business. It will help safeguard you from financial dents and instill a sense of trust in your customers. The amount of money you spend investing in this policy with us is undoubtedly worth it. GGA Insurance Group offers the best of both worlds when it comes to delivering quality and client satisfaction.Speak to our team today for your consultation.
Frequently asked questions
Yes, garage keeper liability insurance does offer coverage for all such cases as theft, setting off a fire, and any damage to the property as long as it is under the custody of the auto business. For instance, if your car is stolen while you give it to an auto business for a car wash, garage keeper liability insurance will cover the loss.
Insured insureds can be added to an insurance policy through negotiation. However, don’t forget to consult your insurance agent about the additions you are considering before officially signing the papers. Insureds may include factors like extending the policy coverage to another connected business etc.
The amount of coverage one needs from a garage keeper liability insurance policy strongly depends on several defining factors. For example, owning a small-scale business with only a few vehicles in your custody won’t need extensive coverage. Nonetheless, make sure it covers the value of the car and the investment you can take on yourself.
The coverage of a garage keeper liability insurance policy does not extend to cases of negligence by the customer, damage to any personal property that is mistakenly left in the car, or if a vehicle part is already defective before the injury. It also does not cover damage caused by natural disasters.
Primarily, you must consider the liability you can afford to take on yourself alongside running a business. In addition to this, it should encompass all unforeseen situations as well as have exhaustive coverage. Lastly, consider whether the policy’s deductibles are easily manageable or negotiable.
The garage keeper’s liability cost is also subject to change depending on several factors. The most evident of these include the type of policy, the coverage, additional insureds, and the value of the vehicles. Contact our experts today to get a proper quote for your business.