Garage Liability Insurance

What is Garage Liability Insurance?

The general garage coverage will not cover your property and vehicles. Unlike the standard policy, garage liability insurance gives dealers and automobile shop owners a peace of mind by covering all the vehicles, people, and property.

The policy covers the accidents at the garage, service stations, and automobile shops. For instance, if an employee slips and injures his Leg at the shop, then the insurance policy will cover all the medical expenses of the employee. Some policies also provide coverage for fraud and dishonesty. For example, the garage liability insurance policy liability can cover the loss a shop owner has to bear because of a fraud employee, who stole the valuable business equipment and vehicles. This policy is used to cover both physical injuries and property damage.

Understanding Garage Liability

Garage liability insurance is used to cover regular business operations at the workshop. However, it works only when the mishaps occur due to garage operations. For instance, injury to an employee will not be covered if he gets injured in the non-working hours. It is important for business owners to go over all the critical terms of the policy to know how it will add to the garage keeper’s coverage. Remember that Garage liability insurance is not used as a replacement for general liability coverage.

You could also buy additional coverage, which covers the loss you bear because of the installation of the faulty equipment on your client’s vehicle or selling defected parts. Make sure that this insurance policy is not designed for the policyholder or the shop owner. So, do not expect the policy to offer you coverage for personal or commercial buildings and other properties. Garage insurance policy has different coverage amounts. Make sure you check the maximum coverage the policy offers and choose the product that fits your preference.

Garage Liability Insurance and Garage Keeper’s Coverage

It is important to note that garage liability insurance and garage keepers’ coverage are different. The latter offers coverage for the customer’s vehicles as long as they are handled by the shop owner. This means if any damage occurs to the vehicle on-site, then the general liability will compensate for the loss. If you have more than one garage or service station in the same or different cities, then you are going to need two policies (or more, depending on the number of shops you have). The policy also covers the theft and destruction caused by a fraud employee.

Garage liability insurance, on the other hand, is confined to the day-to-day business operations at the workshop, garage, service station, and an automobile repair and maintenance store. This policy is not mandatory, but highly recommended for those who need added protection. General liability is a must for all garage and shop owners. You could increase the coverage options by Investing in the garage insurance policy.