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Garage liability insurance is a type of homeowners’ insurance which covers the contents in your garage, but not the structure. The coverage usually applies to cars and motorcycles, as well as boats and RVs. It’s typically limited to $1 million or less. This article will provide you with information about what this policy provides for your vehicle(s), different types of garages that may be covered by it, and how much it can cost you each year.,
Garage liability insurance is a type of general liability insurance that covers the property and assets of a business. General liability insurance covers injuries to people, accidents, or damage to other property. This article will discuss the differences between garage liability insurance and general liability insurance. Read more in detail here: garage liability insurance vs general liability.
Auto repair companies, dealerships, tow truck drivers, and Stations of service all need garage liability insurance. It covers personal harm and property damage to third parties caused by garage activities, as well as automobiles in the company’s care, custody, or control. Annual garage liability insurance costs normally range from $1,000 to $2,000 per year.
With online rates and professionals accessible to give customized advise and ensure you are appropriately insured, providers like CoverWallet make buying garage liability insurance for your small company simple. Fill out a quick, no-obligation online form to be insured in minutes.
Go to CoverWallet.com.
What is Garage Liability Insurance and How Does It Work?
Garage liability insurance covers claims that are comparable to general liability insurance, including as injuries and property damage caused by your company activities to non-employees. Garage liability, on the other hand, covers accidents that occur as a result of garage activities, such as a technician test driving a customer’s automobile. If a mechanic collides with another car, garage responsibility covers the damage. The customer’s vehicle, unfortunately, is not covered. Garagekeepers coverage is required for this.
Insurers that provide garage insurance may frequently add coverage from general liability, such as personal and advertising harm, to the policy. This may be a practical approach for automotive company owners to have all of their basic risks covered under one policy.
What Is Covered by Garage Liability Insurance?
Allegations made by non-employees that your garage activities, whether required or incidental to your garage company, caused them injury are covered by garage liability insurance. Garage liability insurance, for example, is usually triggered by:
- Medical costs for a vendor who broke her leg while falling into the service bay.
- Repair expenses for a client whose laptop was smashed by a hydraulic lift.
- Products and completed operations: Medical and repair expenditures incurred by a consumer when a technician failed to tighten the lug nuts while replacing her tire.
This coverage applies to the named insured, as well as the named insured’s employees, partners, directors, and shareholders, as long as they are operating within the extent of their responsibilities.
What Doesn’t Garage Liability Insurance Cover?
The exclusion for damage to cars in the garage’s care, custody, or control is perhaps the most crucial in garage insurance. This implies that a customer’s claim that his car was damaged or stolen while it was being stored at your firm would be denied. Remember the mechanic who caused an accident while test driving a customer’s vehicle? Garage liability insurance normally does not cover damages to the customer’s automobile since the technician was in charge of it.
The following are some more popular garage insurance exclusions:
- Employees’ injuries
- Pollution causes harm and damage.
- The cost of a product recall
- Racing or destruction actions that are professional or coordinated
Garagekeepers Coverage vs. Garage Liability Insurance
Garagekeepers insurance is an optional policy for companies that store their customers’ cars on their properties. It basically covers what garage liability doesn’t: cars in the business’s care, custody, or control, by paying for repairs when they’re damaged, lost, or stolen.
Damage to a garage is covered by garagekeepers insurance.
- Theft
- Fire
- Vandalism
- Unprecedented weather
- Collision
Garagekeepers’ liability insurance often only covers damage to or theft of the car, not its contents. However, endorsements may be added to cover anything left in the automobile.
Garage Liability Insurance: Who Needs It?
Garage liability insurance, sometimes known as vehicle repair shop insurance, covers more than just repair shops. The coverage is suitable for any automotive company since it covers damages and injuries arising from garage activities, regardless of whether or not a car is involved.
The following are examples of small enterprises that need garage liability insurance:
- Repair shops for automobiles
- Repair shops for automobiles
- Stations of service
- Installers of auto glass
- Centers for emission testing
- Lube and oil change shops
- Detailers
- Tow truck drivers
- Garages for parking
- Automobile dealerships
Garage liability insurance is required for any company that works on or with automobiles. Some companies are obliged to have liability insurance in order to get a license, but even if it isn’t needed, garage liability insurance is a wise investment to protect against mishaps that turn into financial catastrophes.
Additional Garage Insurance Options
Every small firm is vulnerable to a variety of threats. Any firm in the automotive sector, at the absolute least, should have garage liability insurance, as well as garagekeepers coverage if clients leave automobiles with them. However, companies may encounter risks such as property damage and employee injury, which need the purchase of additional insurance policies such as:
- Workers’ compensation insurance covers your workers’ medical costs and lost wages if they are hurt on the job, such as when a mechanic loses a finger in a winch.
- When you or your workers cause an accident, commercial vehicle insurance covers third-party property damage and physical harm.
- Business umbrella insurance: Extends the limitations of underlying liability policies, such as garage liability and commercial car; typically a more cost-effective solution than buying extra liability coverage.
Costs of Garage Insurance
The average cost of garage liability insurance is between $1,000 and $3,500 per year. This is higher than general liability, but that’s because garage insurance protects firms that are exposed to much greater danger than the average. Furthermore, garage owners often need additional business insurance coverage such as garagekeepers insurance and workers’ compensation. Your overall yearly expenditures might rise by $2,000 to $6,000 as a result of this.
Typical Costs of Garage Insurance & Deductible by Policy
The cost of garage insurance is influenced by a variety of variables, including your location, unique activities, company income, and the number of workers. Look for a provider that may add garage liability and garagekeepers insurance to a business owner’s policy to keep expenses down (BOP). For small company owners, BOPs often include general liability and commercial property, so adding garage liability means automotive firms may acquire their basic coverage from a single provider.
The Best Garage Liability Insurance Companies
*A quotation from Liberty Mutual Insurance Company is a mutual insurance company that was given by Commercialinsurance.NET, one of our partners.
Because garage general liability is not offered by every insurance provider, firms in the automobile sector may have the greatest results turning to a top business insurance broker. They may compare bids from several companies that issue garage liability coverage this way.
CoverWallet
Garage owners and vehicle companies of all kinds will appreciate CoverWallet. CoverWallet’s insurance partners can handle the huge cash worth of a thousand automobiles on a lot, as well as a customer’s injuries after falling in an oil slick. Furthermore, CoverWallet allows garage owners to compare plans online, allowing them to see how much each insurance provider costs and compare the cost to the policy conditions.
Farmers
Farmers is a national carrier specializing in small business insurance, and it is a good option for Repair shops for automobiles with multiple locations. It can provide coverage for cars stored on-premises or being worked on at another location. Agents at Farmers are available for policyholders seeking better solutions for safety and loss mitigation, which helps keep premiums low.
CyberPolicy
Garage owners that need to cover equipment damage, botched repairs, and even personal injury may benefit from CyberPolicy. CyberPolicy, as an internet broker, can link you with a range of insurance providers that can provide coverage to cover any risk. Their online application is quick and simple, but you can also call and talk with a specialist who will assist you with obtaining garage liability insurance as well as any other coverage you may want.
Commercial Advancement
While Commercial Advancement is a leading business auto insurance provider, the carrier also offers several key coverages for tow and impound lots, including garagekeepers legal liability, on-hook towing, and garage insurance. Additionally, tow lot owners who get commercial auto and have general liability or a BOP can earn a discount of up to 15% even if their commercial auto isn’t written through Commercial Advancement.
Liberty Mutual Insurance Company is a mutual insurance company that
Liberty Mutual Insurance Company is a mutual insurance company that* is a well-known brand that offers garage insurance policies to auto dismantlers, salvage yards, and “U-Pull-It” companies. The carrier partners with Watson Insurance Agency to bring these hard-to-cover business owners garage liability, commercial auto, general liability, property, and garagekeepers insurance. Moreover, policyholders can take advantage of safety resources, including access to a safety consultant, to help minimize claims and keep costs down.
*A quotation from Liberty Mutual Insurance Company is a mutual insurance company that was given by Commercialinsurance.NET, one of our partners.
Garage Insurance is a kind of insurance that protects Most Commonly Asked Questions (FAQs)
Purchasing company insurance is not always simple, particularly if you don’t know what to look for. Answers to some of the most frequently asked questions concerning garage liability insurance may be found here.
Is a technician responsible for damages caused by repairs?
Mechanics are accountable for harm caused by improperly performed repairs. Auto repair firms are required to carry out their responsibilities properly in order for automobiles to be functional and safe. Garage liability insurance will most likely cover repair expenses and medical claims if improper construction causes property damage or injury. It does not, however, cover the labor itself.
Let’s assume a technician repairs a tire incorrectly. The owner is driving the automobile when it blows out, causing him to collide with another vehicle. Garage responsibility often covers the owner’s medical fees as well as the other car’s repairs. The technician, on the other hand, is in charge of changing the customer’s tire.
What happens if your automobile is damaged by a garage?
A automobile that is under the care, custody, and control of an auto shop is the auto shop’s duty. Garages may get a garage liability insurance that includes garagekeepers coverage to cover claims for damage to automobiles in their care. Losses due to hazards such as theft, vandalism, or fire are covered under these insurance.
Is it true that vehicle dealers are covered by insurance?
Commercial property, general liability, and workers’ compensation are common insurance requirements for auto dealers. Most, on the other hand, demand garage liability and garagekeepers insurance. Wind and hail covering may be required for dealers with open lots.
Conclusion
Garage liability insurance is a must-have coverage for automotive firms because it covers them in the event that someone claims their garage activities caused injury or property damage. However, business owners, such as garagekeepers, often want supplemental coverage to cover damage to clients’ automobiles left in their care.
With its garage business owner’s insurance, CoverWallet makes it simple to combine these two important policies into one. Garage owners may acquire a fair quote in five minutes that covers the most important risks and includes business interruption coverage, all in one simple policy.
Go to CoverWallet.com.
Garage liability insurance is a type of insurance that covers your vehicles and personal property in the event of an accident. Here are some things to consider when choosing garage liability insurance in Florida. Reference: garage liability insurance florida.
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