Auto repair shops and dealers have unique exposures requiring specialized coverage.
Holden Insurance offers a policy that covers many of the risks auto dealers and auto repair shops face, Garage Liability Insurance. The coverage provided in a garage liability policy is somewhat equivalent of combining business auto coverage and general liability coverage, including the products and completed operations, onto one form. The garage liability coverage is not as broad as the commercial general liability. For example it does not cover “personal injury” or “advertising injury”. These coverages can be added by endorsement to broaden your liability insurance coverage. If you have employees, a separate workers compensation policy will be required as it is excluded from garage liability insurance.
Garage liability insurance covers property damage and bodily injury resulting from the operations of the garage. You can purchase a separate insurance contract in the form of Garagekeepers Legal Liability to cover a customer’s auto left in your care, custody or control. This is defined in the policy as “while the insured is attending, servicing, repairing, parking or storing it in your garage operations.”. The Garagekeepers covers accidents and damages to cars that are brought into the shop.
As explained above, there is a distinct difference between garage liability insurance and garagekeepers coverage. If you own a garage, you most likely require both coverages to properly insure your loss exposures. Dealership and repair shop owners should consider incorporating their business to limit their exposure to personal liability. A loss that exceeds the garage liability insurance coverage could cost you out-of-pocket money.
We understand that you may have questions about the options available. We invite you to speak with one of our commercial insurance specialists. They can walk you through the insurance shopping process so you can make an informed decision about the garage liability insurance coverage that is right for your Vermont company. Request a free insurance cost review today!