Say you run a garage that fixes cars. Thieves break in during the night and take your customer’s car. Without the right commercial insurance, you can be responsible for replacing your customer’s vehicle.
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Garagekeepers insurance is essential whether you run a business like a car wash, garage, auto repair shop, or towing service. [MORE: Best Life Insurance Plans in India 2023]
What Is Garagekeepers Insurance?
When a customer’s automobile is in your company’s care—for example, when it is being parked, repaired, serviced, or stored—garagekeepers insurance protects it. If you run a car wash, for instance, and one of your employees unintentionally rear-ends a pole, garagekeepers insurance would cover the cost of repairing your customer’s vehicle.
Another name for garagekeepers insurance is “storage location insurance.” You will need to pay extra for it because it is often excluded from a normal garage liability policy.
What Does Garagekeepers Insurance Cover?
Garagekeepers insurance covers damage to vehicles you are servicing for problems such as:
- Accidental damage, such as a collision
- Fire
- Severe weather, such as wind or hail
- Theft
- Vandalism
For example, if someone broke into your tow yard and vandalized a car, your garagekeepers insurance can help pay to repair the damage.
Garagekeepers Insurance Coverage Options
You may have several different options to cover your customers’ cars with a garagekeepers insurance policy, including:
Legal Liability
The most typical kind of insurance for garage owners is this one. Your or an employee’s inadvertent damage to a customer’s car, such as a cracked windscreen while performing routine maintenance, is covered by the legal liability of garage owners.
Per-Occurrence Limit
The per-occurrence limit specifies the total amount of protection you’ll get for any one incident involving damage to any vehicle in your care, custody, or control. For instance, it would count as a single event if someone broke into your business and vandalised three automobiles.
The typical maximum per-occurrence limit is $2,500, but you may have other options, depending on your state.
Per-Vehicle Deductible
The amount that is subtracted from your insurance claim payment for each damaged or stolen car is known as the per-vehicle deductible.
For instance, the cost of repairing each vehicle will be reduced by $500 if you have a $500 per vehicle deductible and three of the automobiles in your store are vandalised. Here’s how that may appear:
Direct Primary
Direct primary covers a customer’s car if it is stolen or damaged, no matter who is at fault for the accident.
Direct Excess
A supplementary coverage, direct excess begins to pay after your primary coverage.
For instance, if a customer’s automobile is damaged in a fire in your store, the claim would be covered by the customer’s comprehensive car insurance (primary), and your direct excess coverage (secondary) would pay any excess not covered by their insurance.
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