Garage Liability Insurance, Here are the 6 Things You Do Not Know!

Compared to most small businesses, garage- and car-based enterprises including auto repair shops, dealerships, and tow truck services face higher hazards. For instance, a client who falls in motor oil leakage can suffer harm and file a lawsuit against your company.

Your risks associated with operating a car service business may not be covered by a typical general liability insurance policy. To be adequately covered, you must obtain garage liability insurance.

What Is Garage Liability Insurance?

For automobile repair and garage-based enterprises, garage liability insurance is a sort of small business insurance. It also goes by the name “garage insurance,” and it aids in covering accidental losses brought on by dangerous businesses like a garage or repair shop.

What Does Garage Liability Insurance Cover?

Injury and property damage to others that is unintentionally caused is covered by garage liability insurance. These sections make up garage liability insurance coverage.

Injuries

A customer who slips and falls in your garage is one example of an accident covered by this section of your garage liability insurance. Your workers compensation insurance covers employee injuries, which are excluded from this. If you are sued due to an injury to a non-employee, injury liability insurance also covers your legal fees, verdicts, and settlements.

Property Damage

This section of a garage liability insurance policy protects third-party property damage brought on unintentionally. Similar to liability insurance for injuries, it covers your legal fees, court awards, and settlements in the event that you are sued for property damage. The garagekeepers’ insurance would cover damage to a customer’s vehicle, which is not covered by this.

This page will refresh every 30 seconds.

For example, if you are test driving a customer’s car and crash into someone’s fence, this pays to repair their fence.

Products-Completed Operations Coverage

This covers accidents and property damage that occur after the job has been finished as a result of issues like poor repair, malfunctioning components, or other liability claims involving products or services you provided.

For instance, products-completed operations insurance would cover repairs if you unintentionally used the incorrect part when fixing an automobile and it was damaged.

What’s Not Included in a Garage Liability Insurance Policy?

Here’s what’s typically not covered in a garage liability policy:

Business property. Commercial property insurance will cover damage to your business property (such as tools and computer equipment) and your building.

Customer property. Garage liability insurance does not cover theft or damage to customers’ cars while they are in your care. For this kind of damage, you’ll need a separate garagekeepers insurance coverage.

Damage to your work vehicles. You must submit a claim under the collision or comprehensive clause of your commercial auto insurance policy if your company vehicles are stolen or damaged.

Employee injuries and illness. Your workers compensation insurance will pay the medical bills, missed income, and other related costs if one of your employees gets sick or gets injured at work.

Intentional acts. You are not covered if you knowingly cause property damage or injuries. However, if someone else committed the vandalism, your commercial property insurance would cover it.

Who Needs Garage Liability Insurance?

Small businesses that are in the auto industry generally need garage liability insurance, such as:

• Auto dealerships
• Auto detailers
• Auto glass installers
• Auto repair shops
• Auto service stations
• Body shops
• Detailers
• Emissions testing centers
• Muffler shops
• Oil change and lube shops
• Parking garages
• Tire and battery repair facilities
• Towing or impound lots

How Much Does Garage Liability Insurance Cost?

The cost of garage liability insurance depends on several factors, such as:

• Your business type
• Your business location
• How long you’ve been in business
• Your business’s claims history
• Your coverage and deductible amount

What is the Difference Between General Liability and Garage Liability Insurance?

Here are the key differences between general liability insurance and garage liability insurance.

General Liability Insurance

General liability insurance protects against bodily harm and property damage that is unintentionally inflicted onto third parties, such as when a client’s home is mistakenly damaged. It also includes allegations of copyright infringement and damage to reputation.

But hazardous dangers that exist in workplaces like a garage or auto service shop are frequently not covered by general liability insurance. A general liability insurance, for instance, might not pay for medical expenses if a customer slips in motor oil that has spilt in your garage.

Garage Liability Insurance

In the same way that general liability insurance covers accidental injuries and property damage to others, garage liability insurance also covers hazardous hazards unique to the vehicle service industry.

A garage liability insurance coverage, for instance, would pay the customer’s medical claims if they slide in motor oil spilled in your garage.

Garage Liability Insurance vs. Garagekeepers Coverage

Problems like unintentional injury and property damage to others are covered by garage liability insurance. However, it does not apply to a customer’s vehicle while it is in your possession.

garagkeeper insurance

When a customer’s car is under your care, it is covered. For instance, your garagekeepers insurance may be able to pay the repair costs if one of your customers’ cars is vandalised while parked in your parking garage.

Garagekeepers insurance covers damage to customers’ cars for problems such as:

• Accidental damage
• Fire
• Severe weather such as hail or wind
• Theft
• Vandalism