Do you run a mechanic shop, auto body shop, or a car dealership? Then you definitely need to carry garage liability insurance.
What is Garage Liability Insurance?
Garage liability is the type of insurance policy that auto repair shops, auto body shops, parking garages and car dealerships require.
Garage liability insurance is a specific type of general liability insurance that covers third party bodily injury and property damage.
Why Do You Need Garage Liability Insurance?
If you own any kind of business related to operating, driving, servicing, selling, or transporting of automobiles, then you need garage liability insurance in order to cover any third party bodily injury harm that occurs as well as any damage to vehicles left for repair.
What Type(s) of Garage Liability Insurance Do You Need?
There are various types of garage liability insurance depending on the type of garage or auto dealership that you own.
How Do You Choose the Right Type of Garage Liability Insurance?
The type of garage insurance that you need to carry depends on the type of mechanic or automotive related business that you have.
Garage liability insurance for auto dealers is also different due to the cars held for sale that most car dealers tend to keep on hand, and the fact that multiple people – both employees and customers – often drive that inventory.
Your insurance agent can help you sort out the type of garage liability insurance that you need to carry in order to protect your business and finances.
What is the Difference Between Garage Liability Insurance and Garage Keepers’ Insurance?
Although the names are very similar, garage liability insurance coverage and garagekeepers’ insurance coverage are not exactly the same; rather, they are two complementary types of insurance.
Garage liability insurance covers the insured’s liability for operations and test driving, and completed repairs of the vehicles, while garagekeepers’ covers property damage and theft of customer’s vehicles that left for repair.
Garagekeepers’ insurance is generally available in two variations.
The most common one is garagekeepers’ legal liability, which covers customer vehicle damage due to the insured party’s negligence (think a mechanic wrecking a car while test driving or a vehicle being stolen because it was left unlocked and unattended).
Direct primary garagekeepers’ insurance is more comprehensive because it covers customer vehicles regardless of liability.
What Other Types of Insurance Are Related to Garage Liability Insurance?
Garage liability insurance is a subtype of general liability insurance.
Property insurance is often bundled and recommended alongside garage liability insurance, as well as Workers Compensation.
Ready to learn more about garage liability insurance? Contact ASCO Insurance Services to learn about your options in Illinois.