This insurance covers the legal liability of auto dealers, repair shops, service stations and garages. Damage to property and bodily injury to third parties might be costly to cater for out of your pocket. However, you can take out a garage liability insurance cover to protect you from such loss of damage or injury. The package of coverage options under this insurance cover, include the following:
• Damage of property and injury to persons – It will compensate for injuries and damage to property due to operations related to the garage. This I the most common coverage option for this insurance policy.
• Garage keepers cover – It covers or caters for loss due to the damage of autos and property of the customers. It supplements coverage that is excluded from the damage of property and bodily injury to persons.
• Garage owned automobiles – It compensates for the damage of garage owned automobiles.
• Owned automobiles – It covers risks for claims which arise from ownership.
• Hired automobiles – It covers vehicles that an employee or the owner, borrows or rents for business operations.
• Non-owned automobiles – It covers employees, partners and household members, who are using the vehicle for business or personal purposes.
• Temporary substitute automobiles – it offers protection when using another vehicle temporarily, as the owned vehicle is disabled.
• Newly acquired automobiles – This covers newly purchased vehicles or additional vehicles in a particular period.
There are, however, optional covers which will give your business the needed full coverage. They include the following:
Broadened garage liability cover
This covers work in your auto shop in the case where the work causes an accident or physical damage to the vehicle of your customer. The insurance policy will pay for any losses that may arise.
Customer automobile actual loss sustained
This takes into account the actual loss on the damage of the vehicle of a customer without compensation being limited by the insurance cover. You can take out this insurance option together with business property insurance for sufficient coverage of your business.
Garage liability insurance policy
It covers legal liability of both franchised and non-franchised truck, motorcycle, trailer and automobile dealers. It covers bodily harm and damage to property due to operations related to the business. The insurance policy will state who is to be insured and the provisions of the limit, the policy will cover.