Garage insurance is a special policy aimed at covering businesses in the automotive industry. It is a crucial requirement for automobile dealers, service stations, repair and customization shop owners, and parking lots operators. It makes up for the coverage for damages to third-party vehicles, which is usually not covered in the standard commercial general liability policy.
What Does Garage Insurance Cover?
This specialized policy specifically covers your business against claims from third-party injuries and property damages resulting from accidents during garage business activities. You can choose to set your plan at basic coverage or enhance it with additional policy for better and broader coverage.
Basic Garage Insurance Coverage
Basic coverage covers lawsuits if your business is sued for the cost of treatment for bodily injury sustained on your business premises. For instance, if a customer, vendors or bystander slips and falls at your shop. It may also cover general liabilities from business activities, such as discrimination lawsuits from an employee. It also includes dishonesty coverage, which covers you against theft or vandalism done by an employee to a customer’s vehicle.
Additional Garage Insurance Coverage
You may get additional coverage which covers damages to a customer’s caused by a product sold or manufactured by your shop.
Is Garage Insurance the Same as Garage Keepers Insurance?
Both are similar kinds of policies and crucial to the automotive industry, but with some differences in the area of coverage. While garage insurance covers policyholder’s business operations and autos, the other is for damage to a customer’s vehicle. Garage keepers insurance covers incidents that occur when working on a customer’s vehicles, including damages not caused by you or your employees, such as fire, theft, extreme weather, collision and vandalism.
Which Should I Choose?
You can get any or both policies from the same insurer, depending on your services. For every automotive business, garage insurance is a must. And if you keep customers’ vehicles in your shop, either for short-term or long-term repairs or services, you should also consider complementing your general garage insurance with garage keepers policy.
How to Get the Best Garage Insurance for Your Business
You can get quality coverage and save money on your policy if you deal with the right insurer. Try to compare quotes from different insurance companies or agents and buy from the one with the best offer. The insurance amount will basically depend on your company’s annual revenue, number of employees, type of coverage and limits of coverage chosen.