Insurance specialist
Garage and car small businesses such as auto mechanics, car dealers, and tow truck services have more hazardous risks than most other small businesses. For instance, a customer might slip in the oil that dropped from a car and translate it into a lawsuit. A standard general liability insurance policy won’t be enough alone to cover you for the risks that come with car service businesses. That is why you need garage liability insurance. In this article, we’ll discuss what is garage liability insurance, coverage and cost etc.
Garage Liability Insurance: What is it?
Applicable in the automotive industry, garage insurance is a type of specialized commercial coverage. Those businesses protected in this way can include car dealers, body shops, repair garages, and parking garages. This insurance guarantees that if these businesses face lawsuits from property damage. Or bodily injury claims amounting to real money, even ruin, you may afford having to pick up the tab yourself.
As a practical example, suppose someone slips and falls in a garage after spilling engine oil all over the floor. Result: broken bone(s). Or perhaps one of the mechanics botches a job by accident, damaging the customer’s expensive stereo system. In these cases, garage insurance is your mainstay. It may help pay for the injured customer’s medical bills or help fix what’s wrong with that damaged sound system.
What Does Garage Liability Insurance Cover?
Specialized commercial general liability insurance and garage liability insurance protect companies in the automotive sector from financial liabilities caused by bodily injury and property damage claims against them. Imagine: If one of your customers slips on an oily patch in your auto repair shop and breaks his arm, insurance would pay for their medical bills. This insurance typically covers the following:
Customer bodily injury: This is mandatory insurance. Suppose a customer is injured on your premises due to negligence (e.g., slipping on a wet floor, getting caught in faulty equipment). In that case, the garage liability policy will pick up the tab for their medical treatment and make up for her lost wages.
Customer property damage: if a mechanic accidentally damages a customer’s vehicle while working on it, insurance steps in to cover the cost of repair or replacement.
Products and completed operations coverage that applies to troubles after performing services. For instance, if a flawed repair subsequently leads to an accident, garage insurance policy will help cover your expenses.
Legal expenses: If a customer sues your business due to an event covered by your garage policy, that coverage will pay money to hire lawyers to defend you. This can be crucial for businesses because in court battles, even though they might be victorious and innocent of all charges pressed against them. There’s no telling how costly such proceedings may prove until after the fact when costs aggregate after a long and expensive legal do.
Garage insurance offers a necessary safety net to businesses working on or storing vehicles, shielding them from the burden of large lawsuits and sudden unforeseen mishaps.
What Garage Liability Insurance Doesn’t Cover?
As useful as garage insurance policy may be, it does not cover everything. Here, instead, are some telling examples:
Customer’s Vehicle: Many customers are amaze to hear that charges are not liable. They could lose or damage a customer’s vehicle, and you, as the garage owner, must bear the cost. Garage ownership warranty insurance (GOLI) is necessary to cover these liabilities.
Business property: The building, tools, and equipment are unprotected if damaged or stolen. This is covered under commercial property insurance, which may also come as part of a business owner’s package (BOP).
Employee Injuries: If the employee is injured on duty, the garage keeper’s policy does not provide medical care or wages lost due to unemployment. That’s what workers’ compensation is for, and every state requires it to be carried out by employers.
Who Needs Garage Liability Insurance?
Any business or service that uses the general public and vehicle transportation must have Garage Liability Insurance. This applies to service stations, machinery manufacturers, and hotels offering valet parking services. Garage liability insurance typically applies to any businesses in contact with general partners. Here is a partial list of such businesses:
Auto Repair Shops and Body Shops: These businesses are ripe for garage insurance policy covering accidents during repair. With this kind of insurance, a business will get coverage if a customer is get injury or his car have an accident.
Car Dealerships: The glossy floors of a showroom or slightly muffed test drive might cause physical catastrophe for customers. Garage liability insurance protects dealerships from the costly consequences of such incidents.
Tow Truck Services and Impound Lots: Towing and storing cars is a necessary act of danger. Garage liability insurance protects customers from lawsuits in case of destruction or injury and includes commercial liability insurance.
Parking Garages and Valet Services: A simple bump in a parking garage can mean big repair bills. Garage liability insurance gives parking garages and valet services peace of mind. Because these policies will take care of their property damage incurred through workmen’s comp claims (on the job), cases by people pretending to be employees but who insist they aren’t covered under this or that regulation. The hourly rental of a garage and all of its items is typically usually bought into great detail when workers are hired for higher risks that might happen.
Other Vehicle-Related Businesses: This includes operations such as service stations, car washes, and auto parts stores. insurance can assist with the financial burden after damage occurs. If they do any accidental harm to customer property and people are around to witness it.
Cost
The cost of garage liability insurance depends on many things but generally ranges from $1150 to $2300 per year. Here are some of the factors that affect costs:
- Examples of work and companies
- The choice of vehicles you work with and estimated values
- Your claims history
- How much coverage do you need?
- Your record score as a member
- Your deductible
Generally, getting quotes for this insurance from several different insurers is a good idea to calculate how rates might vary.
Get Best Small Business Insurance Quote
We suggest every business to carry insurance. It gives them protection against any mishap or adventure. So here are best small business insurance, you can get quote easily.
Conclusion
To sum up, a garage liability insurance policy covers areas that a normal general liability cannot handle and is custom-built to protect automotive businesses from the financial risks of lawsuits. It includes things like injury to a customer, costs of litigation, and even compensation damages for property damaged by you. That is why you need this type of coverage if your company’s line of business is to move vehicles. The net not only can save you from bankruptcy through some unforeseen error or lawsuit.
