Garage Keepers Insurance: What You Need to Know
If your business involves operating a garage or auto service center where you store customers’ vehicles, Garage Keepers Insurance is an essential coverage to consider. This insurance provides protection for damages or losses that may occur to customers’ vehicles while under your care. Here’s what you need to know about Garage Keepers Insurance:
What is Garage Keepers Insurance?
Garage Keepers Insurance is a specialized form of insurance designed for businesses that store or operate on customers’ vehicles. It provides coverage for damages or losses to customers’ vehicles while they are in your care, custody, or control.
Types of Garage Keepers Coverage
Garage Keepers Insurance typically offers three types of coverage:
- Legal Liability Coverage: This coverage protects you if you are legally liable for damages to a customer’s vehicle while it is in your care.
- Direct Primary Coverage: Direct Primary Coverage pays for damages to a customer’s vehicle regardless of who is at fault, providing broader protection compared to legal liability coverage.
- Bailee Coverage: Bailee Coverage protects you against damages to customers’ vehicles due to fire, theft, vandalism, or other specified perils.
Who Needs Garage Keepers Insurance?
If your business involves the storage, repair, or servicing of customers’ vehicles, Garage Keepers Insurance is highly recommended. This includes businesses such as auto repair shops, body shops, car dealerships, towing companies, and parking garages. It provides protection against potential claims and legal liability resulting from damages or losses to customers’ vehicles while under your care.
Factors to Consider
When obtaining Garage Keepers Insurance, consider the following factors:
- Policy Limits: Determine the appropriate policy limits based on the value of the vehicles stored or operated on and the potential risks involved.
- Deductibles: Understand the deductibles associated with the coverage and choose a deductible amount that aligns with your risk tolerance and financial capabilities.
- Specific Exclusions: Review the policy’s specific exclusions to ensure you understand what is not covered under the insurance.
- Additional Coverage: Evaluate if you need any additional coverage options, such as general liability insurance, property insurance, or commercial auto insurance, to provide comprehensive protection for your business.
Garage Keepers Insurance is a crucial coverage for businesses that store or operate on customers’ vehicles. It provides financial protection against damages or losses and helps mitigate potential liability risks. Consult with an experienced insurance professional to determine the appropriate Garage Keepers Insurance coverage for your specific business needs.