Garage Keepers Insurance
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Do you have a service station, repair shop, or body shop? Do you work on customer vehicles? Imagine if someone broke into your shop tonight and vandalized your customers' cars. What would you do?
What is garage keepers insurance?
Simply put, Garage Keepers Insurance or Garagekeepers Legal Liability coverage is available for businesses that have service repair stations, body shops, or towing services.
It's a form of bailee liability whose purpose is to protect your client's car, van, truck or motorcycle while you have it in your garage for parking, storing, or performing a service. Coverage typically protects the customer's vehicle in case of fire, theft, vandalism, or collision.
That's why you must keep the client's keys in a lock box so that you don't give the keys to the wrong driver! Make sure your parking lots have plenty of exterior lighting and either fences or exit chains to prevent vehicles from being stolen after hours.
Garagekeepers coverage offers three options:
- Legal Liability covers mechanic's negligence: This means if your mechanic wrecks the car or you forgot to lock the car and it's vandalized, then you are covered.
- Direct Primary: This means your client's vehicle is protected, whether the damage is due to mechanic's negligence, theft that is not attributed to negligence, or extreme weather loss.
- Direct Excess: This coverage is basically the same as "direct primary" coverage. It protects the client's vehicle no matter who is at fault. The difference is that it is to be paid only in excess of any amount collectible under the owner’s policy if the insured cannot be held legally liable.
What does a garage keepers insurance policy cover?
It's always important to read through the policy carefully to see what is and is not covered. Check with our agents for more details on coverage.
What does garage keepers insurance not cover? Exclusions include:
- Any contractual obligations that the dealer or service station has
- Loss to stereo equipment that is not permanently installed
- Loss of CD's and DVD's
- Loss of CB’s, mobile radios, telephones or scanners unless they are permanently installed in the dash or console
- Radar detection equipment.
- If the vehicle is stolen by the insured
- Any defective parts
- Faulty work
How to figure how much garage keepers insurance you will need:
A: What is the average cost of the vehicles that you work on?
B: What is the average number of vehicles that you have in your shop at any given time?
Multiply A x B to get your total coverage that you need. So, if the average car is $25,000 and you have 7 cars on hand at any given time, then you will need at least a $175,000 garage keepers insurance policy.