If you have a parking lot, you’ve got a fair amount of risk. While no one wants to consider the worst-case scenario or think about how a disaster could befall them, it’s important to understand the risks you face as the owner or operator of a parking lot or garage so that you can get the insurance coverage you need to protect yourself from risk. We’re going to go over four different coverages you can consider for your parking garage and explain how each can protect you.
Insurance coverages for a parking garage.
1. General liability insurance.
General liability insurance is an extremely important coverage for businesses to consider. If you run a parking lot or a parking garage, a lot of people are coming and going to and from your premises. And since you’re the person responsible for the premises, you could be sued for property damage or bodily injury if someone feels your business is the cause.
Imagine if someone just parked their car in your lot. They’re walking across your lot when they realize they left their coat in the car. They jog back to get it, and they trip over an uneven section of asphalt. They go flying and land hard, catching their fall with their hands. They break both wrists. Since they feel that you’re liable for their injury, they decide to sue you.
General liability can help you defend against this kind of claim. It can help you cover legal expenses, settlements, and court-ordered awards or judgements. Lawsuits are common in today’s society, where people sue for reasons big and small. And lawsuits can get pricey very quickly – which is why general liability is an important coverage for you as the operator of a parking garage to think about.
2. Workers’ compensation.
You might employ attendants, valets, or other workers for your parking garage. Workers’ compensation insurance can help provide for and protect your employees if they get hurt on the job. Depending on your state, you might be required to carry workers’ comp insurance when you have a certain number of employees.
Workers’ comp can protect your employees by covering their medical bills and a portion of their lost wages if they’re injured while on the job. That way your employee gets the medical attention they need to heal and recover from their injury. They can take the time they need to focus on getting better instead of worrying about how they’re going to cover their living expenses.
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Let’s say that you have a parking garage with multiple levels. One of your employees has to go to one of the upper levels, and they take the stairs. On the way there, they lose their balance and slip, falling down the stairs. They’re bruised and have broken bones – in short, they need medical attention and time off to get better. Workers’ comp could help cover their medical bills and give them back a portion of the wages they lose while unable to work.
3. Garagekeepers insurance.
Your parking lot could be considered to have care, custody, and control of the cars that your customers leave at your lot. And if you have care, custody, and control of your customers’ vehicles, you could be liable for damage caused to the cars while they’re parked in your lot or are otherwise your responsibility.
Garagekeepers insurance can help you if one of your customer’s cars is damaged while it’s in your care, custody, and control. Depending on your policy, different losses could be covered. It’s important to understand what kind of garagekeepers insurance you have and what losses it will cover.
- Garagekeepers legal liability means that you have to be found legally responsible for the damage in order for it to be covered.
- Direct primary coverage means that you don’t have to be legally responsible for a loss in order for it to be covered.
- Direct excess coverage means that your garagekeepers will kick in after the car owner’s own insurance has done its part.
To give an example of garagekeepers insurance in action, we’re going to say that you have a parking lot that offers valet parking. You have a bunch of eager young drivers who are quick on their feet and want to get the job done fast so they can run back for the next. One of your valet drivers takes the keys of a really nice SUV and sets off to park the car. To make it easier to get out of the spot, they decide to back the car into the spot. But they underestimate how big the SUV is and they’re going too fast, and they crash the back of the car into the concrete barrier behind it. There’s a good deal of damage to the SUV from the accident.
Other coverages you can consider for your parking lot.
Of course, these aren’t the only coverages you can consider for your parking lot or garage, and these aren’t the only coverages you might need to cover your risks. The following are other insurance coverages you can consider for your parking lot.
- Employee dishonesty
- Business income
- Hired and non-owned auto
We know that the world of insurance can seem confusing and overwhelming at times. That’s why we’re here to help with your insurance needs. We can help you get insurance for your parking garage so that you’re protected from whatever mishaps and calamities life can throw your way. Get started with quotes by filling out our online form or giving us a call today.