Garage Keepers Legal Liability Coverage

Coverage provided under a garage policy for auto and trailer dealers particularly those dealers that maintain a service department or body shop for liability exposures concerning damage to a customer s auto or auto equipment that has been left in the dealer s care for service or repair.

Garage keepers legal liability coverage.

Garagekeepers liability coverage is an insurance policy that covers different types of risks that are likely to affect a customer s car while it s in a car shop. For other types of auto related businesses such coverage is available under the garagekeepers coverage endorsement ca 99 37. For instance if a worker is parking a customer s car and hits another vehicle in the process the policy covers the damage to the vehicle that is hit. It is a unique type of policy and many seasoned professional insurance agents don t really understand it well.

For example if a mechanic forgets to set a parking brake on a car and the car rolls into a toolbox the mechanic is legally liable for this loss therefore the coverage will come. Garagekeepers coverage normally applies on a legal liability basis. It protects a customer s vehicle when you are keeping it at a covered location for parking or storing or to perform service. Attached to the garage liability policy one often finds a coverage called garagekeepers insurance.

Garagekeepers coverage is what protects the vehicles you are working on but ensuring you have the correct garage keepers coverage will save you from surprises and headaches when an accident does occur. Legal liability garagekeepers coverage only covers a loss when a tech or mechanic is legally liable for a loss. Garage liability comes with multiple restrictions that create major holes in your coverage. Garage keeper s legal liability is defined as.

Garagekeepers legal liability insurance provides protection in case a vehicle is damaged by fire theft vandalism or collision. The risks that may arise in an auto shop include customer injuries faulty products manufactured at the shop and property damage of a vehicle while in the custody of the shop. The garage liability policy is one of the most misunderstood types of business insurance policies. That is it covers loss to customers vehicles only if you are legally liable for the damage.

Covers any third party claims involving the vehicle.