Garagekeepers Insurance Policy Information
Garagekeepers Insurance. Garagekeepers insurance is a type of insurance coverage that protects a business that provides storage, parking, or maintenance services for vehicles. This type of insurance covers damages to the vehicles in the care of the business, as well as any liability for damages that the business may be responsible for.
This insurance is often used by automotive repair shops, car dealerships, and parking garages, but it can also be used by businesses like hotels, apartment buildings, office buildings, mercantile establishments, and institutional entities that maintain garages or public parking facilities, or park cars for their clients face potential liability for loss of or damage to vehicles entrusted to their care.
It is important for businesses that provide these types of services to have garagekeepers insurance to protect their assets and ensure they are able to continue providing services to their customers.
Garagekeepers insurance is designed to protect auto service, towing and car parking/storage businesses with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked Garagekeepers Insurance insurance questions:
- What Is Garagekeepers Insurance?
- How Much Does Garagekeepers Insurance Cost?
- What Does Garagekeepers Insurance Cover?
- What Does Garagekeepers Insurance Exclude?
- Where Do Garage Keepers Insurance Policies Offer Coverage?
- What's The Difference Between Garagekeepers Insurance vs Garage Liability?
- What Does Garagekeepers Insurance Cover & Pay For?
What Is Garagekeepers Insurance?
Garagekeepers insurance is a type of insurance that protects business owners who provide parking or storage services for customer vehicles. This type of coverage provides protection against damages to customer vehicles while they are in the care, custody, and control of the business.
This can include damage from fire, theft, collisions, or other covered losses. It is typically purchased by businesses such as parking garages, auto repair shops, valet parking services, and car rental companies.
How Much Does Garagekeepers Insurance Cost?
The average price of a standard $1,000,000 Garagekeepers Insurance for small auto service, parking and towing businesses from $47 to hundreds or more per month based on location, value of vehicles, services offered, claims history and more.
What Does Garagekeepers Insurance Cover?
A garagekeepers insurance basic policy covers the insured's liability for automobiles that are accepted for safekeeping, storage, service, or repairs when such are lost or damaged by certain perils specified in the policy.
The garage keepers policy does not extend to vehicles that are being road tested for appraisal or demonstrated for sale. It is important to understand that the basic policy is not a policy covering customers' goods like some forms of bailee insurance, but a liability policy that covers only when the insured is liable for the loss.
If a customer's automobile is damaged by a peril covered in the policy, and if the insured is held liable for the damage, the policy will pay. Note that both elements must occur in order to qualify for coverage.
The damage must be due to the action or decision of an insured, and it has to involve an eligible source of loss. On the other hand, if the loss is not held to be one for which the insured is liable, there is no coverage, even though the damage was due to one of the perils described in the policy.
It is equally important to understand that the garagekeepers insurance policy does not cover all of the insured's liability for damage to customers' cars, but only for those damages caused by a peril insured against.
It is also important to understand that a garage or service station cannot rely on its customers' automobile insurance.
If a customer's automobile is damaged while it is in the custody of a garage or repairperson, and it can be proven that the loss was due to the negligence of the bailee, the customer can look to the garage for compensation for the damages.
If the customer carries insurance on his or her automobile and collects under his or her policy, the insurance company, after it has paid the loss, can move against the garage for reimbursement by subrogation.
Direct Coverage Basis: The policy can be written on a direct coverage basis by so indicating on the declarations so that it covers on certain perils on a first-party basis. The insured is not required to show that he or she is legally liable for the loss or damage. Direct coverage insurance is available either as primary or as excess coverage over the policy covering the customer's automobile.
Defense of Suits - Supplementary Benefits: These benefits are payable, regardless of their amount over and above the limits of the garage keepers policy.
Specified Causes of Loss: This section of the policy provides coverage for fire, explosion, theft, riot, civil commotion, vandalism, or malicious mischief. Loss of use due to theft, riot or civil commotion is included.
The garagekeepers insurance policy does NOT cover loss arising out of a theft by an employee. Similarly excluded is loss by theft by the named insured, a partner or member of the firm, etc.
It is important to understand that the exclusion refers only to "theft." Whether the taking of an automobile by an employee is a theft will depend on how a given jurisdiction defines "theft." If the act is held to be conversion or embezzlement, the policy may be obligated to provide coverage.
Comprehensive: Coverage may be provided either against the perils listed under the specified causes of loss coverage (discussed above) or under the comprehensive form. Under the comprehensive coverage, all risks of physical loss or damage other than by collision are covered.
As under the comprehensive policy covering other automobiles, an exception is made for collision with an animal or bird, or for the breakage of glass, and such losses are covered.
Collision Or Upset: This policy may be extended to include collision or upset. This will cover the insured's liability for damage to automobiles and other property customarily left in the custody of a garage by collision or upset.
Note: Collision coverage is the only one that affords protection for loss to property other than automobiles. Concerning the perils discussed above - specified perils or other than collision - the coverage extends only to automobiles. Loss of use is covered under collision.
What Does Garagekeepers Insurance Exclude?
Employee Dishonesty: The policy does not cover fraudulent, dishonest, or criminal acts committed by the insured, a partner or member of a firm, or by an employee while working or otherwise, whether acting alone or in collusion with others.
Questions arise under the policy in cases where an employee who is delivering an automobile to a customer decides to take a "joy ride." It is sometimes contended that the act does not constitute a theft because the employee had every intention of delivering the car to its rightful owner.
On the other hand, in many states, the unauthorized use of a motor vehicle constitutes a felony and, as such, would be excluded from coverage.
Voluntary Parting Due to Trick: The policy excludes losses that are the result of a trick, scheme, or false pretense. This exclusion can be deleted by special endorsement.
Liability Assumed Under Contract: The policy covers such liability that arises from the insured's usual conduct of his or her business, but not for additional liability the insured may assume by special agreement with his or her customers, nor for any liability that the insured may face for faulty workmanship.
Thus, a garage might advertise that it protected its customers against loss by fire and theft. By virtue of this agreement, it might be held liable for a fire or theft, even though it had not contributed in any way to the loss by its negligence. Such assumed liability would be covered under the garagekeepers basic policy.
War, Revolution Risks: The policy excludes loss due to war, insurrection, rebellion, or revolution.
Defective Parts: There is no coverage for defective parts, accessories, materials furnished, or for faulty work performed on an automobile out of which loss arises.
Where Do Garage Keepers Insurance Policies Offer Coverage?
The garagekeepers insurance basic policy covers the insured's liability for loss to automobiles in the insured's custody, whether on his or her premises or, if in the course of the insured's business, while temporarily removed.
Thus, coverage would apply to loss that occurred at the premises of another service organization with whom the insured has arranged to have some work done on the vehicle.
Similarly, loss during the pickup or delivery of an automobile, or during a road test would be covered.
The garage keepers insurance policy also covers away from the insured's premises while the automobile is being attended, as during a service call.
What's The Difference Between Garagekeepers Insurance vs Garage Liability?
Garagekeepers Insurance protects auto service businesses for losses to a customer's auto left in their care and supervision.
A garage keepers policy protects auto service businesses from damage to a customer's vehicle including fire, theft, weather, and vandalism.
Garage Liability: is a policy that covers bodily injury or property damage caused by an incident out of garage operations. The policy refers to the ownership, maintenance or use of locations for garage business operations.
Garage liability insurance is helpful to car dealerships who are looking to cover all autos on their lots, including cars being worked on in their mechanical garages.
What Does Garagekeepers Insurance Cover & Pay For?
Garagekeepers Insurance is a type of insurance policy that protects businesses that are responsible for storing, repairing, or servicing vehicles belonging to others. It covers damages to customers' vehicles that occur while they are under the care, custody, or control of the business. Here are some examples of Garagekeepers Insurance claims and how the policy can help pay for them:
A customer's car is damaged while in the care of an auto repair shop: If a customer's car is damaged while in the care of an auto repair shop, the Garagekeepers Insurance policy can cover the cost of repairs or replacement of the vehicle.
A car is stolen from a car dealership lot: If a car is stolen from a car dealership lot, the Garagekeepers Insurance policy can cover the cost of the stolen vehicle.
A car is damaged while parked in a parking garage: If a car is damaged while parked in a parking garage, the Garagekeepers Insurance policy can cover the cost of repairs or replacement of the vehicle.
A car is damaged during a test drive: If a car is damaged during a test drive, the Garagekeepers Insurance policy can cover the cost of repairs or replacement of the vehicle.
A car is damaged during a collision while being towed: If a car is damaged during a collision while being towed, the Garagekeepers Insurance policy can cover the cost of repairs or replacement of the vehicle.
In all of these examples, the Garagekeepers Insurance policy can help pay for any damages or losses incurred by the business or its customers, potentially avoiding costly lawsuits or settlements.
Garagekeepers Insurance - The Bottom Line
Garagekeepers insurance protects your customers' vehicles or goods from damages while under your care, custody, control or possession.
Each separate location at which the insured stores or services automobiles is individually account for in the garagekeepers insurance policy.
Alongside each location, the insured is required to indicate the maximum number of vehicles that will be stored and the limit of liability.
Additional Resources For Small Business Insurance
Protect your company and employees with the right commercial insurance policies. Read informative articles on small business insurance coverages - and how they can help shield your company from legal liabilities.
- Small Business
- Business General Liability
- Business Interruption
- Business Liability
- Business Owners Policy (BOP)
- Certificate of Insurance
- Commercial Auto
- Commercial Crime
- Commercial Package Policy
- Commercial Property
- Commercial Umbrella
- Comprehensive General Liability
- Cyber Liability
- Directors and Officers Liability
- Employment Practices Liability
- Event Cancellation
- Fiduciary Liability
- General Liability
- Home Based Business
- Independent Contractor
- Liability Insurance Certificate
- Liability Insurance
- Ocean Marine
- Professional Liability
- Specialty Directors And Officers Liability
- Specialty Errors And Omissions
- Specialty Excess
Businesses need commercial insurance to protect their assets, employees, and customers. It helps to cover the costs of potential accidents, lawsuits, and other unforeseen events that can result in financial loss.
For example, if a customer slips and falls on a wet floor in a store, the business could be held liable for their injuries. Commercial insurance can help cover the costs of medical bills and legal fees associated with the incident.
Additionally, businesses often have valuable equipment and inventory that need to be protected from theft or damage. Commercial insurance can provide coverage for these items in the event of a disaster, such as a fire or natural disaster.
Furthermore, businesses often have employees that can be injured on the job. Workers compensation insurance can provide coverage for medical bills and lost wages for injured employees.
Overall, commercial insurance is a necessary tool for businesses to protect their assets, employees, and customers. Without it, businesses could face significant financial loss in the event of an unexpected occurrence.