Garagekeepers Insurance

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Garagekeepers Insurance Policy Information

Garagekeepers Insurance

Garagekeepers Insurance. Garage keepers coverage is part of the auto dealers coverage form. It may also be added to a garage, repair shop, or parking lot in whose custody customers leave their cars as a bailee and, as such, may be held liable for loss of or damage to the property bailed to it.

Numerous enterprises not in the automobile business handle automobiles of customers as part of their regular services.

Motels, 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. Garagekeepers insurance can be written to cover this exposure.

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:


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.

Hazards Covered

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?

Auto Mechanic Under Car

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?

Car Being Towed

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.


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.

Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).


Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

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 Commercial Insurance

Your small business faces many potential disasters including: fire, floods, theft, equipment breakdown, lawsuits from clients or customers and current & former employees. Any many other risks you haven't even thought about.

A small business commercial insurance program should provide protection for both larger and smaller disasters. The obvious things like fire, flood and theft most business owners think about... but what if a hacker infects your computers with a virus - and files containing private customer information like credit card and Social Security numbers are stolen?

Who is going to pay to fix your customers credit rating etc...? Will your insurance pay for the cost? You need to know that.

Your commercial insurance program should cover events that can close down your company, or cause it to lose revenue. Anything less than that is not enough coverage. Commmercial insurance doesn't cover everything, and all policies have exclusions and limits.

You need a written plan that allows you to get your operations back up and running as quick as possible.


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