You’ll come across garage liability and garagekeepers liability coverage if you work in the automotive services industry. Confused? Even people in the insurance business can be confused.
These two types of insurance may seem similar at first, but they are quite different. They’re designed to be combined to provide comprehensive coverage.
Learn the differences between garage liability and garagekeepers liability to protect your business.
What is garage liability coverage?
Garage liability insurance is often the first type of coverage purchased by owners of auto businesses. This insurance provides financial protection if you are held responsible for accidents in garage operations. For example, if a customer slips and falls in your shop, or if they damage a client’s property.
Say you are driving your vehicle and hit another car. Garage liability insurance in Florida includes damage to another vehicle, not the car you are driving.
What is garagekeepers liability insurance?
Garagekeepers liability insurance covers vehicles that you don’t own but are in your possession, such as vehicles owned by your customers. It covers damage to vehicles that you are servicing.
A customer may have dropped off their car to be serviced. Your mechanic accidentally drives into the bay, hitting a bollard and causing a dent in the car. The garagekeepers liability insurance would cover repairs to the car caused by the bollard.
What is the difference between garage liability and garagekeepers liability?
Let’s compare the two policies now that you know what they cover.
Garage liability insurance protects you from any liability in the event of an accident that occurs during business operations. Garagekeepers liability insurance pays for covered damages on the vehicles of customers.
Garage Liability does not cover vehicles left at the garage; it only covers certain business activities and the use of automobiles. Garage liability protects your business against certain garage-related lawsuits due to your owning a business.
Garagekeepers Liability Insurance provides financial protection if you damage a customer’s vehicle by accident. This protection will help pay for any covered damages that occur if you leave the car in your care, whether it is being repaired or stored.
Do I need garage liability or garagekeepers insurance?
You’ll need garage liability insurance if you are just starting. This is a standard insurance policy that’s often required by auto service providers.
Garage liability is an insurance that covers all the risks faced by business owners, including but not limited to:
- Auto Repair
- Auto body
- Car wash
- Tire shops
- Oil Change Stations
- Shops that sell auto parts
Garagekeepers insurance is essential for any auto-related business. Garagekeepers liability is an extra cushion that protects your business. Garagekeepers liability can help protect your customers as you grow your business.
How BizInsure helps auto service and repair businesses
You can make better decisions about your insurance coverage if you know the difference between garage liability and garagekeepers’ liability. BizInsure simplifies your insurance and takes care of everything else so you can concentrate on running your business.
Our auto repair and service insurance packages are tailored to your company’s specific needs.
If you have any questions, our licensed insurance professionals in the U.S. are available to assist.
