As an auto service repair business, you equip and train your employees with the tools they need to perform each task with superior precision; however, where humans are present, so is the possibility of a mistake or an accident. Protect your business with garage and garage keeper's liability insurance.
Garage Liability Insurance
Garage liability insurance is meant to serve as a general liability coverage option and is critical for auto service related businesses, as it offers protection from incidents that happen during day-to-day operations, including accidental physical and property damage.
For example, if a customer were to slip and fall while walking through the parking, garage liability insurance coverage would be there to help protect your business's assets.
Garage Keeper's Liability Insurance
Garage keeper's protection is another form of liability insurance, but it comes from a different angle, as the goal of this coverage is to offer protection against damages caused to a customer's vehicle while in your possession.
Examples of protection under this policy component would include a fire that damages a customer vehicle you have housed in your service shop or a customer's car stolen while on your property.
Here are just some of the additional facts you need to know to ensure full protection with your new garage and garage keeper's liability insurance.
Dual Coverage Is Required
Garage liability insurance and garage keeper's liability insurance appear similar on the surface, but it's important to understand that they aren't mirrored policies. Just because you have garage liability coverage, this does not absolve you of the need for garage keeper's liability protection. Liability plans have provisions known as care, custody and control clauses.
This clause omits coverage for incidents related to the care, custody or control of any customer's property you are in possession of, such as damage to a customer's vehicle while test-driving it after repairs. Garage keeper's liability is in place to kick in where liability protection ends.
It's Easy to Control Costs
As a business owner, keeping your operating costs as low as possible is always the goal. Fortunately, there are things you can do to manage your garage liability and garage keeper's liability coverage. First, take a proactive approach to safety.
For instance, keeping a well-maintained exterior can help lower the risk of a slip and fall, and ensuring team members are well-trained on how to handle certain equipment can help prevent damage to a customer's vehicle. Second, seek alternative payment options.
For example, you may be able to earn a discount on your policies if you pay for the coverage in full each year, rather than paying quarterly or monthly.
There Are Coverage Limits
The coverage limits of general liability insurance have been highlighted, but it's important to understand that neither policy is all-encompassing, just like any other form of insurance coverage. An important area where these policies will not offer coverage is faulty equipment or work.
If one of the technicians performs repairs with equipment that is defective or conducts the repair incorrectly, coverage may not be extended. Certain types of loses for the customer are also not covered under these policies, such as the loss of any equipment that is not considered a permanent fixture within the vehicle.
At Finley Pinson Insurance, we are committed to meeting your insurance needs. With a variety of coverage options, we can sit down with you and discuss your protection needs to formulate an all-inclusive coverage option that encompasses all your needs.