Garage or car-based businesses like dealerships, car repair shops, and tow truck services tend to have more risks than small businesses. While liability insurance covers businesses from unforeseen damages, garage-based businesses must get garage liability insurance.
For instance, if a customer slips on a leaked motor oil, gets injured, and sues your business, this insurance covers your business from this situation, getting your business back on its feet.
A general liability insurance policy may not offer coverage for risks channeled by garage businesses. Because of this, you will need garage liability insurance to get enough coverage for your business.
This liability insurance is one of the types of small business insurance used to cover situations such as injuries to customers, damages to customer property, and many more. However, in this write-up, I have explained the insights on this insurance to guide you through.
What is Garage Liability Insurance?
Garage liability insurance, also referred to as garage insurance is a type of commerical general liability insurance for garage-based businesse that covers payments for accidental injuries and property damage due to risky workplaces like a repair shop or garage. To make paying for liabilities not affect your finances, liability insurance is always a good option.
What Does Garage Liability Insurance Cover?
Like other insurance policies, garage insurance covers several incidents caused by your business to others. Its coverage is broken down into three main parts. These parts are:
• Injuries
This part of the garage insurance covers accidental injuries caused to others by your business. These injuries include injuries sustained by customers who slip and fall in your garage, but it does not cover injuries sustained by your employees. Injury liability insurance also covers judgments and settlements if you eventually get sued for a customer injury.
• Property damage
If your business causes accidental property damage to others, this part of garage insurance covers it. Like injury liability insurance, it covers the payment for legal costs, judgments, and settlements if eventually your business gets sued for property damage. However, property damage does not cover damage caused to a customer’s car by your business.
• Products-completed operations coverage
This part of garage insurance coverage covers property damage and injuries caused after a job has been completed. Problems due to defective parts, fault repair, and other liability claims related to the services your business offers are covered by this coverage.
What Does Garage Liability Insurance Not Cover?
While garage insurance covers several situations, it does not cover certain situations. The following are not covered by garage insurance:
• Customer property
Theft or damages to the property of your customer’s vehicle while under your care will not be covered by this insurance. This event is only covered by a garage keepers insurance policy and not a garage insurance policy.
• Employee illness and injuries
Injuries or illnesses sustained by any of your employees due to your business will not be covered by this insurance. Instead, it will be covered by your workers’ compensation insurance. This insurance covers their lost wages, medical bills, and any other related expenses.
• Business property
Any damages made to your business building or property will not be covered by garage insurance; instead, they will be covered by commercial property insurance.
• Deliberate acts
Deliberate injuries and property damage or injuries caused by you or your business will not be covered by garage insurance. However, vandalism caused by someone else to your business will be covered under your commercial property insurance.
• Damage to your business vehicles
If your business vehicle gets stolen or damaged, it will be covered by your car insurance collision or comprehensive coverage and not a garage insurance policy.
Do I Need Garage Liability Insurance?
Garage insurance is channeled to small businesses that are part of the car industry. If you fall under any of the following businesses, you may need garage insurance:
- Car detailers.
- Car repair shops.
- Body shops.
- Emission testing shops.
- Lube and oil change shops.
- Battery and tire repair facilities.
- Auto dealerships.
- Vehicle glass installers.
- Vehicle service stations.
- Detailers
- Muffler shops.
- Parking garages.
- Impound or towing lots.
As long as you own any of these businesses, irrespective of type, you do need garage insurance.
How Much Garage Liability Insurance Cost
How much garage liability insurance costs depends on several factors. There are no specific costs of garage liability insurance; instead, these costs vary depending on your business as well as your financial status. However, the following are the factors that determine how much this insurance costs:
- Business location.
- Business claims history.
- Type of business.
- How old your business is?
- Coverage type and deductible amount.
Using these factors, small business insurance companies determine how much they will charge for garage insurance.
