Garage liability insurance is the backbone of any auto dealership insurance program. This unique policy combines General Liability insurance with Auto insurance, which you will not find in almost any other commercial insurance policy. Garage Liability can apply to either an auto dealership or an auto repair facility.
There are several reasons you might have a loss as a dealership or repair shop, including (but certainly not limited to):
You and your employees are driving vehicles that are owned by the dealership. If such driving causes an accident, you will be liable for the bodily injury or property damage that is caused. The Garage Liability policy responds like an Auto insurance policy and pays for those damages to the other party. NOTE: The Garage Liability policy does not pay for damage to the dealer-owned vehicle. That is a separate coverage called Auto Physical Damage or Dealer Open Lot.
Since you have a lot and a building, someone could trip and fall on the premises and sue you for the damages. This could be from wet conditions, a crack in the pavement, or just the person's clumsiness. The Garage Liability policy responds like a General Liability policy and pays for those damages.
You might take in a client's vehicle for repairs. While driving it to see what is wrong, you or your employees might cause an accident. The Garage Liability policy responds and pays for those damages to the accident caused. NOTE: The Garage Liability policy does not pay for damage to the client's vehicle that you are driving. That is separate coverage called Garagekeepers Liability.
There are some other coverage that usually are packaged within the Garage Liability policy. These include:
Medical Payments - This is a no-fault coverage that responds if someone is injured on your premises or driving one of your cars. This coverage is pretty inexpensive and can prevent someone from suing you.
Personal Injury Protection - Similar to Medical Payments coverage, but only applies in Kansas.
Uninsured Motorist - Pays for bodily injury to a driver or passenger of a dealer-owned car if that car was hit by an uninsured driver. This is required coverage in most states.
Underinsured Motorist - Pays for bodily injury to a driver or passenger of a dealer-owned car if that car was hit by a driver who has insurance, but the bodily injury loss is larger than the other person's auto insurance limits.
Damage to Premises Rented to You - If you rent a building and there is fire damage to that building because of your negligence, this coverage kicks in. Otherwise such fire damage is excluded under the base policy.
At The Insurance Market, we specialize in the unique insurance for auto dealerships and repair shops. Give us a call at 913-722-2111, email at info@the-insurance-market.com, or click the button to get a quote!
