Garage liability insurance protects you from the financial implications that may arise if you damage customers’ cars or personal property while they are in your business’s care. While you may already have a general liability policy in place, that coverage alone can leave gaps. Therefore, it’s crucial to understand who needs garage keepers insurance and why.
Who Needs Garage Keepers Insurance?
Garage keepers insurance is an essential policy that is designed to provide protection from unforeseen events to businesses such as:
- Auto repair shops
- Garages
- Car dealerships
- Towing services
- Windshield repair services
- And more
Garage keepers insurance provides coverage for damages that may occur on your customers’ cars while in your custody or control.
Essentially, this type of policy protects you from financial loss if something happens while the car is on your property.
What You Need To Keep in Mind
If you want to own or operate a mechanic shop, a garage keepers insurance policy is required by law in many states. You may also be contractually obligated to carry it by those leasing you the garage or the property you are working on. Even if it’s not mandatory, having proper coverage can safeguard your business from potential lawsuits and limit your financial liability.
Garage liability insurance can provide different types of policy protections. For instance, it can cover you for damages to customer vehicles that may occur during test drives or on road tests. It can also protect you from damages that may arise due to fire, theft, or vandalism, or even due to unexpected weather events such as hail.
Additionally, this type of insurance can also provide coverage for legal fees you may incur as a result of property damage, physical injury, or negligence. In the event of a lawsuit, garage keepers insurance can provide you with sufficient funds to hire defense attorneys and pay any settlements or judgments to the injured parties.
Wrapping It Up
Garage keepers insurance is an essential policy that all auto repair shops, garages, and car dealerships should consider. It provides the much-needed peace of mind, knowing that you have protection in case you are liable for damages caused during test drives, repairs, or even while parked on your premises.
Need Commercial Insurance? Uniserv Is Here To Help
Whether it’s life insurance or business insurance, we offer a wide range of insurance solutions to protect the things you value the most.
We serve companies and individuals all over California. Call 888-698-6473 today or fill out the contact form to get the dependable protection you deserve.
