garage keepers insurance
Garage-keepers Legal Liability insurance provides protection in case a vehicle is damaged by fire, theft, vandalism, or collision. coverage is an optional line offering protection to the garage business for loss to a customer’s auto left in the insured’s care, custody, or control. It protects a customer’s vehicle when you are keeping it at a covered location for parking or storing, or to perform service.
Who needs garage keepers liability coverage?
GarageKeepers Liability insurance is vital for small businesses dealing with automotive services. This includes the following but is not limited to, auto repair shops, service stations, towing companies, automotive body shops, vehicle detailing, maintenance companies, car-wash hubs, and many more.
As long as your company deals with attending, servicing, repairing, parking, or storing customer’s vehicles, obtaining a Garage Keepers Liability insurance is a must to safeguard the financial interest of your business.
How much does Garage Keepers Liability insurance cost?
Like other insurance policies, determining the exact price of GarageKeepers Liability will depend on your business and degree of coverage. Several factors will affect the amounted premium such as the type of vehicles you service, the location of your business, and the number of vehicles you commonly attend to in a day.
But on average, this policy will cost anywhere from $1,100 to $1,330 annually. Premium rates range from $800 being the cheapest, up to $2,000 for auto dealers who need more protection.
Limits, deductibles, and other details
You must select limits for Garagekeepers Legal Liability coverage, which will determine the maximum amount of coverage available to you on a per-occurrence basis.
Whether one car or a garage full of cars is damaged while in your care, the total amount covered by Garage-keepers insurance is based on the limit you choose.
You can select from a variety of options depending on your state, but the typical maximum available limit is $2,500 per occurrence.
You also must select a per-vehicle deductible, which is a typical $500. This means you would pay the first $500 to repair or replace each vehicle, and your insurance company would pay the remainder.
If a client’s automobile is damaged by a peril covered in the policy, and if the insured is held liable for the damage, the policy will pay. Note that both elements must occur in order to qualify for coverage.
The damage must be due to the action or decision of an insured, and it has to involve an eligible source of loss. On the other hand, if the loss is not held to be one for which the insured is liable, there is no coverage, even though the damage was due to one of the perils described in the policy.
It is similarly critical to comprehend that the garagekeepers insurance policy does not cover all of the insured’s liability for damage to customers’ cars, but only for those damages caused by a peril insured against.
It is also important to understand that a garage or service station cannot rely on its customers’ automobile insurance.
If a customer’s automobile is damaged while it is in the custody of a garage or technician, and it can be proven that the loss was due to the negligence of the bailee, the customer can look to the garage for compensation for the damages.
If the clients carries insurance on his or her automobile and collects under his or her policy, the insurance company, after it has paid the loss, can move against the garage for reimbursement by subrogation
Note Some states might have a different name for gatekeepers, for instance, Texas and Virginia, Garage-keepers Legal Liability coverage is called Storage Location insurance
You can find coverage in these states: Alaska, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Wisconsin, and Wyoming