If you have a business dealing with customers’ vehicles, you must have garage liability insurance. Businesses like auto shops, towing companies, oil change and service shops, auto glass repair shops, car dealerships, parking garages, etc., require garage insurance to protect the business, employees, customers, vendors, and overall property. This insurance protects the business owner should a third party become injured or damaged in the garage, or an accident occurs on the premises. Here is why garage insurance is beneficial if you have a business that handles customers’ vehicles.
The Importance of Having Garage Liability Insurance
Garage insurance combines an auto policy with general liability insurance for businesses. That means the insurance pays for medical expenses, repairs, and other costs incurred on the property. Most policies cover bodily injuries by covering medical expenses for third parties injured on the premises. It also covers property damaged in the garage, like a phone damaged by heavy equipment or vehicles stolen or damaged while on the property. Garage liability insurance also covers products and operations. For example, it covers expenses should an issue arise from the work done by the mechanic. In short, garage insurance covers the following:
- Third-party injuries
- Employee dishonesty
- Liability claims
- Property damage is caused by equipment owned by the business.
- Products sold or made by the company that damages a customer’s vehicle.
Garage insurance provides peace of mind that the insurance company protects the items in the garage and the entire business. The cost of paying insurance premiums is less than how much you can incur from the damage to your garage or business. Therefore, business owners pay for garage insurance to protect their property from theft and vandalism. They also pay for the policy to protect their customers from bodily injury. Another reason why people pay for garage insurance is to safeguard their businesses against liability and other financial risks.
You must remember that garage insurance does not entirely protect losses incurred on customers’ autos. Therefore, the business owner needs extra coverage, known as garage keepers liability insurance. The insurance provides additional coverage for physical damage to customers’ automobiles. It covers the autos if they are damaged in the garage.
The cost of this insurance varies with businesses. However, factors like business location, coverage limits, type of vehicles in the garage, and number of cars in a day, affect the cost. Therefore, getting a quote from the insurance company is crucial.
Garage keepers’ liability insurance also covers other aspects like:
- Fire
- Theft
- Accidental damage
- Vandalism
- Weather conditions
What is Not Covered under Garage Insurance?
Garage insurance protects your business from liability issues. However, this does not completely cover everything. Therefore, it is not a comprehensive cover. There are specific things the policy does not cover. First, this policy does not protect your employees from injury. You need to pay for separate workers’ compensation insurance. The insurance does not cover the garage. That means you need commercial property insurance to protect your business.
Why You Should Get Garage Insurance?
Having garage keepers liability insurance is vital if you own a business that handles automobiles. This accounts for all companies dealing with customer vehicles, irrespective of the auto services you offer. The cost of insurance varies based on various factors. So, speak to your insurance company and pick the best cover.
