Every business needs to address the liability risks they pose to others through their operations. However, it usually takes a variety of liability policies to adequately cover risks. If you manage a vehicle garage, then you might see garage liability and garagekeepers liability coverage among your policy options. Though they sound similar, these are separate types of coverage. You will likely need both in your line of work.
How Does Liability Insurance Work?
All businesses need liability insurance in some form. In fact, most need several types of protection. Liability policies apply when you make negligent mistakes that cause harm to someone who does not work for your business. A policy can help you avoid these losses by compensating the affected party for you. You won't put the business in the red as you try to address someone's grievance.
In garages, there are plenty of liability risks present, both unique to your industry and common to most businesses. To cover the more common risks, you will likely need garage liability coverage. However, you need garagekeepers liability insurance, too, because it will insure one unique risk.
Garage Liability Policies
With garage liability insurance, you can cover many of the common liabilities present in your operation. These might include:
- Bodily injury liability coverage: When someone gets hurt in the business, your policy will pay for their recovery costs.
- Property damage liability coverage: If you damage someone’s belongings, then this coverage can compensate them. It will not apply to damage done to someone’s car you are servicing.
- Personal injury liability coverage: If someone claims that you committed libel or slander against them, then this coverage kicks in.
- Completed operations coverage: Should you make a mistake or do faulty work on someone’s car, then this coverage will compensate them for resulting damage.
You will often find these policies within one garage insurance package.
Garagekeepers Liability Coverage
Your garage liability policy can offer a special type of coverage called garagekeepers liability insurance. However, these are still separate types of coverage, and most garage liability policies don't automatically offer it. You might need to add it to your policy separately.
It is a garagekeepers policy that applies if a car that someone has left in your care sustains damage. So, if severe weather or fire damages the car, then you might have coverage. The policy might also apply if someone steals or vandalizes the car, or if you accidentally wreck it. However, you will still need operations liability coverage to apply to work done on the car.
To tailor your liability policy to your garage’s needs, work with your independent insurance agent. They can help you get a policy that will always apply your coverage in the appropriate ways.
Also Read: What Does General Liability Insurance Not Cover?
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