Running an auto garage requires a lot of expertise, not only on how to service vehicle, but also on how to operate a successful business. This requires meeting all of your customers’ expectations and doing all within your power to return their cars to them on time and without any further hassles.
However, there’s always a chance that something could go wrong when you provide your services. It could affect any customer and their vehicle. At this time, you might have to provide compensation to the affected client and the benefit that will help you do so is your liability insurance.
Still, there are two distinct types of liability benefits available to auto repair shops—garage liability insurance and garage keepers liability insurance. Yes, they sound similar, but they are still distinct. As a result, you will often need both benefits as part of your overall commercial insurance package.
Let’s take a closer look at the differences between these two benefits.
Garage Liability Insurance
Operating a garage of any kind, be it a repair service or parking garage, has its liabilities. There are always going to be risks present that could cause property damage or bodily injuries to others. Garage liability insurance will be there to help you cover these third-party losses when they are your fault. A situation where you might find this coverage helpful is if a customer slips in a puddle of oil in your garage, gets hurt and then sues you over their medical expenses and other costs.
All in all, you can view this coverage as a more specific type of general liability insurance. Because there are loss scenarios that are unique to garages, the enhanced garage liability benefit will make certain that you have the coverage necessary for these specific instances of losses.
Garage Keepers Liability Insurance
Compared to garage liability coverage, garage keepers liability coverage is even more specific. It applies specifically to the automobiles left in your care. After all, there is a chance that when someone entrusts their vehicle to you that you might cause damage to it.
For instance, when backing a client’s vehicle out of the garage and going to park it, you might collide with a post that sits in your parking lot. Now, the vehicle has further damage which is going to be both a cost and an inconvenience to the owner. Should they demand compensation, it is the garage keeper’s liability insurance that will pay for the client’s losses on behalf of the company. Therefore, neither party will duffer extensive financial losses due to the business’s mistakes.
Don’t hesitate to discuss the finer points of both garage and garage keepers liability insurance with one of our agents. We can help you understand the finer points of each plan, and how each will come into play if you ever face a challenge from a customer.