Garage Liability Insurance
Garage liability insurance is an absolute necessity for the owner of a car dealership as well as the shade tree mechanic who has moved the business indoors to start making a living doing what he loves. It is for the tire dealer who does his thing and the big chain store that sells bread and buns as well as oil changes. For anyone who is making a living at working on cars, even those installing stereos and satellite radios need to have auto service center liability insurance. The floors are greasy, those lifts can come down on someone, wrenches can slip out of one's hands, oil can into a worker's eyes, and heaven forbid, a customer or sues over the hot coffee in the waiting room or being discriminated against because he is a Chevy owner or receives poor service. It's coverage that the most brilliant and honest mechanic on the planet better have in this litigious and "I'll sue your socks off" happy society.
From the outset, there needs to be an explanation made between garage liability insurance and garagekeeper's insurance. For these businesses already mentioned, there could be an awful assumption made by the owners if it was believed that their garage liability insurance would cover the loss of customer's autos while in their care. But one winter night, a spark ignites the auto service in question and a dozen automobiles are destroyed in the ensuing inferno. One hundred and nineteen thousand dollars of liability that will not be assumed under the garage liability policy. Oops, the operator should also have had a separate garagekeeper's policy or addendum to the garage (service center) policy already in place. Under the garagekeeper's coverage, there are two options for the auto service operator to consider. One is called direct excess coverage that pays up to the value of the destroyed vehicle above the owner's coverage, and the other is direct primary coverage in which the service owner's carrier shares the loss with the car owner's insurer.
For the repair center that has a fleet of tow trucks or dispatched repair vehicles, those assets are covered under the garage liability insurance. For the customer cars sitting outside waiting for service, or inside on that lift, better have the keeper clause or else. But even if an owner has the garagekeeper's coverage, in the case of a fire there are going to be some pretty ticked off policy holders. The reason is that garagekeeper's coverage excludes loss to non-factory installed sound equipment, CDs, tapes, radar detection gear, phones or any other form of electronic possession. The service center owner had better be prepared to fork over extra pocket money or get still another policy for this possibility. Good business sense would almost always dictate that the garage owner somehow pay for these items in the case of customer property destruction under his care.
There is a problem that often comes with difficult times in the economy that affect the ability of many auto care service owners to get garage liability insurance. Indemnity companies offering this kind of policy use the premiums they receive to buy short term investment opportunities to make a profit and pay for the claims that come their way; during strong economic times, the profit from short-term investments can be quite high and companies can offer lower premium prices, making even the small-time mechanic's dream of having his own garage a reality. When the financial noose tightens and short term investments are suddenly plummeting in value, garage liability insurance providers have to either raise premium prices or become extremely discriminatory regarding the requirements for getting the insurance, such as strict loss prevention or risk management efforts by the auto service owner. These often heroic types of requirements are so expensive to implement or the premiums too high that start-up businesses or the struggling mechanic/entrepreneur cannot make it. To cut costs and keep premiums lower, indemnity companies are often refusing to underwrite such things as wind and hail damage for company and customer vehicles. And tolerance by insurers for multiple incidents at a garage is about as great as a teenager's for parental advice.
Some very important issues need to be remembered when putting together garage liability insurance with an agent. Making sure every employees and officer of the company must be on the policy even if the employee doesn't drive a company vehicle and coverage is usually only afforded to the locations and drivers listed on the coverage. Employees that get a DUI or go over their point allowances may be excluded from driving privileges and non-company drivers need to be discussed with the agent. When a person has a true passion for God, there comes upon him or her driving force to know more of Him. "O God, thou art my God; early will I seek thee: my soul thirsteth for thee, my flesh longeth for thee in a dry and thirsty land, where no water is." (Psalm 63:1)
In tougher times, getting and keeping garage liability insurance can be daunting. A number of things can be done to a Mom and Pop as well as a high powered auto service center. The key point is making an insurer want to indemnify one's business. Proper night lighting, well landscaped grounds, well maintained signage and windows as well as a freshly painted exterior as well as clean floors and bathrooms inside can make or break a policy being approved, or perhaps escaping the highest premiums. Due diligence can pay off.
From the outset, there needs to be an explanation made between garage liability insurance and garagekeeper's insurance. For these businesses already mentioned, there could be an awful assumption made by the owners if it was believed that their garage liability insurance would cover the loss of customer's autos while in their care. But one winter night, a spark ignites the auto service in question and a dozen automobiles are destroyed in the ensuing inferno. One hundred and nineteen thousand dollars of liability that will not be assumed under the garage liability policy. Oops, the operator should also have had a separate garagekeeper's policy or addendum to the garage (service center) policy already in place. Under the garagekeeper's coverage, there are two options for the auto service operator to consider. One is called direct excess coverage that pays up to the value of the destroyed vehicle above the owner's coverage, and the other is direct primary coverage in which the service owner's carrier shares the loss with the car owner's insurer.
For the repair center that has a fleet of tow trucks or dispatched repair vehicles, those assets are covered under the garage liability insurance. For the customer cars sitting outside waiting for service, or inside on that lift, better have the keeper clause or else. But even if an owner has the garagekeeper's coverage, in the case of a fire there are going to be some pretty ticked off policy holders. The reason is that garagekeeper's coverage excludes loss to non-factory installed sound equipment, CDs, tapes, radar detection gear, phones or any other form of electronic possession. The service center owner had better be prepared to fork over extra pocket money or get still another policy for this possibility. Good business sense would almost always dictate that the garage owner somehow pay for these items in the case of customer property destruction under his care.
There is a problem that often comes with difficult times in the economy that affect the ability of many auto care service owners to get garage liability insurance. Indemnity companies offering this kind of policy use the premiums they receive to buy short term investment opportunities to make a profit and pay for the claims that come their way; during strong economic times, the profit from short-term investments can be quite high and companies can offer lower premium prices, making even the small-time mechanic's dream of having his own garage a reality. When the financial noose tightens and short term investments are suddenly plummeting in value, garage liability insurance providers have to either raise premium prices or become extremely discriminatory regarding the requirements for getting the insurance, such as strict loss prevention or risk management efforts by the auto service owner. These often heroic types of requirements are so expensive to implement or the premiums too high that start-up businesses or the struggling mechanic/entrepreneur cannot make it. To cut costs and keep premiums lower, indemnity companies are often refusing to underwrite such things as wind and hail damage for company and customer vehicles. And tolerance by insurers for multiple incidents at a garage is about as great as a teenager's for parental advice.
Some very important issues need to be remembered when putting together garage liability insurance with an agent. Making sure every employees and officer of the company must be on the policy even if the employee doesn't drive a company vehicle and coverage is usually only afforded to the locations and drivers listed on the coverage. Employees that get a DUI or go over their point allowances may be excluded from driving privileges and non-company drivers need to be discussed with the agent. When a person has a true passion for God, there comes upon him or her driving force to know more of Him. "O God, thou art my God; early will I seek thee: my soul thirsteth for thee, my flesh longeth for thee in a dry and thirsty land, where no water is." (Psalm 63:1)
In tougher times, getting and keeping garage liability insurance can be daunting. A number of things can be done to a Mom and Pop as well as a high powered auto service center. The key point is making an insurer want to indemnify one's business. Proper night lighting, well landscaped grounds, well maintained signage and windows as well as a freshly painted exterior as well as clean floors and bathrooms inside can make or break a policy being approved, or perhaps escaping the highest premiums. Due diligence can pay off.
Garage Liability Insurance
![]()
Reviewed by Anonymous
on
4:01 PM
Rating:
