Protecting your assets and the vehicles in your care is crucial when you own a business that works with cars. Whether you own a repair shop or a dealership or offer valet services, insurance coverage can help you avoid costly mistakes.
These two common insurance policies are often confused as garage liability insurance and garage keepers insurance. While they deal with vehicle risks, they cover different aspects of your business. Understanding the differences between these two types of coverage is vital for ensuring your business is fully protected.
Garage liability insurance protects your business from third-party claims involving injury or property damage. Here’s what it covers:
Injury Claims:
If a customer slips on your property or gets injured while interacting with your business, garage liability insurance can help cover medical expenses, legal fees, and settlements.
Property Damage:
If your business causes damage to a customer’s property, such as a vehicle, while conducting a service, this insurance helps pay for the damages.
General Business Risks:
This policy offers coverage for a wide range of risks associated with running an automotive-related business. It’s a broad safety net that protects you from everyday occurrences.
However, garage liability insurance does not cover vehicle damage while under your care or control.
On the other hand, garage keepers’ insurance protects explicitly the vehicles in your care. This is important for businesses that manage customer vehicles, such as auto repair shops, car dealerships, and valet services. Here’s how it works:
Vehicle Damage:
If a customer’s car is damaged while on your property, such as from a fire, theft, or vandalism, garage keepers’ insurance covers the repair or replacement costs.
Storage Risks:
When vehicles are stored or parked on your property, garage keeper insurance protects them from unforeseen events like accidents or natural disasters.
Extended Coverage:
This policy also provides coverage for situations that garage liability does not, making it a vital addition to your insurance plan.
Understanding the difference between these two types of insurance is essential for managing risks effectively. Here’s why both are necessary:
Garage Liability Insurance
covers third-party injury and property damage but does not cover the vehicles under your care. If a guest’s vehicle is damaged in your shop, your garage liability insurance will not cover it.
Garage Keepers Insurance
covers damage to customer vehicles while they are in your possession. This is crucial for auto shops or businesses that park or store customer cars, providing an additional layer of security.
Both policies complement each other, ensuring complete protection for your business, your customers, and the vehicles you handle.
In the automotive service industry, understanding the right coverage for your business is essential to avoid costly setbacks. Garage liability insurance and garage keepers’ insurance are critical but serve different purposes. While garage liability insurance helps protect your business from general liability risks, garage keepers’ insurance is specifically designed to protect customer vehicles in your care.
At GrayStone Insurance Group, we can help you navigate these options and choose the right coverage for your needs. Contact us today at (866) 988-3709 to secure your business with garage keepers insurance coverage.
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