What Are Some Common Exclusions in a Garage Insurance Policy?
Do you have a garage insurance policy? For businesses that operate car repair shops, car dealerships and tow trucks, garage insurance is a must. However, garage insurance may not cover you under all circumstances. Therefore, it’s important to understand the limitations of garage insurance and purchase additional types of insurance as needed.
What Types of Businesses Need Garage Insurance?
Businesses in Florida that deal with cars typically need garage insurance. It is designed to cover –
- Automotive Service Centers
- Body Shops
- Car Dealerships
- Muffler Shops
- Tire and Battery Shops
- Towing Companies and Impound Lots
- Transmission Shops
- Vehicle Repair Shops
It’s important to note that this is not a complete list. If you own a business that pertains to vehicles, you may need garage insurance.
What Garage Insurance Covers
Garage insurance is often called garage liability insurance, and it specifically covers things like customer injuries, customer property damage, legal costs and bad repairs.
- Customer Injuries – If a customer happens to get injured at your shop, your garage insurance would cover their medical expenses.
- Customer Property Damage – If an item your customer has on their person or in their vehicle is damaged, your garage insurance policy would cover the repair or replacement of that item. It’s important to understand that this coverage does not include damage to the vehicle.
- Bad Repairs – If your garage happens to perform a faulty repair or if that repair is completed with a faulty part, your garage insurance policy would cover this type of damage.
- Legal Costs – If you are sued by a customer because of an accident that is believed to have been caused by an action at your business, this coverage helps pay for the legal expenses, including settlements, judgments and counsel costs.
What Is Not Included in Garage Insurance
While garage insurance covers quite a bit, it does not cover everything. This means that your business may need additional types of coverage. Common items that garage insurance does not include are:
- Damage to Your Building – If your building is damaged via fire, theft, vandalism or certain weather events, your garage insurance policy does not cover it. Instead, you’ll need a commercial property policy.
- Damage to Your Business-Owned Vehicles – Your garage policy will not cover any damages to your company-owned vehicles. To have this type of coverage, you’ll need a commercial car insurance policy.
- Injuries to Your Employees – Garage liability insurance does not cover your employees if they are injured on the job. In order to get this type of coverage, you’ll need workers compensation.
- Damage to the Customer’s Vehicle – While garage insurance does cover damage to your customer’s property, that coverage does not extend to their vehicles while they are being stored at your property. To get this type of coverage, you’ll need gatekeepers coverage.
Additional Insurance Coverage You’ll Want to Consider
To be fully insured, you’ll need additional types of insurance coverage, including:
- Commercial Property Insurance – Typically covers damage to buildings, equipment, tools, and inventory. It may also cover losses due to theft or vandalism.
- Business Interruption – Typically helps protect the business from losses due to a temporary shutdown caused by a covered event, such as a fire or natural disaster.
- Garagekeepers Coverage – Typically helps protect the business from damage to customers’ vehicles that are left in the business’s care, custody or control.
- Commercial Car Insurance – Typically helps protect the business’s vehicles and drivers in case of accidents, damage or theft.
- Workers Compensation – Typically helps protect the business from lawsuits and claims for damages or injuries that employees may experience while on the job.
Garage and Business Insurance with Fearnow, Serving Florida
At Fearnow insurance, serving Florida, we understand that you want great insurance that fully covers your business while still being affordable. That’s why our insurance agency offers comprehensive and customizable insurance for auto garages, repair shops, towing companies and car dealerships.
Our business and commercial insurance policies include business liability, commercial property insurance, commercial vehicle insurance, tow truck insurance, workers compensation insurance and commercial umbrella insurance. For most vehicle-centric businesses, we recommend starting with a BOP policy and a garage liability policy. BOP stands for Business Owners Policy, and it includes property insurance, business interruption insurance and liability protection. Your garage insurance policy will cover all the items listed above, and finally, you should consider a gatekeepers policy, which helps cover damage to customer vehicles. Along with these types of insurance coverages, our agents can also listen to your needs and the specifics of your business to determine if you need any additional coverages. It is in this way that we can help you get the business insurance you need to feel financially protected in the event of unforeseen circumstances.
To learn more about the types of insurance we offer and to get a quote, give us a call at 813-689-8878.