Auto Dealer Operations

 

Garage operations are businesses that have hybrid coverage need. With such businesses, the lines between the general liability for the operations and the automobile liability exposures blur and overlap. A general liability policy does not provide enough coverage and a commercial auto policy provides too much. Fortunately there is a way to properly handle this need. The Auto Dealers Coverage Form contains premises liability, products liability, automobile liability and automobile physical damage coverage. Operations that should be protected by this policy include the following:

  • franchise and non-franchise auto dealers
  • truck dealers
  • motorcycle dealers
  • snowmobile and recreational vehicle dealers
  • new and/or used trailer dealers
  • vehicle repair shops
  • service stations
  • storage garages and
  • public parking places

 

The Auto Dealers Coverage Form is flexible, having the ability to cover a wide variety of automobile loss exposures. Besides covering vehicles that are owned by the covered business, it may also cover vehicles that are non-owned (rented or borrowed), trucks and other non-private passenger vehicles, trailers and mobile equipment. Coverage may even apply to vehicles that are privately owned by employees, but were involved in a work-related loss; say an employee who has a collision in his personal car while returning from picking up lunch for his boss and co-workers.

An Auto Dealers policy may also be written to customize how coverage applies to different types of vehicles. For instance, Joe’s Towing Service has a fleet of four tow trucks, as well as a sedan used by the owner. The towing service also does repairs and regularly has customer vehicles on their premises. Rather than having both liability and physical damage on all cars the services either owns or handles, Joe selects the following:

  • Liability and Physical Damage – for his two newer tow trucks and his sedan.
  • Liability only – for his two, older tow trucks
  • Physical Damage Liability only – for vehicles belonging to customers

Like other types of policies, an Auto Dealers coverage form also provides legal defense coverage. In other words, the policy handles the costs associated with defending the policy owner against claims and lawsuits. This protection does not affect the separate limits of insurance that are selected for the liability coverages.

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Garage Liability Coverage

 

Garage Liability Insurance

The coverage, it’s in the detailing

 
What is Commercial General Liability

Great Garage Liability insurance comes from understanding the details

Regardless of the business, you’re in, it is likely, that you will need general liability coverage. Commercial General Liability (CGL) protects your business against claims made by third parties.
At times justifying insurance can be a challenge. Customers are not buying a commodity or a product. Many will classify insurance as a service. But the truth is, insurance is not a commodity, product or service. The insurance transaction is very much one-sided. The insurance company gets your money. As a result of the transaction, the consumer gets nothing more than a promise.
When you buy the insurance you are actually buying a promise. You exchange an insurance premium, for a promise of indemnification.

 

Liability insurance cost; the cost of staying in business

You may need garage liability insurance, garagekeepers insurance and possible general liability insuranceThe value proposition for liability insurance is driven in large part on MAGNITUDE! Today seven-figure liability claims are not unheard of. Magnitude is the reason that your Commercial General Liability policy is essential. It should be a major component of your risk management plan.
CGL Insurance provides very broad coverages, but it comes with many exclusions. Automobiles; auto liability is covered under the Commercial Auto Policy. Also Professional Liability insurance, which comes under various names. E&O, D&O and Medical Malpractice are few. There are other professions that need liability policies. Policies specifically designed for the unique exposures that they face.
Professions that work with customers vehicles have specific liability Is garage liability insurance the same as general liabilityinsurance needs. Mechanics, auto body repair shops, and other’s need what is known as Garage Liability Insurance.
Vehicles not owned by the insured are not covered by either the CGL or the Commercial Auto Policy. The Garage Liability Policy fills this gap, providing the insured with coverage for incidents that occur on the premises. On-premises is key. It is important to remember that this coverage does not extend beyond the place of business.
 

Garage Liability is often confused with Garagekeepers and vice versa

Earlier we noted that Garage Liability covered on-site incidents. Does your business take customer vehicles on test drives? Do you drive customer vehicles to other locations? How about pick-up and delivery of customer vehicles? If your businesses drive customer vehicle off premises, you need a Garagekeepers policy. For more information on Garagekeepers Coverage forms see:

TruePoint’s on target review of Garagekeepers Coverage.

 

Garagekeepers or Garage Liability,  as clear as spent motor oilGarage insurance is a form of liability insurance aimed at garages. auto dealers, auto body shops and other business servicing auto owners

Business Liability insurance can get confusing. That’s why it is important for business owners to do some work on their end. It’s wise to invest some time on the front-end finding a good agent. Working with an independent agent increases your chance of success.

Working with an independent agent is even more important for businesses. The group combines to write nearly 85% of the insurance written in the US. 85% of the market makes it difficult for anyone other than an independent to agree their case. Garage Liability insurance coverage.
Identifying the right independent agent might be a little tough. Don’t be afraid to quiz them. Use your understanding of General Liability, Garagekeepers, and Garage Liability coverages. Put prospective agents to the test by asking them to suggest coverages.
The finish line is in sight. Choose the right path for you and your business to secure the necessary coverage.
 
Don’t feel bad if you’re still feeling a little confused. Many in the insurance industry have trouble with this topic. Who needs Garage Liability?
 

Garage Liability……working at your garage

Garage Liability insurance coverage will not cover test drivesGarage liability covers your customer vehicles. This coverage will not cover you if the vehicle leaves your place of business. Damage that occurs offsite will not be covered. Drive, tow or levitate the car to another location. It doesn’t matter, damages will not be covered. It is not uncommon to see Garage Liability policies with Garagekeepers.
 

Garagekeepers……keep the Garage Liability, you will likely need it too

Do you test drive customer's cars?  If you answered yes, you will need garagekeepers liability insurance

 

Garagekeepers coverage picks up some essential coverage not included with the Garage policy. Collision is the primary addition, protecting the garage for off premises accidents. It also adds a few other exposures that would include, fire, theft, vandalism. Garage liability is seldom used without an associated garage policy.
 
Who needs Garagekeepers? And who needs both…

CAN YOU HAVE BOTH?

 
Yes, you can have both. And it’s not uncommon.  If your business falls into one of the following classes it is highly likely that you should have one if not both of the Garage coverages:
 
Gas Stations
 
Auto Mechanics
 
Auto Dealerships
 
Car Wash
 
Farm Equipment Dealers
 
Auto Body Shops
 
Parking Lots
 
Valet Parking
 
Mobile Auto Service
 
Tire Dealers
 
Driveway Contractors
 
Towing
 
ATV Sales & Service
 
…….and many more auto-related industries
 
TruePoint Insurance Group, LLC
buy garage insurance with TruePoint Insurance
Click to learn more
or call (502) 410-5089
6287 Taylorsville Rd.
 
Fisherville, KY 40023
 
(502) 410-5089