If your business operates in the auto service industry, you’ve probably heard of garage keepers liability insurance. Although this policy has overlapping coverage and terms with general liability insurance, they are two different types of policies with contrasting legal implications. They are essentially designed to work together to provide companies with comprehensive coverage. In this blog, we will break down everything you need to know about garage keepers liability insurance.
What Is Garage Keepers Liability Insurance?
Garage keepers liability insurance is a special form of insurance coverage designed to provide financial protection for vehicles that are in your possession but you don’t own. It’s specifically made for businesses that own and operate a garage.
This form of insurance helps pay for damages that may occur to a customer’s vehicle. For example, if you operate an auto repair shop and one of your employees accidentally damages a customer’s vehicle, garage keepers insurance will help cover the costs of damages. Depending on the insurer and policy you purchase, garage keepers insurance can help cover damage to cars, vans, and trucks alike.
Difference Between Garage Liability & Garage Keepers Liability
It’s very important to note that there is a key difference between garage liability and garage keepers liability insurance.
The main aspect that separates the two is that garage liability only covers your business from accidents that occur in the course of business operations, so something as an employee slipping and injuring themselves. Garage keepers liability specifically covers damages to a customer’s vehicle.
Whether the customer’s vehicle is being worked on or just stored, garage keepers insurance will help protect your business from any covered damages that occur while the vehicle is in your care. Think of garage keepers liability insurance as an extra cushion of protection for your business.
What Garage Keepers Insurance Does NOT Cover
As beneficial as garage keepers insurance is to businesses in the auto service industry, this policy doesn’t cover everything. Some common exceptions of garage keepers insurance include:
- Faulty workmanship
- Defective vehicle parts
- Personal possessions customers leave in vehicles
- Theft of a vehicle by an insured
- Loss of non-permanently-installed stereo parts
When paired with general liability insurance, garage keepers insurance allows you to relax knowing your shop is fully protected in case of an accident.
Still Have Questions? Ask KF&B Insurance
Knowing the difference between all the types of auto-related insurance coverages will help you and your business make the right decision. However, with the abundance of different coverages in today’s insurance world it can become difficult to keep track of all the important details.
If you have any questions regarding garage keepers liability insurance, KF&B Insurance is here to help. Our team holds niche expertise in the transportation industry. We have the knowledge to guide you through all your auto-related insurance coverage questions. For more information on how we can be of service to you, please contact us today.