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Liability Insurance FAQ
     Get Straight Facts

Garage Liability Insurance

Purchasing various insurance policies is simply a part of doing business. Any person or organization that owns a car repair shop, gas station, tire dealership, car wash, or used car dealership should make garage liability insurance one of their top priorities.

This very specific type of insurance coverage protects the business owner under a variety of circumstances. It may cover the business in the event of: a customer who slips and falls on the premises, an applicant who claims discrimination in the hiring process, or a customer who claims faulty service. Any of these events could represent a significant financial loss to the business unless they have purchased sufficient coverage.

Garage Liability Insurance - What is Covered?

Businesses which purchase this type of insurance should have a clear understanding of exactly what is covered by this policy. For instance, this insurance probably covers any vehicles that the business owns, but it likely does not cover the customers’ cars which are left on the premises. For the customers’ cars to be covered, the business would also need to carry garage keepers’ insurance, which is generally a separate policy, though it is often sold in conjunction with garage liability insurance.

These policies are specialized to fit the operations of the particular business. Since a variety of companies providing diverse products and services may have need for these policies, that each one is individually tailored to meet that business’ needs. For this reason, the cost of these policies can differ greatly from one business to the next. Also, a particular company may have reasons for seeking greater coverage, and can therefore expect to pay higher premiums.

Garage Liability Insurance - What You Should Know

The insurer will look at the type of business the company does, the number of employees that work on the premises, the safety and condition of the premises, and the driving history of all employees when determining insurance rates. Once the coverage is in place, the company will be covered in the case of any injury or damage claims that may be brought against it.

Owning a business is a risky venture. This is especially true for businesses that take care of customers’ cars. The value of the vehicles involved and the type of equipment used can easily lead to claims of damage or injury that could endanger the existence of the company. With garage liability insurance, however, the company is covered against damages claims and can get back to doing its everyday work.