Two Insurance Policies for Repair Shop or Garage Needs
Whether you own a repair shop or a vehicle storage facility, making sure you have the right insurance coverage to protect your customer's vehicles is a must. When it comes to coverage, there are two basic policies that will apply. The following guide can help you better understand them so you can make an informed decision when shopping for insurance.
Vehicle Liability Policies
Liability policies for garage owners are typically only necessary for repair shops or similar businesses where your staff will be working on or transporting the vehicles. For a non-valet parking garage, this policy may not be necessary unless you have equipment in operation that could damage a vehicle.
A vehicle liability policy covers damages to your client's vehicle with the following causes:
- An accident or damage caused by a staff member.
- Faulty products or parts supplied by your garage.
- Property damage from work performed.
- Any damages caused by company equipment.
This policy does not necessarily cover bodily harm and liability, as it generally only protects the customer's equipment. There are some comprehensive liability policies available, but you need to verify with your insurance provider that this is the case. Otherwise, purchase a separate policy for bodily harm.
Garage Keeper's Policies
The garage keeper's policy isn't there just to protect the customer, but to protect you and your business. Not all possibilities of damage to a customer's vehicle come from work performed. Flood, fire, storms, and theft are real risks for any property owner. Your standard business policy may not provide sufficient protection from these catastrophes, since business policies are typically designed to protect company assets but not customer property. This isn't acceptable when your business is responsible for something as valuable as a car.
The garage keeper's policy will cover your customer's damages in the event something occurs. This protects you from lawsuits, thus protecting your business from bankruptcy. Keep in mind that these policies usually only cover the car itself—not any belongings the customer leaves in the car. For this reason, make sure customers empty their cars when dropping them off so that you can not be sued if something happens. If this isn't possible, then you must make it clear that your garage is not responsible for any theft or loss of personal belongings.
Although these aren't all the policies a garage can have, they are some of the most important. Contact an insurance company near you to learn more about garage insurance coverage.
