There are some similarities and differences between garage insurance coverage and garagekeeper liability coverage. The most important commonality and perhaps the only shared feature is the fact that both coverages must be used in establishments that use vehicles. There are many differences, so we’ll start by defining each term.
Garage Liability. This insurance is required to protect against bodily injury or property damage that may result from garage activities. Garage operations are actions related to the ownership, maintenance and use of garaging sites. Garage Liability covers two main areas:
1. Garage Liability – Covered Auto: This coverage is the most important that garage businesses need. Different garages have different auto liability exposures, so they need different types of insurance. A Symbol System for Auto Liability was created by the insurance division. Here’s a quick overview:
* SYMBOL 21 = Any auto. This symbol covers all autos. * SYMBOL 22 = All Owned Autos. This code covers all owned vehicles, trailers and autos.
* SYMBOL 23 = Only for Private Passenger Vehicles. This symbol covers all private passenger cars that are owned.
* SYMBOL 24, Other than Private Passenger Automobiles, Owned Vehicles. This coverage applies to all vehicles other than private passenger types owned by an insured. It also covers trailers that are pulled by an own automobile.
* SYMBOL 25 = Autos owned subject to no fault. This symbol applies to all autos owned by insured persons in no-fault jurisdictions.
* SYMBOL 26 = Autos owned by the insured are subject to a compulsory uninsured motorist law. This applies to all autos owned by an insured person in states that have uninsured motorists as a mandatory coverage.
* SYMBOL 27, Specifically Described Automobiles. Only certain autos are covered by the policy.
* SYMBOL28 = Only for Hired Autos. The insured can lease, hire, rent, or borrow vehicles from anyone other than an owner, officer, or employee of the company.
* SYMBOL 29 = Only for non-owned vehicles. The insured is not allowed to own, lease, rent, borrow or hire vehicles, but they are used for business purposes. This covers automobiles owned or leased by employees, partners, or other members of the company while they are being used for business transactions.
* SYMBOL 30 = Autos Left for Service/Repair/Storage. This applies to vehicles that are left at an auto service business for repair or maintenance.
* SYMBOL 31 = Consignment Autos. All vehicles that are left at the address of the insured for sale on a consignment basis will be covered. This does not apply for autos left at dealers.
2. Garage Liability – Other Than Auto Covered: This includes features of the Commercial General Liability other than automobile liability. CGL coverages, such as premises (ie fall and slip), are often covered here.
Garagekeepers Liability Insurance. This insurance covers customers’ cars for physical damage if they are in the care of the insured. There are three types of coverage: collision, comprehensive (anything other than collision), and specified causes (fire, lightning or explosion; theft; mischief or vandalism).
Garagekeepers may be added as legal or primary. Garagekeepers Legal Liability (also known Garagekeepers direct excess) covers losses that exceed the vehicle owner’s coverage. The policy will only pay if the insured is legally responsible. Garagekeepers Primary Liability (also known as Garagekeepers Direct Primary) would allow the garage to share the loss with their insurer, regardless who is responsible. Garagekeepers Primary Liability provides garages with greater protection.
Businesses need to have garage liability. Here are some examples of businesses that require garage liability.
Towing Operations, Car Dealers. Mechanic Shops. Auto Body Shops. Valet Parking. Lube Shops. Car Washes. Any business that deals in the service or trade of automobiles.
