Garage Liability vs. General Liability: What Does an Auto Shop Need?
What Is the Difference Between Garage Liability and General Liability?
Both are liability coverages, but Garage Liability is specifically designed around the business operations of automotive service and repair businesses.
Everyday Business Liability
General Liability may address certain third-party bodily injury, property damage, personal injury, and premises-related claims arising from normal business activities.
Liability Connected to Garage Operations
Garage Liability is generally structured for businesses that sell, service, repair, park, or otherwise work with automobiles and may address qualifying liability arising from those garage operations.
Working on Customer Vehicles Creates Specialized Exposure
An automotive shop does more than operate from a commercial location. Employees may move, repair, inspect, test-drive, park, tow, or store vehicles that belong to customers.
A customer may allege that faulty repair or maintenance work contributed to an accident, mechanical failure, property damage, or bodily injury.
Employees may drive customer vehicles before or after service to diagnose problems, verify repairs, or confirm that work was completed properly.
Customers may be exposed to lifts, tools, moving vehicles, slippery floors, work areas, parking lots, and other hazards while visiting the shop.
Moving vehicles around the premises, pickup and delivery, valet-type handling, roadside work, or other auto-related services may affect the appropriate coverage structure.
What Should an Auto Repair Shop Review?
The right garage insurance program should reflect the services performed, customer vehicles handled, employees, property, equipment, and other exposures of the actual operation.
Disclose mechanical repair, body work, tires, brakes, transmissions, oil changes, detailing, towing, diagnostics, customization, and other automotive services.
Review protection for qualifying physical damage to customer vehicles while they are in the shop’s care, custody, or control.
Identify employees who move or test-drive vehicles and review driver qualifications, licensing, driving records, and company procedures.
Consider shop size, customer traffic, vehicle values, operations, contracts, property exposure, and potential claim severity when reviewing limits.
Does Your Liability Coverage Match the Work Your Auto Shop Performs?
Best Formula Insurance can help auto repair shops, garages, body shops, tire shops, service centers, and related automotive businesses review Garage Liability, Garagekeepers, property, Workers’ Compensation, Commercial Auto, and other insurance needs.