There are certain similarities and differences between garage insurance and garagekeeper liability insurance. The major similarity, and maybe the only similarity, is that the two coverages are needed in the establishments that are associated with using vehicles. The differences are several, and to understand the dissimilarities we will start with defining both concepts.
Garage Liability. This is necessary to deliver protection for bodily injury and property damage caused by garage activities. Garage activities refer to actions affiliated with ownership, maintenance, and use of sites for garaging businesses. Garage Liability incorporates two major insurance:
1. Garage Liability – Covered Auto: This is probably the most critical coverage that a garage establishments need to have. Garages have different auto liability exposure, and for that reason they may have to have different types of insurance. The insurance division provided a Symbol System for Auto Liability. This is a brief overview:
* SYMBOL 21 = Any Auto. This is the most broad symbol where coverage is applicable to any automobile.
* SYMBOL 22 = All Owned Autos. Coverage under this code applies to any and all vehicles that are owned by the establishment, including trailers that are pulled by the owned automobiles.
* SYMBOL 23 = Owned Private Passenger Autos Only. Coverage affiliated with this symbol includes all owned private passenger vehicles.
* SYMBOL 24 = Owned Autos Other Than Private Passenger Autos Only. Coverage here applies to other than private passenger type vehicles owned by an insured, including trailers pulled by an owned automobiles.
* SYMBOL 25 = Owned Autos Subject to No Fault. This symbol applies to any automobile which is owned by an insured in any no-fault states.
* SYMBOL 26 = Owned Autos Subject To A Compulsory Uninsured Motorist Law. This is applicable to any automobile that is owned by the insured in states where uninsured motorists is a compulsory insurance.
* SYMBOL 27 = Specifically Described Autos. Coverage is applicable to only certain automobiles that are specifically listed on the policy.
* SYMBOL 28 = Hired Autos Only. Coverage applies to vehicles that the insured leases, hires, rents, or borrows from any one who is not an officer, owner or employee of the business.
* SYMBOL 29 = Non Owned Autos Only. Coverage applies to vehicles that the insured does not own, lease, hire, rent, or borrow, but that are utilized in the business. This includes automobiles owned by own partners, staff, or any members of the business while these vehicles are used in the business activities.
* SYMBOL 30 = Autos Left for Service/Repair/Storage. This is applicable to autos which are left at auto service establishments for maintenance or repair.
* SYMBOL 31 = Autos on Consignment. Coverage applies to any and all autos left at the location of the insured for sale based on consignment basis. This does not apply to automobiles left at car dealers.
2. Garage Liability – Other Than Covered Auto: This encompasses components of the Commercial General Liability, other than automobile liability. CGL coverages such as premises (ie slip and fall) are usually insured here.
Garagekeepers Liability Insurance. This is physical damage coverage on customers’ vehicles that are left in the custody of the insured for repair or servicing. The coverage options are collision, comprehensive (any thing other than collision), specified causes of loss (fire, lightning, or explosion; theft; or mischief or vandalism).
Garagekeepers can be integrated as primary or legal. Garagekeepers Legal Liability (also called Garagekeepers Direct Excess, coverage applies to losses in excess of the auto owner’s coverage. To say it another way, the policy will pay after the client’s automobile policy pays, and only if the insured is legally responsible for the damage of the vehicle. Garagekeepers Primary Liability (also referred to as Garagekeepers Direct Primary,) the garage insured would share the loss with the auto owner’s insurer, regardless of who is at fault. Garagekeepers Primary Liability allows for more protection for garages.
Businesses Needing Garage Liability. The following are instances of businesses that need garage liability:
Towing Operations, Car Dealers, Mechanic Shops, Auto Body Shops, Valet Parking, Lube Shops, Car Washes, or any businesses that deal in the trade or service of with autos industries.
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