Garage Liability Insurance
Garage liability insurance is specialty insurance targeted to the automotive industry. Automobile dealerships, parking lots or parking garages operators, tow-truck operators, service stations, and customization and repair shops will add garage liability insurance to their business liability coverage. The policy protects property damage and bodily injury resulting from operations.This insurance is not the same thing as garage-keepers coverage.
Garage Liability Insurance
Definition
Garage liability insurance is a type of insurance specifically designed for the automotive industry. It provides coverage for car dealers, parking lot or garage operators, tow truck operators, service stations, and custom modification and repair shops, protecting against property damage and bodily injury caused by business operations.
Origin
The concept of garage liability insurance originated during the rapid development of the automotive industry, particularly in the mid-20th century. As the number of vehicles increased, related service industries also expanded rapidly. To address the various risks that might arise during operations, insurance companies began offering specialized garage liability insurance.
Categories and Characteristics
Garage liability insurance mainly falls into two categories: basic liability insurance and extended liability insurance. Basic liability insurance typically covers third-party property damage and bodily injury caused by business operations, while extended liability insurance may include additional coverage such as legal fees and specific compensations.
Characteristics:
- Wide coverage: Includes property damage and bodily injury.
- Multiple applicable entities: Suitable for car dealers, parking lots, tow truck operators, etc.
- High flexibility: Different coverage options can be chosen based on specific needs.
Specific Cases
Case 1: A car dealer held a test drive event, during which a vehicle lost control and injured a pedestrian. The garage liability insurance provided coverage for legal fees and compensation for the dealer.
Case 2: A parking lot had a slippery surface that caused damage to a parked vehicle. The garage liability insurance covered the repair costs for the parking lot operator.
Common Questions
1. What is the difference between garage liability insurance and garage keeper's liability insurance?
Garage liability insurance mainly covers property damage and bodily injury caused by business operations, while garage keeper's liability insurance focuses on the loss of vehicles during storage.
2. Does garage liability insurance cover employee injuries?
Typically, it does not. Employee injuries are usually covered by workers' compensation insurance.
