Garage Insurance

I’m pleased to announce we have begun to receive e-mail feedback from this column.

David W Scott posed the first question:

“I saw recently a packaged Business Owners Policy for an auto paint and body shop which had been endorsed with garagekeepers coverage, but did not say anywhere the $1M/$2 M liability on the policy would also extend to the employees driving the vehicles in/out and around the shop. Is there a garage liability endorsement that should be added to the coverage page?”

When was the last time you took a close look at your garage liability policy? Well, that’s too long ago!

Seriously, I suggest you get it out for just a minute to read the Item One section, Named Insured, on the Garage Declarations page. It’s so easy to skip over this section but it’s vitally important for your business.

If you have ever lent a car or provided a loaner vehicle and the borrower had an at-fault accident, you have likely experienced the liability headaches associated with the practice.  Even if you haven’t had personal experience with the perils involved, a knowledgeable garage insurance agent has mentioned them to you on multiple occasions.

A couple of days ago, a new dealer came into our office in search of a bond and insurance for his business.  Once he had his bond in hand, he sat down to talk with an underwriter, and I overheard a conversation that went something like this.