• Auto body shops
• Tow truck operators
• Property damage liability
• Bodily injury coverage
Almost all Vermont businesses are exposed to liability risks that could result in lawsuits, and the exact risks a business face commonly depend on its industry. Garage liability insurance is designed to help automotive repair shops shield themselves from many of the general and specific risks they face.
Garage liability insurance is a specialized commercial liability insurance that’s tailored to meet the needs of repair shops and similar businesses. Like other liability insurances, garage liability will typically help pay legal defense fees and settlements that arise from covered third-party lawsuits. The insurance will usually begin paying when a covered civil suit is filed and regardless of the ultimate outcome of the case.
Premiums for garage liability coverage vary because they’re based on multiple factors. Annual revenue, chosen limits and chosen deductibles will all impact how much a policy is, as can other factors.
For an accurate idea of how much garage liability coverage will cost in a specific situation, businesses should talk with an independent insurance agent. Independent agents aren’t captive to one insurance company, so they can request quotes from multiple insurers. This makes the process of comparing customized quotes easy.
A wide range of automotive repair shops and similar businesses can benefit from the protections that garage liability coverage. This type of insurance might be appropriate for:
Moreover, Vermont businesses that offer any of these services alongside other services likewise probably should carry garage liability. For example, an auto dealer that has a service center can likely benefit from the coverage. A hotel that has an in-house valet might too.
Any business that’s unsure whether this coverage makes sense for them can speak with an insurance agent who specializes in the protection. An informed agent will be able to help a business decide whether garage liability does indeed provide protections that are important to the business’ situation.
Garage liability coverage and garage keepers coverage provide two distinct protections, and there generally isn’t overlap between the two aside from the similar names.
Garage liability coverage normally covers common accidents that could occur during an auto shop’s (or similar business’) operations. The coverage may project against third-party injuries from slip and fall accidents, property damage caused by the business' equipment, damage caused by manufactured or sold products, discrimination claims, defamation claims and a host of other liability risks. Exactly what incidents and claims are included within a particular policy's coverage depends on the particular terms, conditions and exclusions of that policy.
Garagekeepers coverage normally covers customers’ vehicles while they’re kept on an auto shop’s premises. Should these vehicles be damaged, the coverage will likely provide compensation to repair or replace the vehicle. In most cases, the kinds of damage covered include perils like fire, extreme weather theft, vandalism and other accidental damage -- these sorts of incidents typically aren’t covered under liability because they aren’t necessarily a business’ fault.
Most auto shops should consider both garage liability and garagekeepers coverage. They each provide what may be important coverages for these types of businesses.
For help purchasing garage liability insurance in Vermont, contact Paige & Campbell Insurance. Our independent agents have worked with many automotive businesses, and we’ll help you find the right insurance you need.