Garage insurance is designed to protect garage owners against different types of liability. Any business that involves working on or around vehicles needs this type of insurance, particularly a mechanic business. Our knowledgeable agent can advise you on the garage insurance your mechanic business needs and help you find the best available rates.
What Is Garage Insurance?
Garage insurance is specialized general liability insurance for the automotive industry. It covers medical bills, personal property damage, and legal fees associated with third-party claims arising from incidents on the business premises or business interactions. Garage insurance is a specialized type of insurance due to the potential for increased risk of injury to customers or bystanders.
What Does Garage Insurance Cover?
The primary type of coverage garage insurance provides is general liability, which covers third-party bodily injury and damage to or theft of machinery. Also called repair shop insurance, garage insurance pays for third-party claims if someone is injured, for example, in a slip or trip and fall accident on your business property. It also covers damage to personal property, such as a laptop or a phone belonging to a customer or a bystander. Most garage liability insurance policies cover liability arising from general business operations, such as an employment discrimination lawsuit filed by an employee. This type of insurance also pays if an employee of your shop steals or vandalizes a customer’s vehicle.
Additional Garage Insurance Protection For Faulty Parts
Garage liability insurance protects your mechanic business from liability for parts sold by your shop. This coverage includes property damage caused by faulty parts installed in a customer’s vehicle. Claims are subject to a limit for each accident, as well as to an aggregate limit.
Garage Keepers Insurance
You may want to purchase garage keepers insurance, in addition to a general garage liability insurance policy. This coverage is purchased separately and may be added to your business insurance package. Garage keepers insurance covers property damage to vehicles while they are in the care, control, and custody of your shop. For example, if there is a fire while a customer’s car is being kept overnight in your garage, a garage keepers policy will protect you from liability.
However, a deductible applies to each vehicle damaged, and that can be costly if more than one vehicle is affected. Garage keepers insurance will also cover employees when they are test driving a customer’s vehicle, whereas a standard garage insurance general liability policy only covers other parties injured by your employee in the event of an accident.
How Much Does Garage Insurance Cost?
Garage insurance premium amounts can vary widely, depending on the amount of coverage and the garage owner’s particular situation. Rates are also affected by the deductible you choose – higher deductibles mean lower premiums. Insurance companies will look at:
- How many employees you have
- Their driving records
- Type of business you operate
- Location of your shop
- Level of on-site security
Our experienced agent can find you the best quote for the coverage you need to protect your mechanic business.