Collisions with multiple vehicles Other accidental damage Hail, wind and other extreme weather
What is garage keepers insurance?
Auto service centers assume substantial liability when they keep customers’ vehicles on their lots. Should customer vehicles be damaged or destroyed, the service center would likely be held financially responsible for the loss. Moreover, many vehicles could be damaged during a theft, hail storm or other incident. One way that Massachusetts service centers might protect themselves from this type of risk is by procuring garage keepers insurance.
Garage keepers insurance is commercial insurance that protects against the risks associated with keeping customer vehicles. Policies usually cover the cost of repairing or replacing damaged vehicles.
What businesses in Massachusetts should consider purchasing garage keepers liability?
Most Massachusetts businesses that store customer vehicles should carry garage keepers liability. Few (if any) other coverages provide protection against damage to non-owned vehicles kept on premises.
The need for this insurance thusly applies to many different businesses in the auto service industry. For example, all of the following businesses probably should have this coverage:
New car dealerships that have service centers
Independent auto garages and mechanics
Quick oil change service locations
Tow truck operators and police departments that tow
Trucking companies with non-owned equipment
Depots where tractor-trailers are regularly parked
Valet parking services also might need garage keepers liability insurance, depending on the specifics of their business.
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What types of claims are protected by garage keepers liability insurance?
Exactly what claims a specific garage keepers liability insurance policy will cover are determined by the terms and conditions of that policy. Depending on terms, policies might cover claims arising from:
Collisions with multiple vehicles
Other accidental damage
Hail, wind and other extreme weather
Vandalism and theft
An insurance agent who specializes in garage keepers policies can help service centers check what incidents a particular policy covers.
Are customer belongings protected by garage keepers policies?
The majority of garage keepers policies exclude protection for customer belongings that are kept in vehicles. Most service centers have policies that leave customers responsible for their own belongings, as a result of this.
If coverage for customer belongings is specifically needed, though, some policies might offer it. A knowledgeable insurance agent can help businesses check whether a policy that provides the coverage is available to them.
Does garage keepers cover an auto service center’s owned vehicles?
Any vehicles that an auto service center itself owns normally aren’t protected by garage keepers’ provisions.
Although garage keepers generally covers customer vehicles, it’s actually a liability policy that’s primarily protecting against claims and lawsuits that might be filed if customer vehicles are damaged. It’s not a property policy with the traditional comprehensive and collision coverages that protect policyholder-owned vehicles. (Customer vehicles can include vehicles that commercial customers own.)
To protect vehicles that they own, auto service centers usually need standard commercial auto insurance. This is in addition to any garage keepers policy.
How much do garage keepers policies cost to purchase?
The premiums that insurance companies charge for garage keepers policies vary. The number of customer vehicles, typical value of customer vehicles, service center’s location, and service center’s recent claims history are merely a few of the details that can impact premiums.
To find out how much a garage keepers policy will be in a specific situation, auto service centers should compare customized quotes with an independent insurance agent. Independent agents can get customized quotes from several insurance companies.
How can service centers in Massachusetts find garage keepers insurance?
This material is for informational purposes only. All statements herein are subject to the provisions, exclusions and conditions of the applicable policy, state and federal laws. For an actual description of coverage, terms and conditions, please refer to the applicable insurance policy or check with your insurance professional. The illustrations, instructions and principles contained in the material are general in scope and, to the best of our knowledge, current at the time of publication.