The Garage Policy:

A Garage Policy was originally designed to insure the risks associated with businesses which sell, service, store, or park vehicles designed for on road use.
 

Types of Coverage Included In a Garage Policy:

The garage policy provides coverage for:

• Auto Liability
• Physical Damage
• Commercial General Liability

Since all three types of coverage are combined into one policy, it is called a Garage Keeper’s Insurance Policy, and includes:

• Garage Keeper’s Legal Liability
• Garage Liability (Automobile Portion)
• Garage Liability (Non Auto Portion)

How Garage Keeper's Legal Liability Works:

This section covers the loss to a covered vehicle or equipment left in your care. When this insurance is on a 'Legal Liability' basis, claims will only be paid for the losses for which you are legally obligated to pay. An endorsement, known as a 'direct coverage endorsement' or 'goodwill endorsement' can be added to the policy, which would pay for all losses, even if your business is not legally obligated to pay.

The "Auto Portion" of Garage Liability :

Damage to Customer Vehicles

This section of the garage policy pays for physical damage which your business caused to a customer's vehicle. The auto portion usually has a deductible, normally $500 per vehicle.

Damage to Non-Customer Vehicles

This section provides coverage in the event that someone in your business is involved in an accident, causing personal injury or property damage to someone else, while driving a customer's vehicle. A $250 deductible is typical in this area.

The "Other Than Auto" Section of a Garage Policy:

This section of the Garage Policy would be similar to a Commercial General Liability Policy. This would provide insurance coverage for your business in the event a customer is injured on your business property.