Garage keeper Insurance vs. Commercial Liability Insurance

Last time we chatted, we talked about tool coverage! Today we are giving our sixth tip in the Garage & Towing series from our guy, Mike Hughart.

Today we are going to go over the difference between Garagekeeper’s and Commercial Liability.

Let’s dive right in!

If you own a business, you probably already know what Commercial Liability is but… we’d rather not take that chance so here is an overview.

Business liability insurance protects a company and/or business owner in the event of a formal lawsuit or any third-party claim. Coverage includes any financial liability incurred in addition to expenses related to the company's legal defense. There are three main types of business liability insurance: general liability insurance, professional liability insurance, and product liability insurance.

Example 1:

You just washed the floors in your waiting room. You put the “Wet Floor” sign up to inform waiting customers to use caution when walking around. A new customer walked in to drop their car off, was walking too fast, missed the sign and took a hard fall. While trying to catch themselves, they dislocated their shoulder and broke their arm. You call your insurance agent, explain what happened and the precautions you took to prevent injuries. Your agent assures you that they submitted a claim to your insurance company, and they would get in contact with the customer ASAP. The customer incurred over $10,000 in medical expenses when it was all said and done. Luckily, you had a Commercial Liability insurance to help cover these expenses.

Okay, now that we have covered Commercial Liability, let’s go over Garagekeepers!

Coverage provided under a garage policy for auto and trailer dealers, particularly those dealers that maintain a service department or body shop, for liability exposures with respect to damage to a customer's auto or auto equipment that has been left in the dealer's care for service or repair

While the definition is directed towards dealers, this coverage is also meant for those in the auto repair or towing industries. Let’s look at a couple of scenarios that would help paint a picture of this coverage!

Example 1:

Your customer’s car is in your garage getting work done. Its currently up on a lift. The hydraulics on the lift malfunction and the car ends up slipping off the lift leaving extensive damage not only to your shop but the front end of your customer’s car. Your customer is very upset, rightfully so. You give your agent a call to submit a claim. You let your customer know that a representative from your insurance company will be getting in touch with them as your Garagekeeper’s insurance will cover the costs of the damages to their car. Your customer leaves with a peace of mind.

Example 2:

You got called out to a car accident and need to tow the vehicle back to your shop and hold it there until the insurance adjuster can come out and asses the damages. The next morning you wake up to a notification from your security cameras. Some snuck in over night and stole the vehicle that was involved in the accident. How do you explain this to your customer? First, you make a call to your insurance agent and submit a claim. They assure you that this will be covered under your Garagekeeper’s policy and that someone will be in contact with you and your customer.

Now… can you see the difference between the two types of coverage? Both are unique and both are necessary to any business in the Garage & Towing industries.

Let Mike help you rest easy at night knowing you have the right protection in place for your business. Click the link below to make things simple!