Garage Liability

What is Garage Liability?

If you are looking to obtain your Dealers License to sell new or used vehicles, you will be required to have Garage Liability Insurance. Think of Garage Liability insurance as car insurance for your dealership. It provides liability coverage while you are driving those vehicles you hold for sale around such as on test drives, to and from auctions, to the mechanics, etc. Physical Damage coverage (comprehensive & collision) can also be added onto the policy to give you “full coverage.” This is usually required if you are working with a floorplan company or if you are looking to protect the vehicles you own from physical damage.

What is Garage-keepers Coverage?

Garage-keepers coverage will protect you from claims you are legally obligated to pay as a result of loss or damage to a customer’s such as fire, theft, and vandalism while in your care for servicing, repair, parking, or storing. You will need this coverage if you are keeping your customers vehicles in your care such as auto mechanics, repair shops, or any type of venture that keeps or works on cars that are not registered to the business. 

How is coverage written?

The premium is based on a number of things such as the number of employees, amount of coverage you are requesting, if you have had any prior losses, and even the territory you are in. A fully completed application is required to get a quote. A motor vehicle record will be run on each driver to ensure they have a valid drivers license. A surcharge may be added for any driver or employee found with accidents. 

Please Note: If you have had prior Garage Liability insurance in the past, we will need a copy of your “Loss Run Report.” This can be obtained by contacting your previous carrier or agent and requesting a copy.

If you or your business needs help in obtaining a surety bond or commercial insurance give us a call!