GARAGE INSURANCE: Definition, Cover & How it Works

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If your company deals in vehicles, you’ll require garage liability insurance. It is critical for automobile businesses, ranging from towing and auto body shops to vehicle dealerships and service stations, to assess the level of risk they face and then obtain the appropriate protection to mitigate these hazards. However, garage contents insurance does not just protect third-party vehicles; it also covers company-owned vehicles. Continue reading to find out what lock-up car garage insurance is, its policy, and what it covers.

What Is Garage Insurance?

So, what exactly is garage insurance? Garage insurance (GI) is a sort of policy intended specifically for people who work in the automotive business. Parking garages, parking lots, automobile customising shops, repair shops, and other businesses may fall under this category. Your business is protected from bodily injury and property damage as a result of business operations with car garage contents insurance.

Garage liability insurance is a sort of umbrella policy that provides additional liability coverage beyond standard limits. Business owners can reduce their risk of financial ruin by adding an extra layer of protection in the event that a person or property has issues while performing day-to-day operations. Regular commercial or business liability policies often do not cover the coverage provided by garage insurance.

How Garage Liability Insurance Works

Garage liability insurance is a sort of umbrella policy that covers the day-to-day activities of automotive companies. This insurance will supplement the general liability policy of the company. Bodily injury and property damage resulting from direct garage activities Which is not covered by most commercial or business liability insurance.

Before purchasing a policy, be sure that the garage liability coverage complements, rather than simply replaces, the business owner’s normal business liability coverage.

Customers who are injured while on the premises of the business will be covered up to the policy limits. In addition, most car garage insurance policies include an employee dishonesty provision for theft or vandalism committed by a customer’s car’s employee. Any autos used in the conduct of business, like courtesy vans and parts delivery trucks, may be at an additional cost. Damages from company-sold components or products, as well as coverage for loss caused by faulty parts put on a client’s vehicle, are examples of additional protections.

The policyholder’s tools, building, personal, or business property are not by garage liability insurance. It excludes coverage for vandalism, stolen automobiles, and damage caused by natural disasters like hail. In addition, every basic and optional policy item will have a maximum liability coverage amount indicated, as well as aggregate limits by claim or year.

Commercial general liability (CGL) insurance policies cover a wide range of risks. This insurance may include premises coverage, which protects the company from claims made on the premises during normal business activities. Coverage for bodily injury and property damage caused by finished products may also be included.

What Does Car Garage Liability Insurance Cover?

Not every garage contents insurance policy provides the same level of protection. A conventional garage liability policy only protects you from bodily injuries that occur on your property. For example, if a customer slips and falls while going through your store, you may be liable for the resulting medical expenses. These medical expenditures would be covered by your garage insurance policy up to the policy’s set maximum.

Liabilities arising from regular business operations, such as when an employee files a discrimination claim, are frequently covered by garage liability plans. Your insurance may also include a dishonesty clause that covers the theft or vandalism of customer vehicles by dissatisfied employees. The following are often covered by garage liability policies:

  • Injuries to third parties
  • Discrimination cases, for example, are liability claims.
  • Employee deception
  • Property damage caused by company-owned machinery

Garage liability insurance is frequently included with garage-keepers insurance. These are two distinct policies, each with its own set of terms. GI keepers cover you if a customer’s vehicle is having issues while it is at your location. Standard garage liability policies do not usually provide this coverage. Coverage is only available under garage-insurance keepers if specific dangers exist in damage. Such as theft, fire, extreme weather, vandalism, or accidental damage, such as a collision with another car.

What What Does Car Garage Liability Insurance Doesn’t Cover?

While garage liability insurance provides substantial coverage for company owners, it is not completely comprehensive. Certain things are normally not covered by your insurance coverage. For starters, most garage liability policies do not cover employee injuries. It is for this reason that workers’ compensation exists. It also won’t cover any damage to the garage. You’ll need commercial property insurance for this.

Client property, such as automobiles brought into your shop for repairs or other services, is not covered by garage liability insurance. A garage-liability keeper’s policy requires coverage for client automobiles. Any residual amount is normally not covered by your garage liability insurance coverage, which covers less than the total worth of the losses associated with theft, repairs, or third-party physical injuries.

Who Should Acquire A Garage Insurance Policy?

You may be wondering if you actually need GI now that you know more about it. Insurance like this can be extremely beneficial if you own a business that deals with cars. This includes businesses such as emissions testing stations and valet services, as well as firms that repair or alter vehicles. In a nutshell, garage liability insurance covers any company that sells, transports, or repairs automobiles.

Landlords who want to protect their assets should a particular business activity result in a claim may seek garage liability insurance. Having the right liability insurance might also give you peace of mind. Keep in mind that GI does not only apply to ordinary vehicles such as cars and trucks. Individuals or fleets of motorbikes, trailers, and tractor-trailers can also be included. Although garage liability insurance is not required in most jurisdictions, having it could save your business from financial ruin.

What’s covered in contents insurance ?

If you have house contents insurance, the contents of a garage or shed will be insured as well. However, there are several exceptions to this rule, and most insurers are hesitant to insure any costly goods you keep locked away at night outside of the main property building.

Even if you have both types of home insurance, the level of coverage you will likely receive on your garage or shed has a number of limitations. As a result, it’s critical to review your policy’s terms and conditions and make adjustments to the security and construction of your outbuilding.

What won’t be covered by shed and garage contents insurance?

Some things, such as bicycles, will not always be covered, or they will want them to be secured further even if they are in a safe shed or garage. Although a bicycle may be up to a specific amount. They could be less willing to pay the whole sum if there was no lock on it at the moment.

Similarly, if your shed was built some years ago and is in generally poor shape, the insurer may not think it was worth the money you paid for it in the first place if you file a claim because it was destroyed by a flood or a falling tree.

Will Home Insurance Cover Your Lock Up Garage?

When it comes to home insurance, your lock-up garage insurance is typically only available if it is within your property’s limits. This means that if you store your possessions in a locked garage, your house insurance will most likely not cover them.

This means you’ll need to call your insurance provider to talk about how you can protect your things by acquiring the appropriate insurance.

Keeping Your Lock Up Garage Safe

There are a number of things you can do to ensure that your lock-up garage is safe and secure. Which will help you with any insurance claims you may need to file in the future.

It’s critical that you utilise these padlocks rather than replacing them with your own because they’re covered by insurance. You must seek approval in writing if you want to use additional padlocks.

It’s also critical to keep an eye out for any potential damage and report it, as issues can escalate into more serious problems. A little leak in the roof, for example, might quickly evolve into major structural damage. Perhaps causing harm to your things if heavy rain hits.

It’s also worth considering whether you’re advertising the contents of your garages adequately. If you keep a motorcycle in your garage and take it outside to work on it on a regular basis. Others near you are now aware that a motorcycle is inside, posing a temptation to would-be thieves. When you’re in your locked garage, it’s crucial to be mindful of your surroundings and avoid displaying your belongings to passers-by.

Lock Up Garage Insurance Policy

Lock Up garage keepers insurance is a separate policy that covers damage to a client’s car while it is in the policyholder’s possession. This can include damage sustained during road tests and while the vehicle is being stored during non-working hours. Vandalism and theft of a customer’s car will be by the keeper’s insurance. Policies must be for each location in a company with many locations.


Is general liability included in garage liability?

Coverage for general liability should be among. Because garage-based enterprises engage with the general public, they run the danger of causing damage to others as a result of the garage’s traffic.

What are garage operations?

Garage operations are businesses that deal with the automotive industry and have a significant risk of being there for car accidents. Auto sales, auto repair, and towing are all examples of this.

Does Garage Liability cover faulty workmanship?

Garage liability insurance does not cover bad workmanship, and there is no way to add an upgrade endorsement to cover it.

What is a garage keeper policy?

This is optional coverage for business owners who provide towing services or run gas stations.

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This is optional coverage for business owners who provide towing services or run gas stations.

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