Are you shopping for affordable Garage Insurance or Insurance Services in California, regardless if your garage operations is located in Orange CA, or Fullerton CA? If so, than you understand that these specific establishments are not adequately covered on a standard general liability policy.
Businesses who fall under the “Garage Insurance” category include, businesses who sell, service, repair, park or store autos.
These establishments can be car dealerships, repair shops, service stations, mechanics, mobile home dealers, car washes, parking facilities, and other industry related businesses.
Liability Insurance Coverage
Thankfully, this specialty industry created a specific type of coverage that covers both the liability portion of your garage coverage policy. In addition, it also provides garage-keepers coverage which protects the possession of clients vehicles in your operation.
Garage insurance offers 3 basic kinds of coverage which are as followed: garage liability, garage-keepers legal liability and dealers physical damage coverage.
Supplementary schedules for auto dealers or for non dealers and trailer dealers, must be attached as an endorsement form to your Garage Coverage Form.
Garage liability includes coverage for premises and operations, products, non owned autos and under the dealers form, owned autos. These programs that our found under this policy are labeled auto dealership insurance programs.
The garage form attached on your Garage Insurance policy is similar in format and coverage description to that of a business auto insurance policy, with some notable exceptions of course. As with the policy, liability and physical damage coverage is provided .
Moreover Garagekeepers coverage, which includes additional coverage, provides protection for autos in the insured’s car lot or garage, and other exposures. The garage form has many similar definitions in the insurance language as you will find a business vehicle policy.
4 additional defined coverage options exist:
- garage operations
- loss of use
- work you performed
These coverage options can be found on your standard policy. For the most all carriers will have the same options or features, but you still want to make sure ask exactly what is being covered on your policy.
Review this type of coverage on your policy is of great importance. The coverage options you choose today will effect you with you should run into a claim or loss.
Some of the definitions that you will find in a business vehicle policy will vary in some degree compared to a garage policy. Under this form, the term “auto” is broadened to include vehicles that are not designed for off-road travel and also include mobile equipment.
Remember, this equipment it is also not specifically excluded as it is in a business vehicle policy. Two other definitions that are different in meaning under a garage policy include covered pollution and insured contract.
The condition in the garage form are however, almost identical to that found in the business vehicle coverage conditions.
The liability section of this policy is also more broad to that under a personal policy. The liability covers not only the vehicles listed on the policy, but also products, premises, and the work performed at the actual garage.
Two limits of liability exist which are, one for both an accident limit and an aggregate limit of coverage for operations other than covered autos. The second limit of coverage is for operations is the covered autos.
Because the overall coverage on the policy is broader, more exclusions than under a business vehicle policy exist to limit the specific coverage.
These exclusions include expected or intentional injury, any employee indemnification and employers liability, leased autos, watercraft or aircraft, defective products, work you performed, loss of use, products recall and liquor liability.
The section on your policy will also include what is known as Garage keepers coverage which provides liability coverage.
However, under the direct coverage options can also reimburse garage customers for damage to their vehicles regardless of fault, and without regard to any other coverage on the vehicles.
Physical Damage Coverage
This coverage also provides physical damage covering autos held for sale or company vehicles such as towing trucks. Garage-keepers legal liability provides coverage for loss or damage to.
Dealer’s physical damage can insure vehicles in stock for the perils of collision, fire and theft or comprehensive. It also allows for protection on a reporting or non reporting basis.
Types of Coverage
- Franchised and non-franchised car, truck, recreation vehicle or motorcycle dealers
- Auto repair shops
- Auto service stations
- Storage garages and public parking places
- Mobile home or commercial trailer dealers
Garage Insurance Coverage Options
This type of coverage policy will have separate coverage portions which will be examined in some detail below:
Bodily Injury and Property Damage
This portion of your policy handled in greater detail for auto dealers due to the rapid turnover of salespeople and other help involved in the operation. This coverage is made use of loaners cars and the potential of slip and falls throughout the premises.
Service Stations and Repair Shops
Service stations and repairs shops are also handled carefully as well. This is because many young people are traditionally hired within this industry. With respect to products and completed operations hazards, experience of mechanics should be investigated.
This is to ensure quality in absence of exposed risks and reduction of liability risks in the constant monitoring practice of hired mechanics.
Public Parking Lots
Public parking lots present problems if an attendant parking is present or if the premises are poorly maintained, since these factors increase the chance of risk. This portion of coverage falls under a Commercial General Liability policy as well.
Commercial General Liability
Most businesses need low-cost coverage that will protect them in case they are found liable, or accused in court of being liable, for injury or financial harm to someone.
A customer could trip and fall on the premises, or a defective product could hurt someone or burn down a house, or a competitor might sue over allegedly false advertising.
Your business can purchase policies to cover the instances where its exposure is greatest, or you can get a general liability, or CGL. This policy which serves as a sort of blanket coverage for all instances of possible liability. However, only except where specifically excluded.
CGL policies, however, do not cover liability associated with vehicles owned or operated by a business.
If a customer breaks his leg in your store, CGL will cover it. But if your delivery van runs over someone in the street and breaks his leg, CGL won’t cover it. To obtain liability coverage for your company’s vehicles, you need a business/commercial vehicle policy.
But these policies are geared toward companies for whom automobile use is incidental.
They can have limits and exclusions that make them untenable for businesses. Some as these businesses’, such as dealerships, which have enormous fleets of autos that are regularly driven by non-employees are an example.
The liability coverage is a specialized product for auto-focused enterprises that combines the general liability protection of a CGL policy with business auto liability coverage, eliminating areas of overlap.
These policies are designed to be flexible to meet the needs of individual businesses.
For example, a company could add coverage for loaner vehicles driven by customers whose own cars are being repaired or for personal vehicles used for company business.
Garage-keepers Legal Liability
Garage liability has one major exclusion: It doesn’t cover physical damage to customers’ cars left in your care, such as for service, repair or storage. For example, if one of your employees is test-driving a customer’s car to make sure that a repair has worked and he crashes it into another vehicle.
With this example, your policy will cover your liability for damage to the other vehicle but not the customer’s. For coverage of damage to customers’ vehicles, you need a separate policy called garagekeepers coverage.
Protection against Hazards
Since theft is the biggest hazard under this portion of coverage. An underwriter must know what protection is afforded by the insured against this hazard.
Give me an Example
As an example, auto parking facilities are hazardous when keys are left in cars. This leads to the underlying message, “check for concentration of values and catastrophe hazards.” At this point, a search will find out the risks involved in this coverage.
Most commercial companies can sell you both a liability policy and a garage-keeper’s policy.
They may come bundled as a package deal, but they will be separate and distinct policies. Normally your insurance provider will take down a comprehensive overview of your operations to ensure you are adequately protected based on your needs and risk level.
It is important to understand which coverage are available and what exclusions exist on your policy. This will minimize any future issues you may have if a claim or loss should occur.
As you can see many parts exist within this type of policy. You want to study the coverage options, ask what type coverage options are available.
You can always ask for detail report of each coverage and description. This information is available and important to understand if you are needed of this protection.
Policy Blue Print
This will provide a blueprint in deciding what coverage to decide. After you have found out why type of coverage you need for your operation. If you then seek out a company that can offer you the best rate for that coverage.
This may be a difficult task if you are not shopping within your specific market.
Remember, with any industry, you always want to find a company who has a specialty program in this coverage. The last thing you want to come across is any coverage gaps after a claim or loss.
Or worse, you are categorized under the wrong business operation and have restrictions on your operations.
After you have done your homework and researched your coverage options and what is available to you and your business, then you your next step is to find a specialty carrier who can insure this risk.
If you are a new venture or business owner, you may find some roadblocks in finding the right coverage for the right price. Some carriers may not take new ventures or charge an incredibly high rate for this type of risk.
Shop My Rate
Do not worry however, there are carriers that can place your operations with the right coverage and affordable rates. Usually a broker who represents multiple carriers can begin this search.
Unlike a captive agent who only represent one carrier may not have other options to place your risk. On a closing note about tips, make sure to call at least 3 carriers within your market. You may have to do this search with a commercial broker.
A commercial broker only works with commercial lines, and has a lot more experience than an agent who only offers personal lines, like renters insurance and auto coverage.
Do not be afraid to ask how many years of experience they have in the commercial market and with your type of policy. This is key in saving you lots of future headaches.
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If you are comparing affordable Garage Insurance Quotes, it is imperative that your operation is fully understood by a Commercial Insurance Adviser who specializes in Garage Insurance, since different types of insurance coverage are available under this umbrella.
If you need help shopping Garage Insurance in California, regardless if your Garage Operations is located in Los Angeles CA or San Bernardino CA, we can help! With OVER 30 years of experience helping Car Dealerships and Garage operations find the “cheapest insurance quotes” possible!
Contact us today, at 800-962-0085, we offer low cost garage insurance and insurance services in Fullerton and Orange County CA.
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