Service stations, garages and other businesses that operate towing services, or services where they take custody of a vehicle, must be especially concerned with liability because during the course of their daily work, they will be responsible for their customers’ cars. Cars, of course, are an expensive asset and any number of things can go wrong with a car while it is in a garage’s custody. Garage owners and other people who hold custody of a car have to worry about damage from sources like fire, bad weather, theft and vandalism.
Fortunately for garage owners and others worried about liability when storing parked cars, several insurance companies offer what is known as Garagekeepers Legal Liability Insurance. Designed especially for garage owners, service stations and other people who will regularly and temporarily keep other people’s cars in their possession, Garagekeepers Legal Liability Insurance generally covers damages to vehicles up to a set amount specified by the policyholder. For example, a garage owner who works on high end sports cars or who operates in an area prone to crime and break-ins might opt for a higher liability limit that one who operates on family sedans in a fairly sedate neighborhood with little foot traffic.
When taking out a Garagekeepers Legal Liability policy, the garage owner must also specify a deductible. The lower the deductible, the higher the amount of premiums the garage owner will pay in order to keep the policy current. But the higher the deductible, the more the garage owner must pay out of pocket when an insurable incident occurs.
It is important to note that holding a Garagekeepers insurance policy might not let garage owner off the hook for certain situations. For example, situations like theft by an insured, defective parts, faulty work, loss of items inside the vehicle or equipment (i.e. CBs, radio equipment, radar detectors, etc.) are generally not covered by Garagekeepers insurance. Garagekeeper insurance was designed to insure against accidents, and should not be used to cover disputes over workmanship, warrantees or parts, like a claim that faulty parts were used in engine repair.
Taking responsibility for a high priced item like a car, truck, motorcycle or other vehicle is serious business. A Garagekeepers insurance policy can help business owners limit their liability should misfortune befall a vehicle in their care.