Service stations, garages and other businesses that run towing services, or services where they take custody of a vehicle, must be particularly conscious about liability. As such, they are accountable for their customers’ cars, during the course of their everyday work. Cars, of course, are a valuable asset and a number of things can go amiss with a car while it is in a garage’s care. Garage owners and other people who hold custody of a car have to consider damage from sources like fire, bad weather, theft and vandalism.
Fortunately several insurance companies offer what is known as Garagekeepers Legal Liability Insurance for those who are concerned about liability when keeping stationary cars. 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 mechanic who works on luxury sports vehicles or who operates in an area with a heavy criminal presence might decide on a higher liability limit than one who operates on family sedans in a fairly tranquil neighborhood with little pedestrian 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 event occurs.
It is vital to remember that holding a Garagekeepers insurance policy may not let the garage owner off scot free in certain instances. For example, situations like theft by the insured party, substandard parts, shoddy work, misplaced items inside the vehicle or equipment (i.e. CBs, radio equipment, radar detectors, etc.) are usually not covered by Garagekeepers insurance. Garagekeeper insurance was designed to insure against accidents, and should not be used to cover disagreements over workmanship, warranties or parts, such as faulty parts being used in engine repair.
Being accountable for an expensive item like a car, truck, motorcycle or other vehicle is a grave affair. A Garagekeepers insurance policy can help business owners limit their liability if something untoward happens to a car in their custody.
Call us today for a Virginia Garagekeepers Liability quote at 757-583-1828.