The auto repair and maintenance market declined from 2019 to 2020 due to the COVID-19 pandemic. But, starting in 2021, it is expected to grow at a compound annual growth rate of 7%. If you are involved in the auto business, it’s important that you protect your business’s growth.
One way you can do that is through garage keepers insurance. This type of business insurance can protect you from unexpected financial loss. Let’s take a look at what garage keepers insurance covers and how it can help your business.
What Is Garage Keepers Insurance?
Garage keepers insurance is an insurance policy that provides property insurance coverage for clients’ vehicles while they are in the care of auto-business. In some states, it may also be called storage location insurance or garage keepers liability insurance.
Garage keepers insurance is important for a garage business or any other business that regularly takes custody of customers’ vehicles. Repair shops, car dealerships, and parking garages are just some businesses that should consider this type of insurance.
What Does Garage Keepers Insurance Cover?
Garage keepers policies provide coverage for any vehicle that the garage has in its care for service or repair. This can include cars, trucks, vans, or motorcycles. These policies can protect the vehicles from fire, theft, vandalism, and collision.
A garage keepers policy does not cover certain losses including faulty workmanship, defective parts, contractual obligations from a service station or dealer, or theft from an insured. It also doesn’t cover non-permanent stereo equipment, radar detection equipment, and personal items.
There are three primary coverage options: legal liability coverage, direct primary coverage, and direct excess. The most common type of coverage is legal liability. This covers a loss caused by an employee either from negligence or a mistake.
Direct primary coverage covers loss regardless of who is at fault. The garage owner can take full responsibility for the vehicle and the customers can have peace of mind that their vehicle is covered.
Direct excess is similar to direct primary coverage, but is less common and a little cheaper. It kicks in after the owner’s auto policy has hit its coverage limit for a covered loss.
Choosing a Garage Keepers Insurance Policy
The cost of a garage keepers insurance policy will vary based on your business and the coverage you choose. It may also change due to the type and number of vehicles you work with and your location.
Start by getting a garage keepers insurance quote to get an idea of the prices you are looking at. But, make sure you also pay attention to the coverage that is provided with the policies. Doing so will ensure you are getting the best coverage for your premium.
Protect Your Customers’ Vehicles
A garage keepers insurance policy can cover a number of common losses, including theft, fire, vandalism, and collision. It provides valuable peace of mind for your customers while also protecting you financially.
If you found this article helpful, be sure to read our other business and auto articles too.